Deposit: part of the downpayment paid when you make an Offer to Purchase.
Down payment: must be at least 5% of the purchase price according to CMHC rules. (The downpayment is part of the purchase price).
Goods and services tax: new home buyers must pay a 5% federal Goods
and Services Tax (GST) on the sale price of a new home (not a resale
home). There are rebates.
The rebate reduces the GST and the federal part of the HST paid from
5% to approximately 3.5% for homes valued at $350,000 or less.
The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000. For information visit www.servicecanada.gc.ca
and type in the search box, GST rebate for new homes. You will be taken
to information and an application. All home buyers (new and resale)
must also pay the GST on services such as appraisal and referral fees,
survey fees, legal fees and REALTOR® fees.
Harmonized Sales Tax: As of July 1, 2010, the 12% Harmonized Sales
Tax will apply to new homes. There is a rebate of 71.43% of the
provincial portion of the HST paid up to a maximum rebate of $26,250 for
a home priced up to $525,000. For new homes priced above $525,000 there
is a flat rebate of $26,250.
Property Transfer Tax: payable at the time the property is
registered at the Land Titles office. The rate is 1% per cent on the
first $200,000 and 2% on the remainder. There is a rebate for eligible
first-time buyers. For information visit www.gov.bc.ca and in the search box type PTT rebate.
Mortgage application fee: Lenders may charge your clients a fee to process a mortgage application.
Appraisal fee: to get a mortgage clients will typically need an appraisal. Fees range from $250 - $350.
Mortgage broker's fee: typically a mortgage broker is paid by the
lender. Check with your lender about their service and fee structure.
Property taxes: some lenders require property buyers to add property
tax installments to monthly mortgage payments. Check with your lender.
Mortgage insurance: the federal government requires high-ratio
mortgages (with less than 20% downpayment) to be insured against
default. CMHC fees range and are based on the mortgage amount. For information.
Mortgage adjustment: you will need to pay interest accrued between your closing date
and your first scheduled mortgage payment. It can vary from $100 -
$1,000 depending on the mortgage payment frequency and the mortgage
Land survey fee: lenders may require a survey of the property. Survey costs vary.
Home inspector's fee: most clients (and most lenders) want an offer
subject to a professional inspection. Fees vary depending on the
property. If the property needs a major repair, such as a new furnace or
roof, your clients can use this to negotiate a better deal. Typical
cost is $500.
Home insurance: most lenders require property buyers to carry fire
and extended coverage insurance and liability insurance. Expect to pay
at least $750 on a detached home.
Title Insurance: your lender or lawyer may suggest title insurance to cover loss caused by defects of title to the property.
Septic Inspection: it is very important to know the condition and
location of your tank and field. The same goes for the soap box.
Legal fees: lawyers charge for services such as reviewing the offer
to purchase, searching the title, drawing up mortgage documents,
overseeing the closing, and disbursements and other costs for conducting
a title search, preparing the title deed, preparing and registering the
Estoppel Certificate: if you buy a condominium, this document outlines the condominium corporation's financial and legal data.
Closing adjustments: these include property taxes, utility bills (hydro, water and heat) and condominium maintenance fees.
More costs and fees: these include moving expenses, new lawnmowers, hoses, ladders, paint, carpet, appliances and more.