To avoid any surprises along the purchasing process and on closing your purchase, here is a list of what to expect as far as closing costs go:
Part of your down paymentTo be readily available upon subject removal of an accepted offer;
In most cases, a minimum of 5% of the offered purchase price is considered.
Has to be by way of bank draft.
Will be kept in our brokerage trust account until sent to your lawyer/notary.
Usually paid partially by down payment and mortgage.
Under the Home Buyers Plan (HBP) up to $35,000 can be used from your RRSP towards your down payment.
Under the HBP, you have to repay all withdrawals from your RRSP within a period of no more than 15 years. More Information at Canada Customs & Revenue Agenc
Searching & Investigating the Title
Drafting documents for the conveyance of the title into your name
Registering your mortgage on title
Land Title Registration fees
Mortgage Company's Lawyer/Notary
Appraisal and/or Survey (if applicable)
Interest adjustment (monthly mortgage payment are due on the 1st of the month. Unless the closing date is the first of the month, you must prepay the amount of the interest accrued up to the 1st day of the following month. This amount is due on closing day.
1% of the first $200,000 +
2% on any remainder up to a purchase price of $2 mio +
3% on the portion of the fair market value greater than $2mio +
2% on the portion of the fair market value greater than $3mio (as of February 2018)
Foreign Buyer: add 20% to the previous example.
Under the First Time Home Buyers' Program
First time buyers of a principal residence may be exempt (fair market value must not exceed $500,000-$550,000), under very specific guidelines. For exact details, please visit www2.gov.bc.ca
If purchasing a Newly Built Home (pre-sale) as your principal residence, and not exceeding a purchase price of $750,000, then no PTT to be paid. Please visit www2.gov.bc.ca for more details.
Applied to all related services (i.e. Lawyer/Notary & House Inspection)
Applied to New Homes - Rebate may be available.
If the seller has prepaid any expenses such as utilities, water and sewage taxes, or property taxes, they are entitled to a refund of these overpayments. This will be reflected as an adjustment and your lawyer/notary will be responsible to advise you of this via a "statement of adjustment".
Home Insurance, Fire Insurance, High Ratio Mortgage Insurance (if applicable).
We strongly suggest that upon insuring your future home, especially if you are purchasing a strata, for you to obtain a quote to insure yourself against the deductibles of the strata corporation insurance.
We can discuss this point at length together.
Hiring a moving company or renting a moving truck.
Purchasing different furniture
Decoration, paint, renovation, etc.
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