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    What are your buying costs when you purchase a home?

    If you’ve decided to buy a house, it’s critical that you understand all of the costs involved, in addition to the purchase price.

    Fees for home inspections

    A home inspection is a report that covers structural and moisture issues, as well as electrical, plumbing, roofing, and insulation. Depending on the size of the home and the complexity of the inspection, the fees range from $500 to $1200. An older home, a home with a secondary suite, a crawlspace, or a laneway home may be subject to an additional fee.

    Application to a financial institution for a mortgage

    A mortgage application fee may be charged by lenders, which varies depending on the lending institution.

    Mortgage insurance

    Mortgage insurance is a type of insurance that protects against mortgage default. This insurance is required by the federal government for high-ratio mortgages with less than a 20% down payment. The cost is added to the mortgage principal and ranges from 0.60 to 4.50 percent of the loan amount. On homes worth $500,000 to $1 million that require mortgage insurance, the federal government requires a 10% down payment. A 20% down payment is required on homes valued at $1 million or more. For homes in this price range, mortgage insurance is not available.

    Fees for appraisals

    You may be required to have the property appraised before your lender approves your mortgage. This cost may be covered by your lender in some cases. If you don’t, you’re the one to blame. The cost varies between $300 and $450, plus GST.

    Fees for land surveys

    A survey of the property may be required by the lender. The fee varies, but it is usually around $500  GST.

    Goods and Service Tax (GST)

    A new home’s GST is 5% of the purchase price. For new homes priced up to $350,000, a GST rebate of 36 percent of the GST paid is available, and for new homes priced up to $450,000, a partial rebate is available.

    Buyers are also responsible for paying GST on fees paid to appraisers, home inspectors, lawyers, Notary Publics, and REALTORS®.

    Sales tax levied by the province

    Except for legal and notary fees, the PST is not usually charged on services. Legal and notary fees are subject to both GST and PST.

    Tax on Transfers of Real Estate – Property Purchase Transfer Tax (PPT)

    When buying a home in British Columbia, buyers must pay a provincial Property Transfer Tax (PTT). The tax is 1% on the first $200,000 of the purchase price and 2% on the rest of the purchase price up to and including $2 million. On amounts greater than $2 million, the PTT is 3%. If the property is residential, an additional 2% PTT is due on the portion over $3 million.

    If the purchase price of their home is less than $500,000, qualifying first-time home buyers may be exempt from paying the PTT. For homes priced between $500,000 and $525,000, there is a proportional exemption. The rebate is nil if purchase price is more than $525,000.

    If the purchase price of their new home is less than $750,000, qualifying buyers may be exempt.  For homes priced between $750,000 and $800,000, there is a proportional exemption. There is no rebate for homes valued at $800,000 or more.


    -Taxes on real estate

    A property buyer may be required to reimburse the seller for any prepaid property taxes, depending on the terms of the contract. Property tax instalments may be required by the lender to be added to monthly mortgage payments.

    -Bills for utilities

    A buyer is usually required to reimburse the seller for any municipal sewer and water fees that were paid in advance.

    -Security deposits and rent

    Because the buyer is responsible for reimbursement when the tenant leaves, if there is a secondary suite or laneway home rental and the tenancy continues, the buyer receives the security deposit from the seller with accrued interest.

    Mortgage life insurance

    This type of insurance will pay off the remaining balance on the owner’s mortgage if they die.

    Insurance against fire and liability

    The majority of lenders now demand that property buyers have fire, extended coverage, and liability insurance.

    Homeowners’ insurance

    Home insurance is usually required by lenders for home buyers who have a mortgage. The insurance should take effect on the earlier of the completion date or the placement of the remaining funds in trust.

    Fees for legal or notary public services

    Buyers frequently retain the services of a lawyer or Notary Public to assist them in drafting documents and ensuring that the home’s title is properly transferred. The following fees are likely to be charged:

    A title search for a property can cost up to $11 plus a $75 land title registration fee.
    Visit the Land Title and Survey Authority of BC’s website at for more information on land titles.

    Legal fees can range from $600 to $1300 approximately. This fee may vary depending on the complexity of the transaction.

    Moving Coast

    Moving costs are determined by the distance travelled and whether or not professional movers handle all of the packing. Rates can differ.

    Utility connections

    Hydro, gas, water and sewer, cable, and phone connections all have fees.

    Door locks

    should always be rekeyed by new owners. The price varies depending on whether the locks are mechanical or electronic.

    Fees for strata management

    The first day of each month is usually when strata management fees are paid. Please contact me if you have any questions about closing costs.

    Fees for Real Estate commissions

    How much does it cost to hire a real estate agent? In the real estate industry, there is no set commission rate. The majority of Realtors are paid after the property is sold. Fees are usually paid to the real estate company from the sale proceeds by the lawyer or notary involved in the transaction.

    You and your Realtor will always agree on compensation in advance. The term “average commission” is a misleading term. The amount of commission paid is determined by the services provided by your Realtor, which can vary greatly depending on your needs as a client or the Realtor’s business model.

    When is a commission payable?

    The standard Multiple Listing Contract states that commission is due on the earlier of the completion date under the Contract of Purchase and Sale or the actual completion date of the sale.

    For more details do not hesitate to contact us or visit our website to get started.