THESE ARE SOME OF THE CLOSING COSTS YOU NEED TO BE AWARE OF:
· PROPERTY TRANSFER TAX (PTT)
1% of the first $200,000 plus 2% of the balance of purchase price. This is a provincial tax and is paid on all property purchases.
First time buyers may be exempt, if home is under the threshold price and other criteria is met. See the attched link, http://www.bellalliance.ca Real Estate section for further information.These rules change from time to time and must be checked on the government site or with your lawyer.
· CMHC FEES
High ratio mortgages (less than 25% down) must be insured through CMHC or GE Capital. Mortgage insurance protects the lender against payment default by the homebuyer. This is mortgage insurance: not life or disability insurance. This enables homebuyers to finance up to 95% of the purchase price of a home. See chart below for costs….
These fees are typically added to the mortgage amount and are paid for as part of the total monthly payment calculation. They may however be paid for separately. These premiums are based on the amount of the loan in relation to the value of the home. Check at www.cmhc.ca
To verify cut and paste the following: Scroll to find fees etc.
LAWYER OR NOTARY FEES
Includes, land registry fees, drafting of the documents, disbursements, title searching etc.
Typical buyer fees, when there is a mortgage run from $850.00 up. It is advised to get a quote from your Lawyer or Notary. Please refer to the section on Affiliate Services.
· HOME INSPECTION
You may choose to have a professional inspection of your new home. This is typically a subject clause in your original offer.
Costs from approximately $400.00 to $600.00 and vary depending upon the size of the property. Please refer to the section here on Affiliate Services.
· SURVEY CERTIFICATE
Not required on strata properties.
· TAX ADJUSTMENT
Taxes are usually paid on July 1st. Six months in advance and 6 months in arrears. Vancouver City splits their tax payment into twice a year. Depending in what month your completion date is you may have to reimburse the seller for taxes that they have paid. Also there may be other expenses which the seller has prepaid, such as utilities, water and sewage taxes. Your lawyer will calculate these amounts and show it as either a debit or credit on your statement of adjustment.
· GST - GOODS AND SERVICE TAX : Changes were implemented February 2014 to increase the First Time Buyer excemption price parameters... the new cap is up from $425,000 to $475,000. The sliding scale is now $475,000 to $500,000 up from $425,000 to $450,000..
GST Calculator, see side bar on following web site. Cut and paste:
5% GST charged on all new homes. No GST tax on existing homes.There is a new formula in place 5% plus a 2% transition tax (replaces cancelled HST). Check with me for details as it relates to timing of construction and completion.
Rebates may apply, for owner occupied homes bringing the effective rate down Check applicable government Agency website for full details.
· APPRAISAL FEE
An appraisal may be ordered and the buyer charged for this at the discretion of the lender.