You will need to plan ahead to cover the many upfront cost of buying real estate in Vancouver. It’s not a set number however, depending on where you live, closing costs will probably be between 1.5-4% of the purchase price of the property. We have highlighted some of the most important ones, due on the closing date.
Below is most of the upfront cost you need to count for :
HOME INSPECTION It is advisable to make an offer on a home conditional on the outcome of an independent home inspection. A home inspector looks for items that could affect the price and desirability of a home, such as outdated wiring, shabby roofing, an old furnace or cracks in the foundation. The fee depends on the home's size, age and the amount of time it takes to do a thorough inspection. Approximate cost are $400 to 700.
APPRAISAL FEES An appraisal may be required to determine the market value of the property you are buying. If you are putting more than 20% down the appraisal is at your cost and they generally start at $350 and go up depending on the appraisal company, the size of the property and its location. For example, properties over 1800 square feet have a higher cost as well as acreages depending on the amount of land and where they are located.
INSURANCE COSTS INCLUDING PROPERTY INSURANCE, MORTGAGE LOAN INSURANCE, ETC.
LAND REGISTRATION FEE Most provinces charge a land transfer tax, payable by the purchaser, and the amount varies from province to province. This tax is based on the purchase price. In some provinces, first time home buyers who purchase a new home will receive a refund.
PREPAID PROPERTY TAXES AND UTILITY BILLS You May have to reimburse the seller for bills paid in advance.
LEGAL OR NOTARY FEES A lawyer or notary is vital to any home deal.They are drafting the title deed, preparing the mortgage documents, mediating with the seller's attorney, and transferring the land title and much more. Approximate cost $800 to 1,300.
POTENTIAL REPAIRS OR RENOVATIONS
GST/HST ON THE PURCHASE PRICE (FOR NEWLY BUILT HOMES) OR ON THE MORTGAGE LOAN INSURANCE (IF APPLICABLE)
Closing cost of real estate in Vancouver will vary depending on where you are purchasing your home. I will explain each of these costs to you in greater detail to help you manage your financial obligations.
EXPRESS MORTGAGE SOLUTIONS INC.
ADDRESS : 320 - 638 BROUGHTON ST. V6G 3K3,
VANCOUVER, BC, CANADA