In any real estate transaction there is always the closing costs. Understanding these costs is important in considering your final budget. Here is a partial list of what you can expect.
Land Transfer Tax
British Columbia has a land title transfer tax of 1% on the first $200,000. 2% is charged on the any amount over $200,000. Any amount over $2,000,000 is charged at 3%.
Your Lender may require an appraisal to confirm your new homes market value. This cost can run in the $400 range.
A lawyer or Notary is required to review your Purchase Agreement, Search Title, and insure all documents are completed properly. Basic legal fees run around $1000.
A home inspection is vital to protecting your interests in any purchase. Home Inspectors can help make you aware of structural, or service issues prior to sale completion. Expect to pay $500 or more.
Lenders require proof that your new property is adequately insured against fire or other damages. Costs vary, and you should discuss this with your insurance providers as early as possible.
If the seller has pre-paid the annual taxes or utility bills, you will need to reimburse these at closing. This can add up significantly, but also means you don’t need to pay them again until the next billing cycle.
Tax on Mortgage Insurance
Be aware that there is tax on your Mortgage Insurance. This expense can often lead to extra hundreds of dollars that weren’t expected.
Moving Day Costs
Finally don’t forget the moving day cost. The van rental, the helpers, the Condo move in fee. So much to do so little time. No matter how hard we try, there is always something extra we didn’t expect. Budget an extra $500 just to be sure.