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Purchase Price Check List |
Buying a home costs more than the offer you make. There are numerous other expenses that will add to the amount that you'll need to spend. This purchase price checklist outlines all the costs you can expect. Please note that they can vary by province and are subject to change.
The starting point in your calculation... if you're like
most first-time home buyers, you'll need a mortgage for the
majority of this! Although fees vary across the nation, it can cost between $800.00 -$2,000.00 depending upon whether you are re -mortgaging your existing home or buying new. As prices do vary, please contact our office and we will refer you to a lawyer for an accurate quote on these fees. For a list of Lawyers / Notaries please visit
For Full details, please visit: www.rev.gov.bc.ca/rpt top
of page Fees paid to the provincial government for recording a title
transfer, mortgage registration or other instrument such as
an Assignment or Lien with the local authorities. The lawyer
will collect these fees as part of their overall legal fee
package. Must be purchased if you are buying a home for less than 25% down. A sliding fee scale applies, depending on the percentage of the purchase price required in a first mortgage (some minor exceptions). The fees can be added to the mortgage and are as follows: Up to 80% = 1.00 Up to 85% = 1.75 Up to 90% = 2.00 Up to 95% = 3.25 There are some special programs through the insurance companies which charge a slightly higher premium, but these are the standard fees fro purchases. Canada Mortgage Housing Corporation (CMHC) http://www.cmhc-schl.gc.ca/en/index.cfm Obtained by your lawyer and required in many municipalities
throughout Canada before a property transfer can take place.
This is an acknowledgement from the building department that
the property either has, or is clear of outstanding work-orders.
Work-orders are specific clean-up or fix-up requirements that
the owner is legally required to do, and which must be completed
before ownership can be transferred. Obtained by your lawyer at the time of sale to confirm that
local taxes have been paid up to date. If they are not up to
date, the seller is required to pay them from the proceeds
of the sale. If there are insufficient proceeds, then you may
be legally required to pay the outstanding taxes. If, on the
other hand, taxes have been prepaid, you may have to compensate
the seller for them. Provincial "New Home Warranty Program" premiums — New Homes Only! A third party (provincial) warranty program between a builder
and a buyer. With the exception of Ontario and Quebec, membership
in such a program is voluntary for the builder. Through these
programs, your home is guaranteed against defects for at least
one year. All homes with a high-ratio insured mortgage (greater
than 75% loan to value) must be enrolled in such a program. Mortgage Appraisal and Application Fees Appraisal fees generally range from $214.00-$500.00 depending on the property. the high-ratio application fee ranges, but is usually $165.00. A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a purchase agreement. The scope and detail may vary, but most reports outline any particular problems and associated repair costs. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, or obtain a referral from your mortgage broker or agent or go to www.cahpi.bc.ca for a list of home inspectors. The legal written and/or mapped description of the location
and dimensions of your land. The survey should also show the
dimensions and placement on the lot of any structure, including
additions such as pools, sheds and fences. An up-to-date survey
is often required by a lender as part of the mortgage transaction. New to Canadian consumers over the last few years is the
introduction of title insurance into the home buying process.
Title insurance can be purchased by home buyers to protect
against potential deficiencies in a number of areas, such as
the land survey. There are numerous benefits to this product,
and you should consult your lawyer with any questions in this
product. Some local utility companies (hydro, gas, oil) charge a fee
on closing to connect new buyers up to their service. More
common, however, is an extra charge on the first billing. Property Tax and Prepaid Utilities Adjustments If the previous owner prepaid property taxes or other utilities,
they will be credited the prepaid portion on closing. If they
paid all their taxes by April, expect a large adjustment cost
on closing! If you arrange to make your mortgage payments monthly on the
first day of the month, and your transaction closes after the
first day of the month, your lender will charge you interest
on closing to the next interest date, called the Interest Adjustment
Date (IAD), when your payment cycle will commence. This can be
a sizeable amount, but it is the correct interest you should
pay. For example, close on June 15th, pay 15 days interest on
closing and start payments on August 1st. Please visit WWW.cra-arc.gc.ca/tax/individuals/topics/gst-hst-rebate/substanially-e.html |
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