There are always additional costs to the buyer of a property, beyond the negotiated purchase price, to meet the legal requirements of the transaction and ensure the property is properly transferred and registered in the new owner’s name. In particular circumstances there may be additional costs, but the following list shows the customary costs applicable to the purchase of a home.
1.Property Transfer Tax
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000.
2. Goods & Services Tax (GST)
– 0% on resale (not new) homes
– 5% on new homes with a portion of the tax rebated in some circumstances
(This rebate is only available for principle residences.) Check for current regulations governing rebates.
3. Legal Fees – For conveyancing and disbursements incurred by the conveyance on the buyer’s behalf for the title search, registration fees, etc.
- Average cost $700 to $1200 (depending on the home price)
- If a mortgage is required, an additional fee of about $300 – $400
- Survey – about $200 – $300; Vendor may have a survey, lender usually requires it
- Appraisal (if required by the mortgagor) about $250 – $400
4. Insurance – Depends on the home and the amount of coverage for the contents; will be required by the mortgage lender.
5. Adjusted Costs – Buyer and Seller pro-rate costs of the property taxes, water fees, etc. according to the portion of the year each party owns the property.
6. Monthly Strata Fees – in the case of a strata unit such as a condominium or townhome.
7. Deposit – Usually 5% – 10% of the purchase price; required with the offer. The deposit is held in trust by your realtor’s company and applies as part of the payment for the home on completion of the sale.
8. Home Inspection – recommended in most cases; about $350 – $800 depending on the size of the house.
9. Home Price – The balance of the negotiated purchase price, less the mortgage amount and deposit (and including all Adjusted Costs) must be paid in trust to the conveyancing lawyer usually a day or two before the closing date.
10. Moving Costs – $80 – $100 per hour for a truck and 2-3 movers. Book ahead!