More than the Deposit

sold house

Real Costs

There is more to buying a home than just the purchase price. Costs associated with the transaction can be sizable. Make certain that you have taken this into consideration before you buy.

Costs you will be paying

  • Mortgage Loan Insurance Premium – may be required by your lender if you are putting less than 20% down.
  • Appraisal Fee – many banks will want an appraisal of the property you wish to buy.
  • Deposit – this is the cash you will need to put down when you make your offer. 5% – 10% of the purchase price is usually acceptable.
  • Down Payment – depending on the type of mortgage you apply for the amount can vary from 5% to 20% of the purchase price.
  • Home Inspection Fee – you might have this as a condition of your offer to Purchase. Price may vary depending on the size of the home, or if there are other issues that require a more intensive inspection.
  • Property Transfer Tax (B.C.) – currently it is 1% of the first $200,000 and 2% of the balance. If you are a first time buyer purchase price thresholds apply.
  • Prepaid Property Taxes – this is a reimbursement to the vendor who has pre-paid these costs (taxes, fuel oil, utilities) in advance.
  • Property Insurance – your lender will require that you property insurance in place on or before the day they give you the money as security for the mortgage.
  • Survey Certificate – your lender may require this document prior to finalizing the mortgage. Sometimes the seller will have one and will pass it along. Otherwise be prepared to spend up to $2000 or more to have a survey completed. You might think about negotiating this as part of your purchase agreement.
  • Water Quality Inspection – unusal to have this where municipal water is provided. If you have a well you will want to have it tested.
  • Legal Fees and Disbursements – these are the fees you pay your lawyer or notary. They can be substantial so ask your REALTOR for a recomendation or shop around. Expect to pay $500 or more.
  • Title Insurance – while not common in B.C. it may be something you will want to consider. Your REALTOR can advise you on the necessity.

There is More

  • Appliances – do they need to be replaced?
  • Gardening equipment – if the seller is moving to an apartment you might negotiate a package price.
  • Window treatments – most offers will include these items. But make sure.
  • Decorating materials – no house becomes your home until you change a few things. Things such as paint, wallpaper, flooring and of course the tools to help with the work are all expensive.
  • Hand tools – what’s a home without a hammer? You will need one to hang your pictures and probably screwdrivers, plyers etc. will come in handy.
  • Moving Expenses – moving during the beginning, middle or end of the month is the most expensive. Try and negotiate closing and possession dates during the off period
  • Repairs – wouldn’t you know it. The day you move in the lights go out. Plan on a contigency these repairs.
  • Utilities and Services – Cable, phone, hydro, gas all require hook- up fees. Check on them before you move so you know how much to set aside.
  • Condo Fees – read your minutes carefully. Things like a non-fundable move-in fee may apply. There may also be a requirement to pay the first months fee.

Some costs may have been overlooked. In Vancouver, on the back of the Contract of Purchase and Sale you will find a guide with more information.

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

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