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11 Costs a Buyer Could Have When Purchasing a Home

Home Inspection
This is important when buying a home to check for major issues with the property. Cost is roughly $500-$700.

Appraisal Fees
Depending on if you're able to make a 20 per cent down payment on your home and depending on the lender, some lenders will require an appraisal to make sure you aren't overpaying on that property. This will come out of your pocket.

GST on New Homes
In BC the GST is 5% on new homes. However, homes that have been previously lived in are exempt from this tax. If you are buying a new home that has been at least 1/10 constructed before April 1, 2013 then you will also be responsible for 2% PST. If this will be your principle residence, income tax rebates are available for up to 36%.

Land Survey Fees
Similar to the appraisal fees, you may be required to have an up to date survey of your property which will again be at your expense.

Property Tax Transfer
Property transfer tax or land transfer tax is another expense to think about. In BC this is 1% on the first $200,000 and 2% on the balance. For first time buyers, this is exempt on property purchased for less than $475,000 or a proportionate exemption for paying between $475,000-$500,000. Purchases over $500,000 will not be exempt. First time buyers can also claim $5,000 on income tax to receive a first time buyer's rebate of $750.

Mortgage Default Insurance
If you can manage to put 20% down, it will definitely be worth it otherwise you're required to buy CMHC mortgage default insurance which will be 0.65-2.75% of your mortgage. This will cost thousands of extra dollars per term.

Title Insurance and Search
Title insurance may be an option to think about, it would cost around $250 to cover problems that may arise relating to the previous owners. You may also want to do a title search to ensure that the Seller is the actual owner of the home. This will come out of your pocket.

Legal Representation
You will need either a lawyer or notary public to ensure documents are processed correctly and to represent your interests. This will be roughly $600-$1,200.

Moving Costs
Depending on how you plan on moving your belongings from one place to another, this is another cost to take into consideration.

Strata Move-In Costs
If you're buying a condo, many strata corporations require move-in fees through their bylaws. Prices range from $100-$400.

Adjustment Costs
You'll want to set aside a couple hundred dollars to pay bills from your previous home until the owner takes possession and you are reimbursed. You may also need to pay $100-$1000 on interest adjustment costs to cover interests on gaps between closing dates and first payment of your mortgage.