9 Closing Costs You Might Have Forgotten About

In addition to the down payment, lenders require 1.5% of the purchase price for various fees upon completion. If purchasing a home in excess of $500,000, it’s recommended to have at least 2% of the purchase price ready for closing. First time home buyers may qualify for exemptions. Below are additional expense required:

Deposit 

The deposit is required within 24 hours of the subject removal and forms part of your down payment. This is traditionally 5% of the purchase price, paid via bank draft, and held in trust at your realtor’s office. 

Home Inspection

The fee ranges from $500-$900 depending on the size of the home and the complexity of the inspection.

Appraisal

The lender may require an appraisal to confirm the current value. That  fee ranges from $350-$500 plus GST.

Solicitor

A lawyer or notary will be required to complete drafting documents and ensuring the title of the home is properly transferred. Fees include title searches, land title registration fee, and legal fees.  

Property Transfer Tax

Home purchases in BC are subject to Provincial Property Transfer Tax (PTT). The rate is 1% on the first $200,000, 2% on the remainder up to $2 million, and 3% on amounts greater than $2 million. Qualifying first-time home buyers may be exempt if the purchase price is below $500,000. New constructions may be exempt if the purchase price is below $750,000.

Moving Expenses

Stata units usually have a move-in fee. Connection fees will be charged for initial connections such as hydro, gas and other utilities.  

Home Insurance

Lenders require home insurance to be purchased for all detached properties. Strata units have insurance for common areas of buildings, but we recommend that additional contents and liability insurance be acquired.  

Strata Fees 

The buyer will be required to repay the seller for any prepaid strata fees. 

Property Tax and Utility Bills

The buyer will be required to reimburse the seller for any prepaid property taxes and utilities. This will be paid at the time of closing. The lender may require the buyer to add property tax instalments to monthly mortgage payments.