Closing Costs

COMPLETION COSTS GUIDE

GST - If you buy a newly constructed home, you must pay the 5% GST. However, if your house is less than $450,000 you may be eligible for a rebate. For more information, please visit the CRA Website for more information. 

Property Transfer Tax - When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyers' Program offers an exemption to the PTT if the fair market value of the residence is $425,000 or less. In all regions there is also a proportional exemption for first-time buyers of homes with a fair market value up to $25,000 above the thresholds. That means in the Greater Vancouver area, homes valued up to $350,000 ($325,000 threshold + $25,000 proportional exemption) will be charged a pro-rated PTT. For more information please visit: www.rev.gov.bc.ca/rpt/ptt/ptt.htm

Mortgage loan insurance and application fee - If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage. You will also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.

Appraisal - Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers the cost otherwise you are responsible for covering the cost. The fee ranges from $150 to $350.

Survey fee - Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $150 to $350.

Home Inspection fee - Most REALTORS® recommend that you get a home inspection by a certified home inspector. It will cost you from $150 to $350 for a smaller house. Large houses may cost more.

Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they should range from $600 - $1500. As an example;

Purchase Of Property

Fee Including Tax

Under $1 million with 1 mortgage

$1000

$1 million - $2 million with 1 mortgage

$1100

Under $1 million, no mortgage, cash

$795

$1 million-$2 million, no mortgage, cash

$895

New Home and new strata purchase

+$120 to above

Over $2 million

Enquire

 

Disbursements to Land Titles Office - These fees are approximately $300. Your lawyer/notary will arrange the payment.