Closing Costs
There are additional costs associated with purchasing real estate. The following is approximately what it may cost you; these figures are only an estimate and should be confirmed by the appropriate parties.
Legal fees $800.00-$1600.00
Real estate property site survey $250.00-$350.00
You may also be able to obtain this survey from the seller or the local municipal office.
Real estate property appraisal $250.00-$350.00
Real estate title insurance $150.00-$250.00.
This is often used by lenders instead
of a site survey.
Real estate property transfer tax
1% of the first $200000.00 and 2% of the balance. There is a maximum amount allowed, for more information contact the
Govt of B.C. at 250-387-0604 or go online at www.fin.gov.bc.ca/revenue/income tax. If you are a first time home buyer you have an exemption of maximum $325,000 (Fraser Valley, Lower MainLand and Greater Victoria only). Higher priced properties have a pro-rated exemption.(some exceptions apply)
Property home inspection $300.00-$400.00
Property tax adjustment.
All municipal taxes are paid in July for the current year. If you take possession of your home before July you will receive a credit for the time the seller had possession of the home. You will however be responsible to pay the taxes in July. If you take possession after July the seller will have paid the taxes for the year and you will have to reimburse them for the portion that you
were in possession of the home. Your lawyer or notary will inform you of this amount.
Real estate property insurance $350.00-$1000.00.
The cost will vary depending on the size of the home and the coverage you want. You must have insurance in place on completion (the day the title transfers to you) you will be required to provide the lender with a copy of the insurance coverage.
Mortgage application fee $185.00
Mortgage insurance fee
If you have 5% down payment the fee is 3.25% of
the total money borrowed, if you have 10% down it is 2% of the total mortgage. This amount is added to the mortgage.
Do your homework
As stated before the previous list of closing costs is only an approximate cost. Before you make an offer on a real estate property check with the appropriate service providers to get an actual cost, this will ensure a stress free closing on your new home.
