Here is a quick summary of the new home buying process that I find simple, practical and honest.
Development Map of New Projects
Property Transfer Tax
When a residence is purchased a Property Transfer Tax (PTT) is applied. The rate of tax which was changed in early 2016 is as follows: 1% on the 1st $200,000+2% on the balance up to $3,000,000 + 3% on the excess above $3,000,000. As a result of the February 2018 NDP Provincial budget, the 3% currently applicable to transfers of property valued over $3,000,000 will be bumped up by 2% to a hefty 5% on these more expensive homes.
Prepaid Property Taxes or Utility Bills
You will have to reimburse the sellers for any prepaid property taxes or utilities.
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.
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $299 to $350.
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 Realtor's® recommend that you get a home inspection by a certified home inspector. It will cost you about $420 for a small house. Large houses may cost more.
Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be at least $900. This fee may increase if a mortgage is need as well.
Disbursements to Land Titles Office
These fees are approximately $300. Your lawyer/notary will arrange this payment and you should ask as to whether these fees are included in his estimate.