What are my mortgage closing costs in British Columbia?
Total Closing Costs
The exact amount of your mortgage closing costs in British Columbia will depend on a variety of factors, such as the purchase price of the property, the size of your down payment, and the specific terms of your mortgage agreement.
However, in general, mortgage closing costs in British Columbia can include:
Legal fees
The cost of hiring a lawyer or notary to handle the legal aspects of your mortgage transaction, including preparing and registering the mortgage documents.
Legal fees can range from $500 to $1,500 or more, depending on the complexity of the transaction.
Property appraisal fee
The cost of having a professional appraiser determine the value of the property.
This fee can range from $200 to $500 or more.
Title insurance
The cost of purchasing title insurance to protect against any unforeseen issues with the property’s title, such as liens or encumbrances.
Title insurance can cost anywhere from a few hundred dollars to over a thousand dollars.
Property transfer tax
In British Columbia, you may be required to pay a property transfer tax when you purchase a property.
The amount of this tax is based on the purchase price of the property and can range from 1% to 3% of the purchase price.
- 1% of the fair market value up to and including $200,000
- 2% of the fair market value greater than $200,000 and up to and including $2,000,000
- 3% of the fair market value greater than $2,000,000
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Further 2% on residential property over $3,000,000
Home Appraisal
Your lender may require an appraisal of the property to determine its value.
The cost of an appraisal can range from a few hundred to a few thousand dollars.
Home Inspection
While not required, a home inspection is recommended to identify any potential issues with the property before you make your purchase.
The cost of a home inspection can range from $400 to $800 or more, depending on the size and age of the home.
Conclusions and Further Thoughts
It’s important to note that these costs are just estimates and can vary depending on your individual circumstances.
You should speak with your lender or mortgage broker to get a more accurate idea of the closing costs associated with your specific mortgage.
Sincerely,
Michael
PS – One of my hobbies is blogging about mortgages, debt and government policy. During the day I’m a MORTGAGE BROKER in Kelowna, BC!
Check out the Huber Mortgage Home Buyers Guide HERE
