7 Common Real Estate Closing Costs in BC
The Costs of Property Purchase
When purchasing a home in British Columbia, the following are some of the most common closing costs that you may need to budget for:
1 – Property Transfer Tax
This tax is payable by the buyer when the property title is transferred from the seller to the buyer.
The amount of tax payable is based on the purchase price of the property and can range from 1% to 3% of the purchase price, depending on the value of the property.
Check out this Huber Mortgage blog specifically concerning the BC Property Transfer Tax.
2 – Legal Fees and Disbursements
You will need to hire a lawyer or notary public to handle the legal aspects of your home purchase, such as reviewing the purchase agreement, conducting title searches, registering the property transfer, and preparing the mortgage documents.
The legal fees and disbursements can range from $1,500 to $3,000, depending on the complexity of the transaction.
3 – Home Inspection
You may want to hire a professional home inspector to assess the condition of the property before you purchase it.
The cost of a home inspection can vary but typically ranges from $400 to $600.
4 – Appraisal
Your lender may require an appraisal of the property to determine its market value.
The cost of an appraisal can range from $300 to $500.
5 – Mortgage Default Insurance
If you are putting less than 20% down payment on the property, you will need to purchase mortgage default insurance, also known as CMHC insurance, to protect your lender in case you default on your mortgage payments.
The cost of the insurance will depend on the size of your down payment and the value of the property.
6 – Prepaid Expenses
You may need to pay for certain expenses in advance, such as property taxes, strata fees, and utility bills.
These expenses can vary depending on the property and the time of year.
7 – Moving Fees
You will need to pay for the costs of moving your belongings to your new home.
The cost of moving can vary depending on the distance you are moving, the amount of belongings you have, and the type of moving services you require.
Conclusions and Further Thoughts
It’s important to note that these are just some of the most common closing costs associated with purchasing a home in British Columbia, and there may be additional costs depending on your specific situation.
It’s always a good idea to consult with a professional mortgage broker to get a better idea of the closing costs you can expect to pay.
Contact Huber Mortgage to understand your expected closing costs – click HERE to contact.
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
