Closing Costs
1% Property Purchase Tax
A successful purchase starts with budgeting for the closing costs. Not only do you have to plan to have enough to pay the lawyer or notary, but the 1% Property purchase tax is a big part of this as well. Most people must pay this tax, although first time homebuyers may be exempt. Check this governement link to see if you are exempt as a first time home buyer, CLICK HERE
OR ...Check this link for your costs if you are NOT a first time home buyer, CLICK HERE
NOTE: The Property Purchase Tax (PPT) is a separate provincial tax on all property transfers.
The HST is not the PPT
The cost of real estate transactions will rose on July 1, 2010 with the introduction of the new HST. The people of BC will be particularly affected since our province has some of the highest priced real estate in the country. Approximately 40% of all real estate transactions in BC involve sales priced over $400,000, the original threshold for an HST rebate. NOTE: Be asdvised the HST is usually only payable on all NEWLY constructed homes, existing older homes are not affected.
Lender (Appraiser)
A bank is not just a bank. Having the right backer can be extremely important – it is your money we’re talking about after all! Make sure that your lender and financial representative is someone with whom you feel comfortable, and be wary of any lender who promises you more than you think you can reasonably afford. Your lenders may or may not require an independent appraisal, and typically will make arrangements for the appraisal themselves. Also a Mortgage Broker sometimes might just be a good alternative to a bank for financing, but always compare rates first.
Lawyer or Notary
Your home purchase is far too important a transaction to skimp on legal representation at the risk of leaving yourself open to costly future issues. Find a lawyer or notary who is willing to take the time to answer your questions and who specializes in real estate law. Look at these web sites to select a lawyer or notary for your area: NOTARIES and LAW SOCIETY
Home Inspector
No home inspection is 100% guaranteed, but a few hundred dollars to catch a major problem now is certainly better than many thousands to correct that ‘surprise’ down the road. Take a look at the Canadian Home Inspectors web site for a list of home inspectors in your area: HOME INSPECTORS
Contractor
Planning some renovations? You’re not the only one! The home renovation industry is booming, and in some markets, booking a contractor must be done months in advance (that’s a long time to go without a kitchen). Don’t let finding the right contractor slip through the cracks – planning ahead will almost certainly make your renovation smoother, and you contractor will appreciate the advance notice. Not a bad idea to check the Better Business Bureau to see if that contractor has had any complaints laid against them before you hire them: BBB
The information contained on this page is deemed to be correct and from reliable sources, however it is advisable to verify if necessary as laws are subject to change.
On November 18, 2009 the provincial government announced the HST transitional rules on housing which includes a threshold increase from $400,000 to $525,000, moving the threshold to above the median new home price in the province. According to the government news release announcing the transitional rules, the limit was increased due to feedback from consumers and the industry. CLICK HERE to read more.
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