Costs for Buyers
Costs to be Borne by the Buyer:
- Mortgage – 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. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage. Check out our mortgage calculator to find out your mortgage costs.
- Property Transfer Tax – When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyers’ Program offers an exemption to the PTT if the fair market value of the residence is $425,000 or less. In all regions there is also a proportional exemption for first-time buyers of homes with a fair market value up to $25,000 above the thresholds.
- Lawyer or Notary Fees – Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they should range from $600 – $1500. Find a quality real estate lawyer here.
- Home Inspection fee – Most Realtors® recommend that you get a home inspection by a
certified home inspector. It will cost you between $350-750.
- Land Title Registration Fees – These fees are approximately $300. Your lawyer/notary will arrange
- Fire/Home Insurance Premium – For strata owners, be sure to obtain Strata Deductible Insurance
and Betterment Insurance for any home improvements.
- Sales Tax – If you buy a newly constructed home, you must pay the 5% GST.
- Moving Expenses – This can range wildly depending on many things but it should not be
forgotten and should be budgeted.
- Survey Certificate (if applicable) – $150-300.