What are the Costs that Come with Selling My Current Home & Buying a New Property?
Let’s take a quick look at the typical costs associated with buying your new home:
- Land Transfer Tax
In the province of B.C., when ownership transfers title, the buyers are faced with a land transfer tax, also referred to as property transfer tax
- + 1% on first $200,000
- + 2% on balance up to $2,000,000
- + 3% on the balance over $2,000,000
- + 2% on balance over $3,000,000 **If Residential**
Please note that there are some exemptions from this tax for first time home buyers, and new built properties.
- Legal Fees
- As the final stage of your home buying process, your legal team (lawyer or notary), are responsible for legalizing your transaction, including registering your mortgage and transferring title. This estimated cost is between $1,500 & $2,500.
- Appraisal Costs
- Your lender may ask you to order a home appraisal as part of your conditions to confirm the value of your home. In many cases with a down payment of less than 20%, we can have this appraisal completed at no cost to you. However, if required, this cost may vary depending on property value, property location, and whether there is a rush on the report; however, we typically recommend a budget of $300 - $500.
- Home Inspection Cost
- A home inspection is optional in most circumstances. This cost may vary depending on the uniqueness of the property and if there is a rush on the report, but we typically recommend budgeting between $500 - $800
- Other typical costs may include a home insurance policy, GST, adjustment costs, title insurance, your down payment, & moving fees.