OTHER HOME BUYING EXPENSES

Unfortunately the cost of the home is not the only fee involved in buying your home. There are other matters that need attending to as well, not all are applicable. These come in the form of Conveyancing (transferring the title of the land), Property Transfer Tax, Maintenance Fees, Insurance and more….

Property Transfer Tax (PTT)

Property Transfer Tax is paid the transfer of your name to the title. Basically once you are registered as the fee simple owner of the property. The amount in which you pay depends on the fair market value of the property, the rate set by the BC government looks like the following:

  • 1% on the first $200,000
  • 2% on the balance between $200,000 and $2,000,000
  • 3% on the amount greater than $2,000,000
  • If residential, a further 2% based on the amount above $3,000,000.

You can see how this cost can add up quite quickly.
If you are a foreign investor, i.e. not a Canadian citizen or Permanent Resident, you are subject to a 20% Foreign Buyers TAX charge also. Considering you are a first time buyer we won’t go into too much detail about this but it’s definitely worth noting! So before you start spending that extra cash, remember what happened to this guy…...



Conveyancing

Conveyancing is the process of transferring the land title to your name with the Land Title Office. This usually is dealt with by your Lawyer/Notary Public. Now we can’t guarantee these costs but when asked, we recommend budgeting an additional $1,000-$1,200 for this just to be safe.

Home Insurance

Always recommended and sometime a requirement when moving into a Strata occupied building - a strata is the council that runs a particular building. Rates can vary depending on the size of the home and the particular levels of insurance & building needs. A simple comparison of the market online usually yields some excellent results.



Maintenance Fees (Strata Properties Only)

If you live in a condo/townhome that is ran by a Strata group. They will take care of what’s called your common property. These are areas such as swimming pools, gardens, balconies (LCP/limited common property) etc. Along with this your garbage collection, gardening, cleaning, concierge management etc are all covered usually. This is why you will have a monthly maintenance fee.If you want to see wants included in this fee. You can always find this out prior to buying the home if you are concerned, and also on your strata documentation & financials.

Property Tax

Every year property TAX is due. Now when you move home a few different scenarios can happen. If the TAX is already paid for the entire year, a refund will need to be given to the existing owner. If an amount is owing, the existing owner can either pay it, or you as the new buyer can pay and be given a refund from the existing owner. This can all be worked on between each parties lawyer.

Moving Costs

Some buildings will charge a fee for Moving-In or Moving-Out. Usually a couple of hundred dollars. On top of this, don’t forget to budget for movers, cleaning of you existing home or a U-Haul style truck if you are doing it yourself. Maybe even pizza and beers for friends that help. Oh…. don’t forget your iPhone charger in the wall either!!



It can feel like a lot, we know! But the key is being prepared. The aim here is to give you everything you need in order to plan and budget. Most of these things are 100% manageable if you’re aware of them before hand! If you want more details on any of these expenses, we’re happy to help.

Speak soon!
Vancouver First Time Home Buyers


Jay Mcinnes
jay@mcinnesmarketing.com
T: 604.771.4606

Ben Robinson
ben@mcinnesmarketing.com
T: 604.353.8523