It is always a good idea to "count the cost" in all things, and it is no different when you buy a home. The Purchase Price is not the final number.
- Property Transfer Tax: The amount of tax you pay is based on the fair market value of the land and improvements (e.g. buildings) on the date of registration unless you purchase a pre-sold strata unit. The tax is charged at a rate of:
For example, if the fair market value of a property is $450,000, the tax paid is $7,000.
- 1% on the first $200,000,
- 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, and
- 3% on the portion of the fair market value greater than $2,000,000.
- Home Inspection - A comprehensive visual examination of the home's overall structure, major systems and components and usually costs around $400 or so depending on the scope and size of the property.
- Appraisal - An estimate of the value of a home you want to buy or a home you already own. Cost is anywhere from $350 and up. Check with your lender as sometimes they will pay for the appraisal.
- Legal Fees - Most buyers will use a lawyer or notary to complete their transaction. Costs will vary depending on your particular deal. Check online for fee schedules to plan ahead. Costs vary from $600 - $1500 and up.
- Changing Your Address - Sending out emails or post cards and visiting the post office to ensure you get uninterrupted correspondence .
- Renovations -Remember to add up all the things you were going to change or upgrade to make your home "yours".
- Moving Costs - From the 'Family and Friends' package to a professional moving company, there will be some cost associated with moving. Don't forget packing materials and possible storage fees.
- Utilities Connection and disconnection fees for utilities like gas, electricity, internet etc.
- Property Taxes & Home Insurance - Paid monthly or lump sum, two more costs to count.