CHECKLIST OF HOME BUYING COSTS

There are many costs associated with the purchase of a home that the buyer should be aware of. The buyers must be financially able to pay these prior to or at closing.

DEPOSIT: Usually required at the offer stage of the purchase.

DOWN PAYMENT: By way of a certified cheque paid to the buyer's lawyer or notary a couple of days prior to completion.

MORTGAGE APPLICATION FEE: Usually added to the loan amount.

MORTGAGE INSURANCE APPLICATION FEE: If high ratio financing is required, a mortgage loan insurance application fee will be charged. You may be asked to pay this at the time of closing or it may be added to the loan amount.

APPRAISAL FEE: The lender may require an appraisal of the property at your expense prior to granting the mortgage loan.

SURVEY FEE: Your lender may require an up-to-date survey certificate. You may ask the seller to provide one as a condition on the Contract of Purchase and Sale.

HOME INSPECTION: Depends upon the size of the home. Fees can range from $250 to $400 for an average home. This is paid at the time of the inspection.

PROPERTY INSURANCE: The lender will require that this be in place by completion day. Your property will be insured for replacement value of the structure and the contents of your home.

PROPERTY TAXES/UTILITY BILLS: If the sellers have prepaid these beyond the closing date, they will be reimbursed. This will show on the Statement of Adjustments prepared by your lawyer/notary.

LAND TRANSFER TAX: This is calculated as a percentage of the property's purchase price. The percentage may vary but is usually between one to four per cent. Your lawyer/notary will tell you the appropriate rate.

TITLE INSURANCE: Your lawyer/notary may suggest this to cover any defects in the title.

LAWYER/NOTARY FEES: These vary but will be a minimum of $500 plus GST/HST depending on the amount of work to be done.

DISBURSEMENTS: These are costs the lawyer/notary pays on your behalf and will be itemized in the Statement of Adjustments.

GST TAX: Five percent GST applies to new construction, it does not apply to resale homes. There is a rebate on homes under $450,000 for eligible buyers.

Not all of these costs may apply in every situation, but the buyer must be financially able to meet these costs in order to complete the purchase.

Possible Additional expenses to consider: Moving Expenses Service Charges: hooking up utilities, telephone, cable etc.; Appliances; Repairs and Renovations; Decorating; Gardening

Source: British Columbia Real Estate Association