Additional Costs and Fees when Buying and Selling Property
The following represents many of the additional costs and fees incorporated when buying property.
Property Purchase Tax / Land Transfer Fees are calculated between 0.5-2% of the property's total value.
Clearance Certificate The typical fees associated with preparing and filing a clearance certificate, paid by the seller, range from $300-$1000, depending on the complexity of the transaction.
Capital Gains Tax is not applicable on your principal residence.
Goods and Services Tax (GST) of 7% is only payable on newly constructed homes and is often included in the quoted sales price. New home buyers can apply for a 2.52% rebate of the 7% GST applicable on the purchase price. There is no GST on resale housing unless the home has been substantially renovated, and then the tax is applied as if it were a new home.
Provincial Sales Tax (PST) ranges from 0-10% and again, is normally included in the quoted sale price.
Property Tax is an annual fee levied within local communities, which means there are many different rates within each Province. Generally it falls between 0.5-2.5% of the home's market value.
Realtor's Fees in British Columbia are 7% of the first $100,000 and 2.5% of each additional $100,000.
Appraisal Fee Your lender may require a property appraisal at your expense. The cost is between $150-$250.
Survey Fee Your lender will require an up-to-date survey. If the Seller does not have one, you will have to pay to have one done.
Lawyer's Fees Lawyers review the Offer to Purchase, search the title, draw up mortgage documents and tend to the closing details. The fee will be approximately $500-$1000. This amount varies between Provinces depending on the complexity of the sale and the type of property.
Home Inspection Fee is usually around $150-$400.
Property Insurance which covers the replacement value of the structure of your home and its contents.
Service Charges can be in the region of $35-$50 to hook up new services and utilities.
Condominium (Strata) Fees are charged monthly and cover building insurance and maintenance. The building’s property manager will provide you with the fee. For a newly built condo worth $230,000, expect to pay approximately $200 per month (this varies from building to building).