GST - If you buy a newly constructed home, you may be subject to a 5% GST on the purchase price. However, if the home is under $350,000, and this is your principal residence, a rebate will reduce the GST paid to 3.2% of the purchase price. If the price is over $350,000 the net GST to be paid increases gradually until it is a full 5% at amounts over $450,000. There is no GST on resale housing unless there have been substantial renovations to the property.
Property Transfer Tax - When a residence is purchased a Property Transfer Tax (PTT) is applied, which must be paid before any property can be legally transferred to a new owner. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyers' Program offers an exemption to PTT if the fair market value of the residence is $375,000 or less, in the Greater Vancouver,
Prepaid property taxes or utility bills - You will have to reimburse the sellers for any prepaid property taxes or utilities.
Mortgage loan insurance - If you get a high-ratio mortgage (a mortgage where you pay less than a 25% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage.
Mortgage application fee - You will also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.
Life & Disability Mortgage Insurance - At your option, you may purchase insurance that will ensure that your outstanding mortgage balance is paid if you die or become disabled.
Appraisal - Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $150 to $350.
Fire & Liability Insurance – The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage loan before you receive any insurance proceeds.
Survey fee - The lending institution may also require that a survey certificate be presented to them. The purpose of the survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries. If the current owner cannot provide a recent survey certificate, it will be your responsibility to pay the surveyor’s fee.
Home Inspection fee - Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost you from $150 to $350 for a smaller house. Large houses may cost more.
Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be at least $400.
Disbursements to Land Titles Office - These fees are approximately $300. Your lawyer/notary will arrange this payment.