Paying additional costs
When buying a home, the purchase price is only one of the costs you will encounter. Here are other possible costs you need to consider in your budget:
One-time costs
Appraisal
- The appraisal determines the value of the home you plan to buy.
GST/PST
- If the home is new and has never been sold before, you will be charged sales tax on the purchase.
Home inspection
- Although it’s not required, you may wish to have the home inspected by a certified inspector.
Legal fees
- A lawyer or notary is required to register the mortgage and complete the legal documents.
Realtor fees
- If you used a realtor to find the home, they may charge a fee for their services.
Property transfer tax
- You may need to pay tax of 1% on the first $200K of the home’s purchase price and 2% on the balance.*
Prepaid property taxes
- If the seller has prepaid taxes for the full year, you must repay them for any outstanding balance.
*First-time home buyers may be exempt from this fee. Learn more on the Government of BC website.
Monthly/ongoing costs
Home insurance
- This is optional, and protects your home and its personal contents.
Mortgage insurance
- If your down payment is less than 20% of the home value, mortgage insurance is required.
Payment protection insurance
- Another optional cost; this ensures your mortgage balance is paid in case of death, disability, illness or job loss.
Strata fees
- Maintenance fees must be paid monthly on the purchase a condominium.
Property tax
- This must be paid annually on any home you own in BC.