SHOWN BELOW IS A LIST OF STANDARD EXPENSES TO CONSIDER WHEN PURCHASING OR SELLING REAL ESTATE IN BRITISH COLUMBIA.

LAND TRANSFER TAX

• The land transfer tax is a one‐time tax levied by your province when you purchase a property.
• The tax is based on a percentage of the purchase price of the property, and varies from province to province.
• Some municipalities also charge a land transfer tax 

ASSOCIATED LEGAL COSTS

• Legal costs cover your lawyer’s fees or your notary’s fees.

• Lawyer or Notary will review the terms of the offer

• Conducting a title search on the property

• Registering a new title with purchaser names on it
• Obtain relevant documents, such as surveys and evidence of liens on the property
• Check the statement of adjustments for taxes and other costs that have been pre‐paid by the seller

PROPERTY INSPECTION

• A home inspector assesses a property’s condition preferably before Subject Removal
• Inspector will identify what is not working properly, needs to be changed, or is unsafe.
• Inspector will identify where there have been problems in the past, such as a leaking basement or termite damage.

OTHER POSSIBLE COSTS

• Interest adjustments between date of closing and first mortgage payment
• GST/HST on a new home or a home that’s been extensively renovated
• Title insurance coverage for losses related to title fraud, survey issues and challenges to the ownership
• Service charges from utility companies for hook‐ups on electricity, gas, internet and telephone services
• Appraisal fees
• Moving costs
• Storage costs if you must leave your current residence before you are able to move into your new home
• Furniture and appliances
• Real estate commissions

CONTACT ME TO DISCUSS YOUR RELA ESTATE NEEDS

Mobile:      604.828.3847

eMail         rwhite@sutton.com

WHERE DO YOU WANT TO LIVE OR INVEST ?

WHAT TYPE OF HOME DO YOU PREFER?

• Single‐family detached homes stand alone on their own lot.
• Single‐family semi‐detached homes are joined on one side to another home.
• Duplexes contain two single‐family homes, one above or beside the other.
• Row houses (townhouses) are several single‐family units, located next to one another joined by common walls.
• Stacked townhouses, link or carriage homes, condominiums and co‐op apartments.

• You own the land and house and are responsible for everything inside and outside of the home.

• You own your unit and share ownership of common spaces.
• The condominium association is responsible for upkeep of the building and common interior elements
• Strata fees take care of such as halls, elevators, parking garages and the grounds.
• You pay a monthly strata fee to the condominium association to cover maintenance costs.
• The fees vary but can somtimes include utilities, TV services and taxes.
• You may also have to buy or rent your parking space.
• Condos often have strict rules regarding rentals, pets, noise, use of common areas and renovations to units.
• Be aware of your condo’s rules before putting in an offer.

• Similar to condos but instead of owning your unit, you own shares in the entire building with the other residents.
• Co‐op residents pay for maintenance and repairs through monthly fees
• Owners are subject to the rules and regulations of the co‐op board.
• If you decide to sell or rent your shares, the co‐op board has the right to reject your prospective buyer or tenant.
• Read the co‐op’s rules before making an offer.

The federal government offers a range of Buyer assistance programs to help homebuyers.

FIRST‐TIME HOME BUYERS’ TAX CREDIT

• A $5,000 non‐refundable income tax credit on a qualifying home.
• The credit provides up to $750 in tax relief to assist first‐time buyers with purchase costs.
• For more information, check the Canada Revenue Agency’s (CRA) website: www.cra‐arc.gc.ca

HOME BUYERS’ PLAN

• A one‐time withdrawal up to $25,000 from a Registered Retirement Savings Plan (RRSP) by first‐time buyers
• Generally, you have to repay all withdrawals from your RRSP within 15 years.
• For more details, visit CRA’s website at:www.cra‐arc.gc.ca

CMHC GREEN HOME PROGRAM

STANDARD MORTGAGE OPTIONS

• A mortgage is a loan, generally used to buy a property.
• How much you pay depends on how much you borrow.

STANDARD MORTGAGE TERMS

Principal                       =        How much you borrow

Interest rate                  =        How much the bank charges you to borrow the nmoney

Amortization Period   =         How long it takes to pay off the mortgage

Lender                          =        Mortgage Company, bank or lending institution

• Mortgage Terms and Rates are often negotiable, depending on the lender.
• Do not be afraid to negotiate interest rates and mortgage terms with different lenders.
• They are offering you a product and talking to more than one lender helps you make an informed decision.

WHAT TYPE OF MORTGAGE IS BEST FOR YOU ?

• Fixed rate mortgages: Your interest rate is locked in for a specified period called a term.
• Your payments stay the same for the mortgage’s term so you will not pay more if interest rates increase over time.

Variable rate mortgages:        

• Rate of interest you pay may change if rates go up or down.

• Require a down payment of 20% or more of the property’s value.
• You are not required to get mortgage default insurance with a conventional mortgage.

• The mortgage cannot be paid off early without paying a prepayment charge.

• A mortgage that can be paid off at any time during the term, without having to pay a charge.
• The interest rate for an open mortgage may be higher than for a closed mortgage with the same term.

• You sell existing home, you can transfer your mortgage to your new home and keep your existing interest rate. 
• You may be able to avoid prepayment penalties by porting your mortgage.

• You can make lump‐sum prepayments or increase your monthly payments without having to pay a charge.
• This can help you pay off your mortgage quicker and save on interest penalties.