You have decided to purchase a home, or are thinking about buying one. You'll be joining the ranks of hundreds of families who realize that home ownership offers a number of benefits including building equity, saving for the future, and creating an environment for your family. When you own your own home, your hard-earned dollars contribute to your mortgage. The equity you earn is yours. Over time, your home will increase in value.
When purchasing a home, you are faced with a multitude of decisions! The primary one is whether you are actually prepared to purchase a home. Locating the perfect home is not always an easy task, and obtaining a mortgage loan can be a complex and tiring process. Although, once you have determined that you are ready to move forward with the required effort towards your home-purchasing goal, the rewards are unquestionable.
I am always familiar with the current homes on the market, and I know neighborhood values well, so I can help you determine which properties are fairly-priced and in good condition before you start your search. I have the expertise to find the golden properties in Vancouver which are ideal for your family.
Steps to consider when Buying:
Loan Pre-Qualification- This can be done over the phone or even online in a matter of minutes.
Call me and I will refer you to a mortgage professional that has an excellent reputation and track record for successfully acquiring loan approval for his/her clients.
Finding The Right Home For You
Once you've been pre-qualified and know what price range you want to stay in, I can help you determine which properties fit your needs by using the (MLS) Multiple Listing Service system to locate them.
I have the best possible resources and communication systems available today to help you locate the homes on the market that match your specifications. You can even search my listings here at my website.
I will help you complete your financing and inspections, and close on the transaction. My top priority is to make sure that your home buying experience is pleasant, cost-efficient, and successful.
GST: If you buy a newly constructed home, you must pay the 5% GST. However, if your house is less than $450,000 you may be eligible for a rebate. There is no GST on resale housing unless there have been substantial renovations to the property.
Property Transfer Tax: This tax is 1% on the first $200,000 of the sale price and 2% on the remainder. First-time buyers buying a property worth less than $425,000 may be exempt from paying this tax.
What is Property Transfer Tax (PTT). This is a provincial tax on real estate purchases to be paid by the buyer upon completion. It is quite a large tax that really can impact the size of your closing costs.
PTT is 1% of the first $200,000 of the home purchase value, and 2% on the balance.Therefore for a home that is $400,000, the PTT cost would be $6,000. However First Time Home Buyers have an exemption to PTT, but there are of course stipulations to the exemption. Here they are:
1) Must be a Canadian Citizen or Permanent Canadian Resident.
2) Must have resided in British Columbia for the past year, and at least 2 of the last 6 taxable years.
3) Must have never held title to property anywhere internationally at any given time.
4) Must not have applied for the property tax exemption previously.
5) To obtain full exemption, the purchase price must not exceed $425,000 CDN. A partial exemption is available for homes between $425,000 and $450,000.
Estimate of PTT exemption amount and PTT due.
Purchase Price Exemption PTT Payable
$425,000 6,500 – 0 – Full Exemption
$430,000 5,280 1,320
$435,000 4,020 2,680
$440,000 2,720 4,080
$445,000 1,380 5,520
$449,000 279.20 6,700.80
$450,000 – 0 - 7,000 Zero Exemption
Prepaid Property Taxes or Utility Bills: You will have to reimburse the sellers for any prepaid property taxes or utilities.
Mortgage Loan Insurance & Application Fee: If you get a high-ration 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. You will also have to pay an application fee. CMHCs standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.
Appraisal Fee: 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.
Survey Fee: Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $250 to $350.
Home Inspection Fee: Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost your from $150 to $350 for a smaller house and large homes 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.
Please contact me if you have any questions about buying a home in Vancouver or elsewhere in British Columbia.