Down Payments - The initial payment when purchasing a home, which is purely principal. Down payments depend on mortgage requirements. Your total down payment is a combination of the amount you pat the lawyer/notary at completion and any deposit (typically 5%) collected by your agent at the time of subject removal. When the down payment is less than 20% for personal residence or 35% for investment, your mortgage will require special insurance for CMHC (Canada Mortgage and Housing).
Conveyancing - Conveyancing is the process of transferring ownership of a legal title of land (property) from one person or entity to another. Conveyancing fees are often referred to as legal fees which are collected by a lawyer or notary.
Disbursements - Disbursements are expenses that your lawyer charges you for out-of-pocket expenses that you would otherwise be required to pay if you handled the transaction yourself. These Fees includes property, registration and title insurance.
PTT - The British Columbia Provincial Government imposes a Property Transfer Tax, which must be paid before any home can be legally transferred to a new owner. However, some buyers may be exempt from this tax. The Property Transfer Tax in BC is calculated by the following: 1% of the first $200,000 of the purchase price + 2% on the balance of the purchase price.
Property Tax – If the current owners have already paid the full year’s property taxes to the municipality, you will have to reimburse them for your share of the year’s taxes.
Adjustments –Adjustments are often made at the time of completion for items such as: Property Taxes, City Utility Fees and Strata Fees that have been prepaid by the seller. The buyer is responsible for reimbursing the seller for any of these expenses which has been prepaid for anytime after the adjustment date.
Strata move in fees - If you will be purchasing a strata property (condo, townhome, etc) you will likely be responsible to pay a move-in fee. The fees vary depending on what the strata corporation has decided, this information can be found in the strata bylaws.
GST - If you purchase a newly constructed home, you may be subject to GST (5%) on the purchase price. There may be some rebates available depending on the value of the home.