You are begining your shopping for a home, then what you need to know about buying a home right now?


1. You have the option on using a realtor's service or not.

Nowadays nearly 80% Buyers use their own realtor. For more information about what kind of service you can expect from your realtor, please check with the following website: http://www.bcrea.bc.ca/buyers/why_use.htm

 

2.Expenses of home buying

a) The first and most is your home price.

b) The second is the property transfer tax (PTT). PTT is 1% for the first 200K, and 2% for the balance. For example, If you buy a 500k house. The PTT is 8K (200Kx1%=2K, plus 300Kx2%=6K). You can have more information @

http://www.sbr.gov.bc.ca/individuals/Property_Taxes/Property_Transfer_Tax/ptt.htm

c) The third is Lawyer's fee, the lawyer handle the title transfer process here, and they charge around $1,000 for transfer and mortgage.

d) The fourth is Home inspection fee.

 It depends on whom you hire, I would say around $350-$400 for 2000sqft house.

e) The fifth is Insurance.

 Usually the townhouse and apartment strata charge you monthly fee which can cover the townhouse building itself, but not you personal belongs. Some people will buy this additional insurance for around $200-$400 per year, it depends on different company and different policy. Some people chose not to buy. As a single house owner, you must buy the insurance or you can’t have mortgage.

f) If you buy a brand new house, you need to pay GST like you purchase a new computer in futureshop.

The GST rate is 5% now. Nowadays the developer's price is not including GST, so you need to add GST on top of the new home price. The government have a plan named GST Rebate. The rebate reduces the GST from 5% to approximately 3.5% for homes valued at $350,000 or less. The rebate is gradually reduced for homes valued from $350,000 to the maximum value of $450,000. For more information, please check http://www.servicecanada.gc.ca/eng/goc/gst_new_housing.shtml

g) If you need a mortgage, the bank needs to do appraisal for the house you want to buy. Usually you do not pay the appraisal fee if you go with the bank that does this work for you. If you dump the bank and go for anther lender, the bank will charge you appraisal fee around $200.

If you put less than 20% down payment, you need to buy mortgage insurance.

h) Sometimes, you need a land suvey, and it will cost you around $200.

Above are fees may occur during the buying process.

The best news is you Do Not pay commission for your agent’s service when you shopping on MLS market and newhomes.


3. Expenses of being a home owner

a) You pay the Property Tax. The tax amount depand on how much is your home value. Your realtor will show you the current year's property tax.

b) Untility Fees. Usually it's water and draiage.

c) Home maintainance Fee.

If you live in a condo or townhouse, you need to pay monthly fee  to the management company and no worries about the routine maintainance.

If you owns a single house, you need to arrange the maintainance by yourself. Please go to For Seller's page and get more information.

d) Insurance. If you owns a condo or townhouse, it's included in monthly fee you paid. If you owns a single, you pay it once a year.

 

4.Home buying step by step

This is a guide that published by CMHC. You can find much valuable information here http://www.cmhc-schl.gc.ca/en/co/buho/hostst/index.cfm