Closing Costs

Taxes & Fees | Other Last Minute Costs | Come and Search With Us | Other Things to Consider | Fixtures or Chattels

It’s easy to count your available cash, but remember that all of these cash savings cannot be used as your down payment.  There are last-minute costs such as taxes, legal fees, appraisal fees, moving expenses and house insurance to pay before you are finally in your new home.   

The time to budget for those “end” expenses is NOW.  You must be prepared to pay most, and perhaps all, of the following closing costs. 

You may want to ask us which of the following may apply to you?

Liz Grambart Anders Treiberg

Property Purchase Tax – The British Columbia Provincial Government imposes a property purchase tax, which must be paid before any property can be legally transferred to a new owner.  The tax is 1% on the first $200,000 of the property value and 2% on any value over $200,000.  Ask us about the special regulations for first time buyers in B.C.

Goods & Services Tax – If you purchase a newly constructed home, you may be subject to a 6% GST on the purchase price.  However, if the home is under $350,000, and this is your principal residence, a rebate will reduce the GST paid to 4.48% of the purchase price.  If the price is over $350,000 the net GST to be paid increases gradually until it is a full 6% at amounts over $450,000.

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.  Property taxes are calculated from Jan – Dec and are paid at the end of June.

Appraisal Fee – When the lending institution requires an appraisal of the property before approving your loan, it may be your responsibility to pay the appraiser’s fee.

Survey Fee – The lending institution may also require that a survey certificate be presented to them.  The purpose of the survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries.  If the current owner cannot provide a recent survey certificate, it will be your responsibility to pay the surveyor’s fee.

Mortgage Application Fee – Lending institutions may charge a mortgage application fee.  This application fee may vary between lending institutions.

Mortgage Default Insurance – This type of insurance is required on all mortgage loans in excess of 75% of the appraised property value.  Its purpose is to insure that the lender will not lose any money if you cannot make your mortgage payments and the value of your property is not sufficient to repay your mortgage debt.  The insurance premium is paid to the lender and ranges from ½% to 3.75% of the loan value; however, in most cases this premium is added to the loan amount, and paid for over the term of the loan.

Life & Disability Mortgage Insurance – At your option, you may purchase insurance that will ensure that your outstanding mortgage balance is paid if you die or become disabled.

Fire & Liability Insurance – The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage loan before you receive any insurance proceeds.

Legal Fees – The transfer of property ownership from the seller to the buyer must be recorded in the Land Title Office in order to protect the new owner’s interests.  You will probably want to engage a lawyer or notary public to act on your behalf during the completion of your purchase.  The legal fees for this service will include payment of a registration fee.  If you are financing your purchase with a new mortgage loan, there will be a further fee to prepare and register the mortgage documents.

Do you need a list of legal counselors who specialize in real estate?

Contact Us!

Liz Grambart Anders Treiberg

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Don’t forget to set some money aside for: 

• Home inspection fees
• Moving expenses
• Deposits required by utility companies
• Household goods: kitchen appliances, garden equipment, garbage cans, tools, window coverings, etc.
• Redecorating or renovations

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Now it’s time to begin your informed search for that “right” property.  Together we will discuss and assess your needs so that we can create an action plan, which will lead you to your goal of obtaining the right home or property for you.  Properties in Victoria – Victoria Pacific is the right Buyers Agent for you. 

Let's go look at properties 

Don’t be shy!  If you are seriously interested in a property we will insist that it get inspected thoroughly.  Still it may help to pay particular attention to the following: 

• What size and shape is the lot?  Is it fully serviced with sewage, water, gas and electrical lines? 
• How much square feet of living space are there available?  How many rooms? 
• Condition and age of the roof – are there any leaks or recent repairs?  If only part of the roof was repaired, will the rest cause trouble? 
• Are there proper roof gutters and adequate downspouts.  
• Are the interior walls and ceilings solid?  Drywall?  Plaster?  Is there any evidence of leaks or cracks? 
• Are the floors firm and level?  What about the condition of the floorboards or supports?  Does the ceiling sag? 
• Is there evidence of termites or dry rot? 
• What type of floors are underneath the carpeting? 
• Are stairs and doorframes level and well joined? 
• Is the natural lighting to your liking?  Which way does the front face – north, south, east or west? 
• Are the room sizes adequate for your family’s needs?  Is the layout compatible with your habits? 
• Is the kitchen suitable?  Are there enough outlets and spaces for appliances?  What about cabinets?  
• Are storage areas and closet spaces adequate? 
• What is the condition of the plumbing system?  Is it noisy? Have there been recent repairs?  What about satisfactory ventilating equipment?  Are there exhaust fans in the kitchen and bathrooms?  What type of heating system is it (forced air, gravity, etc.)?  What kind of fuel is used?  Is there a heat pump? 
• Is there sufficient electrical wiring?  Is there enough power for your electrical equipment?  Are there adequate outlets in the house?  What is the fuse arrangement? 
• Can the wall space be utilized to suit your needs?  Check the locations of doors and windows. 
• Drainage – is the property well drained and has landscaping been done to prevent erosion? 
• What is the condition of the basement and foundation?  You should check the walls and floors.  Is the floor dry?  Are there hookups for a washer and a dryer? 
• What about the attic and the crawl space?  Is there evidence of leaks?  Dry rot?  Is there proper ventilation and insulation?  Does the insulation meet current specifications? 
• Are there severe cracks in, or excessive or uneven settlement, of the foundation? 
• How large is the garage?  Is the driveway adequate?  Is there cracking or lifting and is drainage satisfactory? 
• What is the condition of the caulking on windows and doors?  What kind of storm windows are there and what condition are they in?  Do windows and doors open and close easily? 
• Does the layout flow?  Does the home feel good? 

Each house is unique.  Keep some notes to enable you to remember the details later!

We will discuss these issues together once we have walked through the home.

Contact us if there is a home that you are interested in walking through? 

Liz Grambart Anders Treiberg

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Hire A Professional Home Inspector To Give You A Report
Please remember that it is ultimately YOUR responsibility to ensure all of your questions have been answered to your satisfaction since it is could potentially be your future home.  What other questions should you ask?

Is A Property Condition Disclosure Statement Available?

In British Columbia, sellers may be asked to complete a Property Disclosure Statement in a prescribed form.  This statement provides information about the state of the property to all potential purchasers.  It is a good idea to peruse this document carefully as it may provide pertinent information about the condition of a potential home. 

The zoning on a property is established by the local government.  Zoning sets the type of buildings which may be built on any particular piece of property and how those buildings may be used: single-family residential, duplexes, multi-family residential, commercial, or industrial.  You may also wish to ask about the zoning on the surrounding properties to determine if, for instance, a factory or a park could suddenly appear nearby.  You should contact the municipality because they have this type of information. 

A restrictive covenant places a specific limitation on the owner’s use or occupancy of property.  Such things as a prohibited type of exterior finish, the minimum size of the structure, or the maximum height of the structure are only a few examples of the type of restrictive covenant you may encounter.  The act of purchasing a property that has a restrictive covenant compels you to abide by it.   

An easement is a right or privilege one party has to use the land of another for a special purpose.  Examples are: easements given to telephone and electric companies to erect poles and run lines over private property, easements given to people to drive or walk across someone else’s land and easements given to gas and water companies to run pipelines to serve their customers. 

A copy of the State of Title will allow you to see who is registered as the current owner of the property and if there are any registered mortgages, easements, restrictive covenants, right of ways, etc., which may affect the use or value of the property. 

The amount of property taxes payable will figure in the calculation of how much money you can borrow to finance your purchase.  Ask us about the BC Homeowners Grant. 

Liz Grambart Anders Treiberg

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Is the fireplace insert a fixture?

Things contained in a building or on the land are classified as either fixtures or chattels.  The difference between a fixture and a chattel is very important to you because fixtures stay with the property when it is sold, but chattels depart with the owner.  If you see an attractive fireplace insert, a “murphy bed” in the spare bedroom closet, a vacuum canister in the utility or custom window blinds which you think should stay, but are not certain if the seller agrees, ASK us if it is included.  NEVER ASSUME ANYTHING.  Let’s include it specifically on an offer to purchase. 

Liz Grambart Anders Treiberg

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