Closing Costs

Today we're going to talk about closing costs and all the costs that you need to be aware of when you're buying a property.

Everybody understands that you need a down payment when buying a home. That's one of the biggest closing costs to be aware of, but there are other things to keep in mind that you'll need to have saved up for the completion date of your new purchase. The second big cost is property transfer tax in B.C. and in most of Canada property transfer tax, the tax that we have to pay to the government any time we buy a new home. It's calculated as 1% of the first $200,000 and 2% on the amount over $200,000, and it can be a pretty big expense.

So please do chat with a mortgage professional to make sure you understand this cost for your new purchase. There are exemptions on this, which we'll talk about in other videos. The other closing costs to be aware of are legal fees - always required to buy a new home. Legal fees generally cost about $2500 right now, so be prepared for that as well. In addition to those costs that are required to complete your new purchase, there are a few other things that you may want to make sure you have a little extra cash for a home inspection is really important for you to have done. When you're buying a new property. It's not required - it's optional for you. But it's definitely recommended that you have one done and those are generally about $500 as well as sometimes the lender might require an appraisal of the property to confirm the property's value for your new mortgage.

If that's required. It is generally your cost to pay for it, and those range between 350 to $500. Those are the closing costs that you need with your mortgage. There are other things for us to discuss and if you have questions, reach out to our team. We're always here to help.