Hidden Fees to Be Aware Of When Purchasing In Greater Vancouver
Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase then the price of the home. Here are 5 fees to keep in mind as you begin to budget.
- Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Generally, you can expect to pay between $400 to $800 depending on the home and the location.
- Title Insurance. Most lenders require title insurance when you're getting a mortgage. This protects the lender and your investment in the home should someone ever try to fraudulently forge the title documents. This is extremely rare, but lenders always like to cover their behinds.
- Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $500+, depending on the size of the home and scale of the appraisal.
- Taxes. The taxes each buyer pays at the closing table differ, but essentially the buyer and the seller split the cost of the annual property tax bill based on the days that each owns the property. This is calculated as of the July 1st property assessment and will be done by your lawyer.
- Vancouver Empty home tax. This was a newly created tax designed by the Government to decrease the housing shortage in Vancouver by taxing homeowners who leave their properties vacant for more than 6 months out of the year. If you are purchasing in Vancouver, you will receive a notice in the mail instructing you on how to register your property online to avoid this tax if you live in or rent out your property.
As you can see, lots of moving pieces, but none too difficult to navigate. The largest expense will of course be the purchase of your new home, but it's always good to have extra on hand for the small fees that tend to add up at closing. As always, if you have other questions on real estate, or other, please reach out. I’m here to help. 🙂
Jen
604-726-6087 or
Jennifer.Corrigan@exprealty.com
