Monthly Archives: June 2014

An Overview of Buying Costs











Mortgage application
Lenders may charge a mortgage application fee, which will vary depending on the lending institution.

Mortgage insurance
The federal government requires high-ratio mortgages (with less than 20% down payment) to be insured against default. The cost ranges between 1.25 to 3.75 per cent of the mortgage amount which is added to the mortgage principal.

Appraisal fees
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender will cover this cost, if not, you are responsible. The fee ranges and is typically as much as $300.

Land survey fees
Lenders may require a survey of the property. Survey costs vary.

Home inspection fees
A home inspection is a report on the condition of the home that can alert you to any potential issues such as structural and moisture problems, as well as electrical, plumbing, roofing and insulation. Fees can range from $500 – $700 depending on the size of the home and the complexity of the inspection. Some inspectors have surcharges for a secondary suite, a crawlspace, over even an older home.

Goods and Services Tax (GST)
A GST rebate equivalent to 36% of the GST paid is available for new homes priced up to $350,000 and a partial rebate on new homes priced up to $450,000.

Buyers will also pay the GST if payable on services such as appraisals and home inspections and survey fees.

Provincial Sales Tax
The PST is generally not payable on services except for legal and notary fees. Both the GST and PST are paid on legal and notary fees.

2% BC Transition Tax
This is a new tax coming into effect on April 1, 2013. It applies to the sale of new residential homes that are 10% or more complete on April 1, 2013, with ownership or possession occurring on or after April 1, 2013 and before April 1, 2015.

Property Transfer Tax
Payable at the time the property is registered at the Land Titles office. The rate is 1% per cent on the first $200,000 and 2% on the remainder. There is a rebate for qualifying first-time buyers of homes priced up to $425,000 and a proportional rebate for homes priced up to $450,000. The PTT on a $500,000 home is $8,000.

Property taxes
Some lenders require property buyers to add property tax installments to monthly mortgage payments.

Pre-paid property taxes or utility bills
A buyer typically is required to reimburse the seller for any prepayments.

Mortgage life insurance
If the owner dies, this type of insurance will pay off the balance owing on their mortgage.

Fire and liability insurance
Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.

Home insurance
Buyers will a mortgage will be required to buy home insurance. To be safe, make the insurance effective on the earlier of either the completion date or the date that you pay the balance of the funds in trust.

Most lenders also require property buyers to carry fire and extended coverage insurance and liability insurance.

Legal or Notary Public fees
Legal or notary public fees and expenses will likely apply to assist with drafting documents and ensuring the title of the home is transferred properly and without incident.

Moving fees
Moving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.



Source –

New Sotheby’s International Realty – Downtown Vancouver Office Space


Excited to be moving to our new office space on Mainland Street – Lots of airy space and beams in this heritage building.

My station

My new address is;

Harry Kramm
#130 – 1152 Mainland Street
Vancouver, BC V6B 4X2

Drop in and visit – Harry Kramm