Budgeting for a new home purchase in Penticton is essential. There are mortgage instalments and the down payment to consider, and sometimes, unexpected expenses to add to the equation. The last thing you want is to be caught financially unprepared, or blindsided by taxes and other hidden costs on closing day.
These expenses vary - some of them are one-time costs, while others will take the form of monthly or annual instalments. Some may or may not even apply to your particular purchase. Being educated about all the possibilities and prepared for any situation provides the knowledge to budget accordingly for your move. Use the following list to determine which costs will apply to your situation prior to structuring your budget:
- Initial purchase deposit.
- Inspection by certified building inspector.
- Appraisal fee: Your lending institution may request an appraisal of the property.
- Survey fee: If the home you are purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey.
- Mortgage application fee at your lending institution (sometimes this may include any appraisal fee).
- GST/HST may apply to newly built or existing homes that have recently undergone extensive renovations.
- Legal fees: It is best to involve a lawyer in every real estate transaction to review all paperwork and ensure that titles, liens etc. are all handled in your best interest. Rates (and experience) offered by lawyers come in a wide range.
Property Transfer Tax: Unless you are a first time home buyer in BC this tax will apply to your purchase. In BRITISH COLUMBIA the Property Transfer Tax (PTT) is 1.0% on amounts up to and including $200,000 and 2.0% on the amount exceeding $200,000. Ask our TEAM or your lawyer for clarification about this expense and the rules, regulations and exceptions to it.