Know Your Closing Costs

There are some basic costs to the buyer with any mortgages in Canada

* Legal costs to transfer title and register the mortgage (typically $900-$1000). It can be slightly higher for a condominium due to the strata requirements

*Appraisal on the new home to determine the loan to value for the mortgage lender (typically $250-$350). Costs can vary depending if it is in rural or urban areas.

*In BC, buyers are required to pay a Property Purchase Tax (PPT). If you are a first time buyer this tax is waived. All other buyers must pay this fee at the time of closing directly to the lawyer. In BC the PPT is 1% on the first $200,000 and 2% on the balance of the purchase price.

*In BC, buyers of new homes must pay the Goods and Services Tax (GST) currently set at 5%. A portion of this tax (36%) is refunded to the buyer at closing.