Budgeting for New Home Expenses
In addition to your down payment and mortgage installments, other expenses may be incurred for the purchase of your new home. Some are one-time costs-others monthly or yearly.
Being educated and financially prepared will result in a seamless transaction.
List of Buying Expenses
The following is a list of expenses that may or may not apply to your particular situation, but it’s best to review all possibilities in order to budget appropriately.
- A 5% deposit upon an accepted offer.
- Appraisal Fee: may be requested by your lender. Costs vary. $700 – $1000
- Building inspection. Costs vary depending on the size of the property. $350 – $700
- 5% GST on new homes. Resale homes are GST exempt.
- Mortgage application fee.
- Survey Fee: may be requested by your lender. Costs range from $700 – $1000
- Legal Fee: Costs range from $600 – $1200
- Moving expenses.
- Interest adjustments.
- Land Transfer Tax: in BC the rate is 1% on the first $200,000 and 2% on the balance.
- Homeowner’s Insurance
- Service Charges: These include fees for utilities such as cable and TV installation.
- Renovation Costs
- Maintenance Fees (for condominium purchase only)