Buying a Home Closing & Moving

Whether you are a buyer or a seller you will be responsible for paying the cost of conveying your property. Typically it will be around $1500 on the buying side and approximately $1200 - $1500 depending on disbursements on the selling side.

As a buyer you will bear the costs of a mortgage unless of course you are paying all cash. We suggest finding a mortgage broker or consultant who can secure the best interest rate and mortgage terms to suit your financial needs.

Your mortgage lending institution generally always pays for the appraisal of your property. They will not usually lend on a property without obtaining their independent appraisal advice. We suggest you ensure you do not bear this cost and that you talk to your mortgage specialist to ensure that your lending institution will bear this cost. 

The Buyer acknowledges Property Transfer Tax is applicable on the Purchase Price of the Property at a rate of 1% on the first $200,000, 2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000, 3% on the portion of the fair market value greater than $2,000,000, and if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 as required by the Property Transfer Tax Act

View the BC Property Transfer Tax and PTT calculator.

The BC HST Tax on new home construction was eliminated April 1st, 2013. GST is only applicable in BC when you buy a newly constructed home, condominium, or townhouse. The entire purchase price, including land, is taxable. Co-operatives, mobile homes on land, and leases are also subject to GST. You may qualify for a partial or full GST rebate, depending on the purchase price and if you are a first time home buyer.

As an incentive for first time home buyers, the Home Buyers' Plan (HBP) is a Canada Customs and Revenue Agency program that allows each eligible purchaser to withdraw up to $25,000 from their RRSP, including a spousal plan to buy or build a qualifying home for yourself. You can also withdraw funds from your RRSPs under the HBP to assist a related disabled person by either using the funds to acquire a home for them or by providing the withdrawn funds for them to acquire the home. The HBP applies to both new and existing houses, condominiums, co-operatives and lots on which the purchaser intends to build, which are located within Canada. The home must be occupied by the purchaser as a principal residence within 1 year from the completion of the purchase date.

The contract of purchase and sale must be entered into before the funds are withdrawn from the RRSP. The purchaser must acquire a home prior to October 1st of the year following the withdrawal. You do not have to include eligible withdrawals in your income, and your RRSP issuer will not withhold tax on these amounts. You can withdraw a single amount or make a series of withdrawals throughout the same year, provided the total is not more than $25,000. If you buy the home with your spouse or other individual, each of you can withdraw up to $25,000.

You have to repay all withdrawals to your RRSP’s within a period of no more than 15 years. You will have to repay a minimum of 1/15th, to your RRSP’s each year until you have repaid all the amount you withdrew. If you do not repay the amount due for a year, it will be included in your income for that year. The HBP is not available if the buyer or their spouse has owned a home in the previous 5 years or they have previously participated in the HBP program and have not fully repaid it by the preceding years end.

The funds must have been invested in the RRSP for at least 89 days before they are withdrawn for use under the HBP. Mortgage underwriters will require proof that the funds have actually been withdrawn from the RRSP.

If you buy a property to live in, called a principal residence, you do not have to pay taxes on the capital gain of your home. For Investment Properties where you do not reside, real estate profits are not taxed until you sell. If you purchased a property for $300,000 and it is appreciated up to $450,000, the $150,000 gain is protected from taxes until you sell. You benefit because your investment can grow tax-free year after year.

Another option is to re-mortgage the house or get a line of credit against it to buy another one and again, it's tax-free. You are taxed at your personal tax rate on 50% of your capital gains, unlike income from your employment and interest income from Bonds, GICs, etc which are 100%. Investment Properties allow for many tax deductions. Your finance and operating costs such as mortgage interest, property management fees, property taxes, repair and maintenance, etc. can all be deducted from income.

By owning a designated live/work space there are many tax advantages. Your finance and operating costs such as mortgage interest, property taxes, repair and maintenance can all be deducted from your income. You must however pay an initial GST payment on the property. For more information call us or your personal accountant.

So, you’ve signed the papers, dotted all the i’s and crossed the t’s—you own a new home! You’ve almost reached the end of your journey. However, now, faced with the daunting task of moving, it may seem as though the journey has just begun.

Moving can be a time-consuming and stressful experience if you let yourself be overwhelmed by the job. Remember, though, having a successful move means taking care of the details, one by one. If you break the process down into steps and arrange your time accordingly, you can make it manageable. Download the property moving checklist below to ensure you’re covering all the bases, and you will be well on your way to a successful move.

Download the Moving Checklist (PDF format)