Cost of buying a home
Your Kelowna Realtors… Things you need to know when Buying a home in Kelowna
Property Transfer Tax
1% of the 1st $200,000 & 2% on the balance of the purchase price.
Lawyer / Notary Fees
Includes your lawyer’s fees & registration of mortgage and certificate of title and disbursements.
Most Lenders require an appraiser’s report confirming that the purchase reflects fair market value. Depending on your down payment, some lenders will waive this requirement.
House Inspection Fee
It is the buyer’s option to have a home inspection to pinpoint defects. This is not a lending institution requirement.
Property Tax Adjustment
Based on the “adjustment date,” you may have to reimburse the Seller for his/her portion of the prepaid property taxes.
GST – What you should know
- GST is not payable on used residential housing
- As of January 1, 2008 new homes are subject to 5% GST. New home buyers that purchase a home from a builder can apply for a 1.8% rebate of the 5% GST applicable to the purchase price (purchase price x 1.8% = rebate) to a maximum of $7,560 for homes costing less than $350,000 before GST
- You do not qualify for a GST rebate if you purchase a home over $450,000
- If your new home is less than $350,000 you qualify for a GST rebate of 36% of 5% of the purchase price of a home to a maximum of $7,560.
First Time Home Buyers requirements
The Government has issued amended First Time Home Buyers requirements. The qualifications for the exemption have changed.
A first time home buyer can now qualify for a full exemption with a purchase price of less than $425,000.00 (previously $375,000.00). A partial exemption is available if the purchase price is more than $425,000.00 but less than $450,000.00. Also, there is no longer a requirement for any financing. For more infor, please see http://www.sbr.gov.bc.ca/documents_liberary/bulletins/PPT_004.pdf