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Property Purchase Tax
The buyer is responsible, except for first time buyers, for paying this tax upon registration of the title. It is 1% of the purchase price up to $200,000.00 and 2% thereafter.
Survey Certificate
This is often required by the mortgage lender in order to insure that there are no encroachments on the set back requirements as determined by the local municipal zoning by laws. It must be done by a registered land surveyor and costs about $300.00. This is often available from the Seller, but if not, most lenders will accept title insurance instead and this is a less costly option.
Homeowners Insurance
This protection can be purchased from any insurance agent of your choice and is designed to cover the home you are buying and plus the contents and your personal liability. The mortgage lender will require a clause in the policy showing that any loss payable will include the lender's interest as well as the buyer's. This clause only covers the building portion of the coverage but must be provided to the conveyancer prior to completion.
Closing Cost Chart
Here are some estimated closing costs for Kelowna and area.
| Estimated Closing Costs for Kelowna & Area |
| Common Legal Fee... |
$400 |
| Common Disbursements |
| Survey Certificate... |
$275 |
| Title Insurance In Lieu Of Survey Certificate... |
$150 |
| Tax Certificate... |
$25 |
| Register Land at Land Titles Office... |
$40 |
| Register Mortgage at Land Titles Office... |
$50 |
| Search of Title... |
$15 |
| Courier Charges (minimum of 5 on purchase)... |
$35 |
| Miscellaneous... |
$25 |
| Property Transfer Tax (e.g. $170,000 home)... |
$1700 |
| • tax is 1% of first $200,000 of purchase price and 2% of any balance |
| GST = |
$61 |
| Subtotal = |
$2626 |
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Other Fees
If your down payment is less than 25% of the purchase price of the home, the mortgage will require insurance from CMHC.
| Mortgage Insurance Application Fee ... |
$75 |
| CMHC appraisal fee ... |
$188 |
| There is also an insurance premium which is usually added to the mortgage. This premium ranges from .5% of the mortgage value to 3.75% depending on the size of the down payment. |
Property Tax Adjustment ...
In addition to the above costs, you may be required to have cash on hand to repay the vendors for taxes they have paid in advance (depending on possession date and how the vendors paid their taxes).Your lender may also request that you prepay a few months taxes as well. A good rule of thumb is to have enough money on hand to pay six months of taxes e.g. $170,000 home. |
$900 |
Insurance ...
You will have to arrange insurance on the property before possession. The annual rate for a basic policy is approximately. |
$250 |
| Suggested cash on hand - a minimum of ... |
$4039 |
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* These figures are an estimate only. They are subject to change and it is recommended
that you consult your lawyer for confirmation of your total costs.
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