Tips For Residential Buyers
Generally, unless you qualify as a First-Time Buyer, you are required to pay to the Provincial Government the Property Transfer Tax. Currently, this tax is calculated as follows:
- 1% on the first $200,000 of the purchase price; and
- 2% on any amount over $200,000.
If you are buying a new home and the GST is not included in the purchase price, you will have to budget for the tax. Currently the amount of GST payable is calculated as follows:
- Purchase Price X 7% = GST
- GST x 36% = Rebate
- GST - Rebate = GST Payable
For example, if you purchase your home for $200,000, the GST is $14,000, the rebate is $5,040 and the GST payable is $8,960.
Just because you have never owned a home before does not necessarily mean you will qualify for the Property Purchase Tax exemption. There are several other requirements. Ask your lawyer for the details.
Ask your lender if they require a surveyor's certificate of the property you are purchasing. For this item you should budget approximately $295.00.
When buying an older home, you should have a qualified home inspector view the home and provide you with a written home inspection report prior to purchasing. The cost for this service is approximately $275.00 - $500.00.
Fire and liability insurance are a must for your new home. If you don't already deal with an insurance agent, you should shop around for the best coverage at the best rates.
Don't forget to put a few extra dollars aside for drapes, paint and wallpaper.