Tips For Residential Buyers
Tip 1
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.
Tip 2
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.
Tip 3
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.
Tip 4
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.
Tip 5
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.
Tip 6
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.
Tip 7
Don't forget to put a few extra dollars aside for drapes, paint and wallpaper.