The costs of buying your first home in Vancouver, beyond the down payment

Almost everyone saves hard for the down payment, then gets surprised by the other costs at the finish line. None of these are huge on their own, but together they add up, and knowing them early means no scrambling later. Here is what to budget for besides the down payment when you buy in Greater Vancouver.

Before you get the keys

The deposit

When your offer is accepted you put down a deposit, usually around five percent of the price, within a day or two. It is not an extra cost, it counts toward your down payment, but it does need to be ready as a draft or certified cheque fast. Have it lined up before you start writing offers.

Home inspection

A good inspection runs roughly 500 to 700 dollars, and it is money well spent. It is the difference between buying with open eyes and buying on hope. I always recommend one, especially on older homes.

Property transfer tax

This is the big one people forget. British Columbia charges a property transfer tax of one percent on the first 200,000 dollars and two percent on the rest, so on an 800,000 dollar home that is 14,000 dollars. The good news for first-time buyers: there is a provincial exemption that can reduce or eliminate it if you qualify. We will check whether you do before you make an offer.

Legal and closing fees

A lawyer or notary handles the paperwork and title transfer, typically 1,000 to 1,800 dollars including disbursements. There are also small adjustments for things like prepaid property taxes the seller has already covered.

The ongoing costs after you move in

• Property taxes, paid yearly to your municipality.
• Home insurance, required by your lender.
• Strata fees, if you are buying a condo or townhouse.
• Utilities and maintenance, which a first place always seems to need.

A rough rule of thumb

Set aside two to four percent of the purchase price for closing costs on top of your down payment, then check the first-time buyer exemptions that might bring that down. Every situation is a little different, which is exactly the kind of thing I am happy to walk through with you, no pressure and no obligation.

This article is general information, not financial, legal, or tax advice. Tax rates, exemptions, and thresholds change and depend on your circumstances. Confirm the current details with your lawyer, notary, mortgage professional, or the Government of British Columbia before making any decision.