Taxes and Fees Associated With Purchasing A Home In BC
Did you know it is free to work with a Realtor when purchasing a home?
That’s right you do not pay any commission.
Real Estate Taxes in British Columbia, Canada
The following is a basic outline of Real Estate taxes you can expect to pay in British Columbia:
Property Transfer Tax:
1% on the first $200,000,
2% on the portion of the fair market value greater than $200,000 and up to and including $2,000,000,
3% on the portion of the fair market value greater than $2,000,000, and
if the property is residential, a further 2% on the portion of the fair market value greater than $3,000,000 (effective February 21, 2018).If the property is classified as residential and farm, or is residential mixed class (such as residential and commercial), you pay the further 2% tax on only the residential portion of the property. Use our Property Transfer Tax Calculator for Residential Property over $3,000,000 to help you determine the tax amount owing.
The Property Transfer Tax Act as amended imposes an additional Property Transfer Tax of 20% of the fair market value of any residential property being purchased by a Foreign Buyer/ Foreign Entity.
NEW HOME EXEMPTION: Buyers of new homes may be exempt from paying the PTT if the purchase price is less than $750,000. There is also a proportional exemption for homes priced between $750,000 and $800,000.
FIRST-TIME HOME BUYER EXEMPTION: Qualifying first-time home buyers may be exempt from paying the PTT if the purchase price is less than $500,000. There is also a proportional exemption for homes priced between $500,000 – $525,000.
The property transfer tax is 3% on homes worth over $2 million.
Capital Gains Tax: (Will not affect you if on your principle residence)
Good and Service Tax (GST): 5% GST is charge on newly constructed homes. New home buyers of homes under $350,000 can apply for a partial rebate of this tax as long as the home will be the purchaser’s primary residence. Homes between $350,000 and $450,000 CDN have a smaller rebate that can be applied for and no rebates are available over $450,000 CDN.
Property Tax: This is an annual fee levied with local communities. There are many different amounts of tax you may have to pay depending on the area. We can help you determine how much you will have to pay when viewing the homes you are interested in purchasing. Different homes in different areas will all have different taxes and will be taxed appropriately in correlation of the property’s assessment value.
Miscellaneous Fees on BC Real Estate
If you purchasing a property there is absolutely no fee to obtain a Realtor. If you are looking to sell a home the commission we charge straight across the board for all clients is 7% on the first $100,000 and 5% on the remaining balance. Just under half of that commission will be paid out the Buyer’s Realtor and the commission at time depending on the client can be negotiable.
Lawyers in BC, Canada will review the offer of purchase, search the title, draw up the mortgage documents and tend to the closing dates. Typical Legal Fees for these services are between $500-$1600 CDN.
Home Inspection Fees:
This protects you from purchasing a home with defects not found by the untrained eye. This typically will cost anywhere from $450-$900 CDN depending on the size and the condition of the home. Strata Fees, Service Charges for utility hook ups & Property Insurance may also be applied to the total charges of purchasing your property.
Paid by the seller and can range from $300-$1,000 CDN depending on the complexity of the sale.
GST (IF APPLICABLE):
New homes have a 5% GST if you are not a first time home buyer who qualifies for the grant.
Taxes vary based on the funds the city needs for services each year and your property assessment.
Pricing can vary depending on plans.
Fees for hydro, gas, water and sewer, cable and phone connections.
Fees can vary depending on unit size, age, complex, etc. (Only applicable for strata units.)
Contact Ryan Taylor from Royal LePage Nanaimo Realty for neighbourhood specific expertise.