The True Cost of Buying a House in BC: Full Home Buying Cost Breakdown

When buying a home in BC, the purchase price is only one part of the equation. Many buyers are surprised by the additional costs that come along with homeownership. Understanding these expenses before making an offer is crucial to ensure you’re financially prepared, avoid last-minute surprises, and still have enough for a rainy day.

Here’s a comprehensive breakdown of the costs you should anticipate before, during, and after purchasing a home in BC in 2025.

Costs to Consider During Subject Removal

Once your offer is accepted, there are key costs you'll likely face during or immediately after the subject removal process:

• Property Appraisal: Typically ranging from $300 to $450 + GST, an appraisal is often required by your lender to confirm the home’s value, especially if you’re putting less than 20% down. In some cases, your mortgage broker might cover this fee—so be sure to ask.

• Home Inspection: Costing between $400 and $800 + GST, this is an important step to assess the property’s condition. While some sellers may have done a pre-inspection, you can choose to waive the inspection, but it's usually not recommended.

• Deposit: Usually 5% of the purchase price, the deposit is paid within 24 hours of your offer being accepted. It will be held in trust and go towards your down payment at closing.

For more information on deposits, check out our [Deposits in Real Estate 101 blog post].

Closing Costs You’ll Face on Completion Day

As closing day approaches, your lawyer or notary will provide you with a statement of adjustments to outline your debits and credits. Here’s what you can expect:

• Balance of Purchase Price: This is the total purchase price minus the deposit you’ve already paid. The remainder will come from your lender in the form of your mortgage.

• Legal Fees: Legal costs for title searches and registering your property typically range from $1,300 to $2,200.

• CMHC Insurance Premium: If you’re putting less than 20% down, your mortgage will include a CMHC insurance premium, which may be rolled into your monthly payments.

• Property Transfer Tax (PTT):

  • 1% on the first $200,000
  • 2% on the portion between $200,000 and $2,000,000
  • 3% on the portion between $2,000,000 and $3,000,000
  • An additional 2% for homes valued above $3,000,000
  • First-time home buyers purchasing homes under $860,000 may be eligible for a full  or partial PTT exemption.
  
  

• Foreign Buyer PTT: An extra 20% PTT applies to foreign buyers in areas like Metro Vancouver, Fraser Valley, and Nanaimo, among others.

• Property Tax Adjustment: Depending on your move-in date, you may need to reimburse the seller for property taxes they’ve already paid.

• Utility and Strata Fee Adjustments: If the seller has prepaid utilities or strata fees, you’ll need to compensate them for amounts beyond the closing date.

• GST: A 5% GST applies to new builds, but you might be eligible for a rebate on homes under $450,000.

Post-Closing Costs

After the dust settles, you’ll face some additional costs related to moving and setting up your new home:

• Moving Expenses: Often starting around $1,000, this can vary depending on the size and distance of your move.

• New Locks: For peace of mind, changing the locks is recommended (cost varies).

• Utility Connection Fees: Some providers may charge to set up your utilities in the new home.

• Renovations & Repairs: Whether it's painting or larger upgrades, it's good to budget for immediate fixes or decor changes.

• Strata Move-in Fees: If you’re moving into a strata, there may be a move-in fee of $100 to $500, depending on the bylaws.

Key Tax Exemptions to Know

Here are three common tax exemptions that can help lower your buying costs:

1. First-Time Home Buyer Property Transfer Tax Exemption: Saves up to $8,000 for homes under $860,000.
2. Newly Built Home Exemption: For homes under $800,000, you may qualify for an exemption.
3. GST New Home Rebate: For new builds priced under $450,000, a rebate is available for the 5% GST.

Understanding these exemptions can make a significant difference, especially if you’re hovering just above or below the qualifying price points.

Conclusion

Working with a knowledgeable realtor ensures you won’t miss any important details or potential savings. From navigating the costs of buying a home to understanding tax exemptions, having expert guidance makes the entire process smoother and more manageable.

If you’re ready to start your home-buying journey or have questions about the costs, feel free to contact us today!

Discover the Exciting Inlet District: Your New Family-Friendly Community in Port Moody

 Are you ready for a fresh start in a vibrant, family-friendly community? Look no further than the Inlet District in Port Moody! This upcoming master-planned oasis is set to redefine modern living with its array of amenities, stunning natural surroundings, and convenient location. Let’s dive into what makes the Inlet District a dream come true for families seeking a new home. 

The Vision of Inlet District

Port Moody is gearing up to welcome the Inlet District with open arms. Imagine a neighbourhood where modern design meets natural beauty, offering 2587 brand-new homes designed to enhance your lifestyle. This isn’t just another housing development; it’s a community thoughtfully crafted to cater to families, emphasizing quality living amidst nature's embrace. 

Amenities Designed for Families

One of the highlights of the Inlet District is its family-centric amenities. Picture acres of green space to explore, perfect for weekend picnics or leisurely strolls. The community boasts playgrounds for children’s endless adventures and even includes a daycare facility right at your doorstep – a game-changer for busy parents looking for convenience and peace of mind. 

Convenience Redefined

Commute stress-free with the Skytrain just a quick 2-5 minute jaunt away from the Inlet District. This means easy access to downtown Vancouver or other parts of the Lower Mainland, making it a breeze for the entire family to get around. Whether it’s work, school, or leisure activities, transportation couldn’t be more convenient. 

Nature’s Embrace

Beyond convenience, the Inlet District offers a backdrop of majestic mountains, tranquil oceans, and scenic trails waiting to be explored. Imagine crafting unforgettable memories against this stunning natural canvas. From hiking to biking and everything in between, outdoor enthusiasts will find themselves at home in this picturesque setting. 

A Place to Thrive

Inlet District isn’t just a place to live; it’s a place to thrive. It’s a community where families can flourish, connect, and grow together. Whether you’re looking for a dream home, a vibrant neighbourhood, or a supportive community, the Inlet District checks all the boxes. 

Your Next Move

If you’ve been dreaming of a family-friendly community where nature meets modern living, the Inlet District in Port Moody is your answer. Embrace a lifestyle that prioritizes quality, convenience, and connection. Your dream home awaits in this exciting new development. 

Stay tuned for more updates and announcements as the Inlet District takes shape. Join us in envisioning the future of family living in Port Moody. Welcome to the Inlet District – where every day is an opportunity to thrive. 

Follow me on social media for the latest news and updates.

Discover Eagle Ridge: Your Ticket to Port Moody Lifestyle at Coquitlam Prices 

Are you dreaming of the quintessential Port Moody lifestyle but finding the real estate prices a bit daunting? Perhaps you've been scouring listings, hoping to find that perfect blend of community, convenience, and affordability. 

Look no further – Eagle Ridge is here to make your dream a reality. Situated on the border of Port Moody, Eagle Ridge is a hidden gem that offers everything you love about Port Moody living, but at a more accessible price point. Whether you're a young family just starting out or looking to downsize without sacrificing the lifestyle you crave, Eagle Ridge has something for everyone. So, what makes Eagle Ridge so special?

Let's break it down: 

Affordability Meets Luxury 

One of the most attractive aspects of Eagle Ridge is its affordability. While neighboring Port Moody commands premium prices for its coveted detached homes, Eagle Ridge offers similar housing options at a fraction of the cost. Imagine saving potentially hundreds of thousands of dollars while still enjoying all the perks of living in the area.

Prime Location 

Location is key when choosing where to call home, and Eagle Ridge delivers on all fronts. Situated just moments away from Port Moody, residents have easy access to top-rated schools, seamless transit connections, and an abundance of recreational activities. Whether you're commuting to work or exploring the great outdoors, Eagle Ridge puts you right in the heart of the action.

Community Vibes 

One of the things that sets Eagle Ridge apart is its strong sense of community. Here, neighbors become friends, and there's always a sense of camaraderie among residents. From block parties to community events, Eagle Ridge offers the perfect backdrop for creating lasting memories with your loved ones.

Nature at Your Doorstep 

Nature enthusiasts will feel right at home in Eagle Ridge. With picturesque trails, lush green spaces, and stunning views just steps away, outdoor adventures are always within reach. Whether you're hiking, biking, or simply enjoying a leisurely stroll, Eagle Ridge provides the perfect setting to connect with nature and unwind after a long day. 

Your Invitation to Explore 

If you've been searching for the perfect blend of affordability, convenience, and lifestyle, look no further than Eagle Ridge. Let me be your guide as we explore this hidden gem together. From charming neighborhoods to spacious homes, Eagle Ridge has everything you need to live your best life without breaking the bank. 

So, what are you waiting for? Take the first step towards your dream home in Eagle Ridge and discover why this pocket of paradise is quickly becoming one of the most sought-after destinations for homebuyers of all ages. 

Contact me today to schedule a viewing and embark on the journey to affordable luxury in Eagle Ridge. 

Your Port Moody lifestyle awaits!

Navigating the Nuances of Newcomers: Port Moody's Evolution

Port Moody, a serene enclave nestled between the mountains and the sea, has long been cherished by its old-school residents for its tranquility and charm. However, in recent years, the arrival of newcomers from larger, more expensive cities has sparked a range of emotions among the locals. Let’s delve deeper into the multifaceted reasons why some Port Moody residents aren’t exactly rolling out the welcome mat for these newcomers.

Industrial to Suburb: Port Moody's history is deeply rooted in its industrial past, where dense forests and bustling mills once dominated the landscape. For many long-time residents, the transformation into modern subdivisions and high-rise developments has been bittersweet. They reminisce about simpler times when the air was thick with the scent of timber rather than the hum of construction. The nostalgia for Port Moody's rustic charm runs deep, and the rapid urbanization can leave many feeling disconnected from their roots.

Higher Cost of Living: The soaring property prices in Port Moody have become a source of concern for many residents, especially those who fear being priced out of the housing market. It's undeniable that the city's desirability has contributed to the exponential increase in home values over the years. For some, the dream of owning a home in Port Moody feels increasingly out of reach. Yet, despite the financial strain, there's a magnetic pull to the city's lifestyle—a blend of natural beauty, cultural vibrancy, and convenient access to urban amenities—that continues to attract newcomers and drive up property values.

More People = More Cars: As the population of Port Moody continues to swell, so too does the volume of traffic on its streets. Despite efforts to expand roadways and improve transportation infrastructure, congestion remains a persistent challenge. The influx of cars not only tests the limits of the city's infrastructure but also strains the patience of residents navigating their daily commutes. However, with the recent expansion of the skytrain network, there's hope that alternative modes of transportation will alleviate some of the pressure on Port Moody's roads, paving the way for a more sustainable future.

Identity Change: The influx of newcomers, accompanied by the proliferation of familiar chains and franchises, has sparked a debate about the preservation of Port Moody's unique identity. Long-time residents worry that the encroachment of commercialization and urbanization will erode the character and charm that drew them to the city in the first place. There's a palpable sense of loss as beloved mom-and-pop shops are replaced by corporate giants, and cozy neighborhood haunts give way to trendy boutiques. Balancing progress with preservation is a delicate dance—one that requires careful consideration of the past, present, and future of Port Moody.

The New Demographic: Amidst the changing landscape, a new demographic emerges—one characterized by young families with children and pets. These newcomers, with an average age of 40, are drawn to Port Moody's reputation as a family-friendly community with top-notch schools, abundant green spaces, and a vibrant social scene. They bring with them a youthful energy and a desire to put down roots in a place they can call home. While their presence may be met with skepticism by some long-time residents, it also injects new life and vitality into the fabric of Port Moody, ensuring that the city continues to evolve and thrive.

In conclusion, Port Moody's evolution is a complex narrative woven from the threads of nostalgia, growth, and adaptation. While the influx of newcomers may stir mixed emotions among long-time residents, it also presents an opportunity for the community to embrace diversity, foster growth, and preserve the essence of what makes Port Moody a beloved home for all who reside within its embrace. 

What's your take on this? 

Navigating the Changing Landscape of Port Moody: A Realtor's Perspective 

In the picturesque town of Port Moody, change is as constant as the ebb and flow of the ocean tide. For longtime residents, the evolution from a quaint industrial hub to a bustling suburban oasis has been met with a mix of nostalgia and apprehension. As a local real estate expert, I've witnessed firsthand the challenges and opportunities that come with this transformation.

One of the most noticeable shifts in Port Moody has been the transition from industrial to suburban landscapes. Gone are the days of towering mills and dense forests; in their place stand modern subdivisions and high-rise villages. While some residents lament the loss of the old, others see potential for growth and development in this new era.

Of course, with progress comes a higher cost of living. Rising home prices have left many longtime residents concerned about being priced out of the market. As someone who moved to Port Moody in 2017, I've seen the value of properties skyrocket in just a few short years. Yet, despite the financial strain, there's an undeniable allure to Port Moody's lifestyle and surroundings that continues to attract newcomers.

But with more people comes more cars, and traffic congestion has become a pressing issue. While efforts to expand infrastructure are underway, it's clear that Port Moody's roads are struggling to keep pace with its growing population. However, with the recent addition of two skytrain stations, it's evident that the city is adapting to accommodate its changing demographics.

Yet, amidst these changes, there's a palpable concern about preserving Port Moody's unique identity. The influx of newcomers and familiar chains can make longtime residents feel like strangers in their own town. However, as the demographics shift to include more young families and professionals, it's clear that Port Moody's essence remains intact.

In many ways, Port Moody is a blend of Lower Lonsdale's urban energy and Deep Cove's natural charm. It's a place where old meets new, where tradition intertwines with innovation. As a realtor, I'm excited to help clients navigate the ever-changing landscape of Port Moody and find their perfect place to call home.

What are your thoughts on Port Moody's transformation? Share your insights in the comments below and let's continue the conversation. Whether you're a longtime resident or a newcomer, there's no denying that Port Moody's future is bright.Ready to explore real estate opportunities in Port Moody? 

Contact me today to get started on your journey.

Navigating Closing Costs: What Every Home Buyer Should Know

Congratulations! You've finally found the home of your dreams, and now you've got an accepted offer in place. But before you start planning the housewarming party, there's one crucial aspect you need to consider: closing costs. These are the additional fees, charges, and disbursements that you'll be responsible for on top of the purchase price of your new home. Understanding these costs upfront can help you budget accordingly and avoid any last-minute surprises on closing day.

Budgeting for Closing Costs

Closing costs typically range between 1.5% to 3% of a home’s purchase price. While this percentage can vary depending on factors such as location and specific circumstances, it's essential to have a rough estimate in mind as you prepare to finalize the purchase of your new home.

Mortgage Insurance

If your downpayment is less than 20% of your total mortgage, you'll likely need to obtain mortgage insurance. This insurance protects your lender in case you default on repaying your loan. Premiums for mortgage insurance are calculated based on the loan-to-value ratio of your mortgage and are typically rolled into your regular mortgage payment.

Appraisal, Survey, and Inspection Fees

Before finalizing your mortgage, your lender may require an appraisal, land survey, and home inspection. These assessments ensure the property's value, boundaries, and structural integrity, providing peace of mind for both you and your lender. Be prepared to cover the costs of these services, which can range from $400 to $2000 depending on the property and complexity.

Water Quality Inspection

For rural properties or homes with wells, a water quality test may be necessary to ensure the safety of your drinking water. Costs for these tests typically range from $200 to $300, depending on the type and scope of the analysis.

Taxes

For new homes or those that have undergone significant renovations, a Goods and Services Tax (GST) of 5% applies to the purchase price. Buyers can qualify for a GST rebate of up to 36% if the home’s purchase price is under $350,000. For homes valued between $350,000 and $450,000, the rebate amount gradually decreases. However, homes priced over $450,000 are not eligible for this rebate. Remember, it’s necessary to apply to receive the GST rebate.

Additionally, GST is applicable to various services involved in the home-buying process, such as appraisal, inspection, legal advice, notarization, and real estate services.

Provincial Sales Tax (PST) is generally not applicable to these services, with the exception of legal and notary services where PST may apply.

ANTI-FLIPPING TAX: EFFECTIVE JANUARY 1, 2025

Starting January 1, 2025, a new measure aims to curb home flipping and short-term speculation in the real estate market. This tax targets sales of residential properties held for less than two years. Sellers could face a tax of up to 20% on the profit generated from these sales. Specifically, properties sold within the first year will incur a 20% tax, which gradually reduces to zero for properties sold between 366 and 730 days. Certain exemptions are available under specific conditions.

Property Transfer Tax

In BC, the property transfer tax (PTT) is structured as follows: 1% on the first $200,000 of the purchase price, 2% up to $2 million, 3% on amounts between $2 million and $3 million, and 5% on any portion above $3 million.

First-time homebuyers might not have to pay the PTT for homes under $500,000. For homes priced between $500,000 and $525,000, the exemption gradually reduces and completely phases out above $525,000.

Starting April 1st, 2024, changes to the First-Time Home Buyer (FTHB) exemption will affect how Property Transfer Tax (PTT) is applied. For properties valued at less than $835,000, the PTT exemption now covers the first $500,000 of the market value. Any amount over $500,000 is subject to a 2% PTT. For instance, a property valued at $700,000 would incur PTT on $200,000, resulting in a $4,000 tax payment, allowing buyers to save $8,000 by not paying PTT on the initial $500,000.

Properties with a market value between $835,000 and $860,000 qualify for a partial exemption. Properties valued over $860,000 are not eligible for the FTHB PTT exemption.

Additionally, exemptions are available for first-time buyers of new homes priced under $1,100,000. There is a partial exemption between $1,100,000 and $1,150,000, and above that there is no exemption.

Eligibility for the exemption requires you to:

Be a Canadian citizen or permanent resident.

Have lived in BC for the 12 months preceding your purchase.

Have never owned property anywhere before.

Have not previously claimed a first-time homebuyers’ exemption.

The property you’re buying must:

- be in BC

- be used at your principal residence

- be .5 hectares or smaller

- Once you’ve purchased the property, you have to occupy the property as your principal residence for the remainder of the first year

Other Expenses

Additional closing costs may include adjustments for prepaid expenses, home insurance, title insurance, legal or notary fees, utility hook-up fees, new locks, strata fees (for condos or townhouses), realtors' commission, and moving costs. Be sure to factor these expenses into your budget to ensure a smooth closing process.

Planning for a Smooth Transition

As you prepare to close on your new home, it's essential to plan for a smooth transition. Whether you're hiring professional movers or enlisting the help of friends and family, make sure to account for moving costs and any necessary arrangements for the transfer of utilities and services.

In conclusion, understanding and budgeting for closing costs is an essential step in the home-buying process. By being prepared and informed, you can navigate the closing process with confidence and start enjoying your new home sooner. Congratulations on this exciting milestone in your homeownership journey!