When you’re buying your first home, it’s easy to focus almost entirely on one number: the down payment.But the down payment is only part of the cash you’ll need.There are a surprising number of expenses that can show up before, during and immediately after closing — and first-time buyers are often caught off guard because they’ve never gone through the process before.Here are some of the big ones to keep on your radar:
Property Transfer Tax (PTT)
This can be one of the biggest closing costs in BC. The good news is that qualifying first-time buyers may be eligible for a full or partial PTT exemption, depending on the home's value.
This can be one of the biggest closing costs in BC. The good news is that qualifying first-time buyers may be eligible for a full or partial PTT exemption, depending on the home's value.
Legal fees & disbursements
Your lawyer or notary handles the legal side of transferring the property, registering your mortgage and making sure everything is properly completed.
Your lawyer or notary handles the legal side of transferring the property, registering your mortgage and making sure everything is properly completed.
Home inspection
Especially for a resale home, a professional inspection can uncover issues you may not spot during a showing. It's another cost to budget for before you get the keys.
Especially for a resale home, a professional inspection can uncover issues you may not spot during a showing. It's another cost to budget for before you get the keys.
Appraisal
Your lender may require an appraisal to confirm the property's value. Sometimes the lender covers it, but buyers shouldn't automatically assume that.
Your lender may require an appraisal to confirm the property's value. Sometimes the lender covers it, but buyers shouldn't automatically assume that.
Title insurance
This protects against certain title-related risks and is commonly part of the closing process.
This protects against certain title-related risks and is commonly part of the closing process.
Property tax & other adjustments
You may need to reimburse the seller for property taxes or other expenses they've already paid beyond your closing date.
You may need to reimburse the seller for property taxes or other expenses they've already paid beyond your closing date.
Mortgage costs
If you're putting less than 20% down, mortgage default insurance can apply. And remember: even when the insurance premium is added to the mortgage, there can still be other costs associated with getting your financing in place.
If you're putting less than 20% down, mortgage default insurance can apply. And remember: even when the insurance premium is added to the mortgage, there can still be other costs associated with getting your financing in place.
The “we just bought a house” expenses
This is the category nobody puts on the spreadsheet: moving trucks, utility connections, new locks, blinds, appliances, furniture, paint and that first unexpected repair. And then there's strata if you're buying a condo or townhome — monthly strata fees, potential special levies and moving/booking fees are all worth understanding before you buy.
This is the category nobody puts on the spreadsheet: moving trucks, utility connections, new locks, blinds, appliances, furniture, paint and that first unexpected repair. And then there's strata if you're buying a condo or townhome — monthly strata fees, potential special levies and moving/booking fees are all worth understanding before you buy.
