BUYING VERNON REAL ESTATE

Pre-approved mortgages are not required, however, they do offer specific advantages for improving your position as a buyer. Mortgage pre-approval can define your budget, strengthens your standing with the seller by confirming your interest, and reduces the time between purchase agreement and closing,

Yes. Real estate is one of the most significant investments you can make, so you should have as much information as possible before making your buying decision. The cost of home inspections usually falls on the buyer, but it is tough to put a price on peace of mind. Make sure your inspection covers the following areas at least: Structural, environmental hazards, roof, EMP (electrical, mechanical, plumbing), and termite/wood damage.

Titles insurance falls into two categories: Lender’s title insurance & Owner’s title policy. The “Title” refers to the right to own a piece of property.

Lender’s title insurance is required by most banks when applying for a mortgage, as it covers the balance borrowed, protecting the banking institution from potential losses.

Owner’s title policies, commonly known as residential insurance, protect owners from the various factors that could stop you from selling your property, such as lawsuits, fraud, transactional errors.

Title insurance is only paid once, unlike most other insurance premiums, and the cost depends on several factors including, but not limited to, location, mortgage type, property type, and property value.

Home insurance, hazard insurance, and homeowners insurance are different names for insurance that covers private homes/property. Policies cover losses to the home, contents, personal possessions, and more. The depth of coverage varies depending on the policy. For example, a standard coverage policy might only insure your personal property and land value, while an extensive all-risk policy would insure against essentially everything from natural disasters to costs incurred by blocked gutters.

Partial GST New Housing Rebate: Property purchases between $350,000 and $450,000 have partial rebates at a much lower amount. For homes valued between $350,000.00 and $450,000.00, the rebate is gradually reduced and is calculated by using the following formula: $6,300 x [$450,000 – the purchase price] / $100,000

Homes over $450,000 receive no GST New Home Rebate at all and are subject to paying the full 5% GST on the new home purchase.

The Buyer is responsible for paying transfer fees as prescribed by the Property Transfer Act of BC amounting to a rate of 1% on the first $200,000 of the purchase price and 2% on the remainder up to and including $2 million. The PTT is 3% on amounts greater than $2 million. If the property is residential, a further 2% PTT is payable on the portion greater than $3 million.

The First Time Home Buyers’ program reduces or eliminates the amount of property transfer tax you pay when you purchase your first home.

The newly built home exemption reduces or eliminates the amount of property transfer tax you pay when you purchase a newly built home.

Some of the costs to consider when buying a home include:

• Lawyer or notary fees and expenses
• Searching title
• Drafting documents
• Land title registration fees
• Survey certificate (if required)
• Cost of mortgage, including
• Mortgage company’s lawyer / notary
• Appraisal (if applicable)
• Land title registration fees
• Fire insurance premium
• Sales tax (if applicable)
• Property transfer tax, and
• Goods and services tax (if applicable)