When you are ready to buy, it is wise to do some research into the additional costs associated with home buying. The following list will help you budget for your new purchase.

GST - If you buy a newly constructed home, you must pay the 6% GST. For more information, www.cra-arc.gc.ca/tax/business/topics/gst/construction/menu-e.html

Property Transfer Tax - When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. Effective for registrations after February 20, 2007, the fair market value threshold for eligible residential property under the First Time Home Buyers' Program is increased and will apply throughout the province. The new threshold will be $375,000 which is increased from $325,000 in the Capital Regional District, Fraser Valley Regional District and Greater Vancouver Regional District, and from $265,000 in all other areas of the province. A proportional exemption is provided for eligible residences that have a fair market value of up to $25,000 above the new threshold. For more information please visit: www.rev.gov.bc.ca/rpt/ptt/ptt.htm

Prepaid property taxes or utility bills - You will have to reimburse the sellers for any prepaid property taxes or utilities.

Mortgage loan insurance and application fee - If you get a high-ratio mortgage (a mortgage where you pay less than a 25% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage.

You will also have to pay an application fee. CMHC's standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.

Appraisal - Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $150 to $350.

Survey fee - Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $150 to $350.

Home Inspection fee - Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost you from $150 to $350 for a smaller house. Large houses may cost more.

Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be at least $400.

Disbursements to Land Titles Office - These fees are approximately $300. Your lawyer/notary will arrange this payment.

One of the benefits of working with a REALTOR®, is having their network and resources at at your finger tips. Before you decide to buy, call me and let's get you on the right path to homeownership.