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Its easy to count your available cash, but remember
that all of these cash savings cannot be used as your
down payment. There are last-minute costs such
as taxes, legal fees, appraisal fees, moving expenses
and house insurance to pay before you are finally in
your new home.
The time to budget for those end expenses is NOW.
You must be prepared to pay most, and perhaps all, of
the following closing costs.
You may want to ask us which of the
following may apply to you?
The Properties In Victoria ProfessionalsTM
Taxes & Fees
Property Purchase Tax
The British Columbia
Provincial Government imposes a property purchase tax,
which must be paid before any property can be legally
transferred to a new owner. The tax is 1% on the
first $200,000 of the property value and 2% on any value
over $200,000. Ask us about the special regulations
for first time buyers in B.C.
Goods & Services Tax
If you purchase a newly constructed home, you may be subject to a 5% GST on the purchase price. However, if the home is under $350,000, and this is your principal residence, a rebate will reduce the GST paid to approximatley 3.5% of the purchase price. If the price is over $350,000 the net GST to be paid increases gradually until it is a full 5% at amounts over $450,000.
Property Tax
If the current owners have already
paid the full years property taxes to the municipality,
you will have to reimburse them for your share of the
years taxes. Property taxes are calculated from
Jan Dec and are paid at the end of June.
Appraisal Fee
When the lending institution
requires an appraisal of the property before approving
your loan, it may be your responsibility to pay the
appraisers fee.
Survey Fee
The lending institution
may also require that a survey certificate be presented
to them. The purpose of the survey is to formally
establish the boundaries of the property and to ensure
that all buildings are within those boundaries.
If the current owner cannot provide a recent survey
certificate, it will be your responsibility to pay the
surveyors fee.
Mortgage Application Fee
Lending institutions
may charge a mortgage application fee. This application
fee may vary between lending institutions.
Mortgage Default Insurance
This type of insurance
is required on all mortgage loans in excess of 75% of
the appraised property value. Its purpose is to
insure that the lender will not lose any money
if you cannot make your mortgage payments and the value
of your property is not sufficient to repay your mortgage
debt. The insurance premium is paid to the lender
and ranges from % to 3.75% of the loan value; however,
in most cases this premium is added to the loan amount,
and paid for over the term of the loan.
Life & Disability Mortgage Insurance
At
your option, you may purchase insurance that will ensure
that your outstanding mortgage balance is paid if you
die or become disabled.
Fire & Liability Insurance
The mortgage
lender will insist that you purchase an insurance policy
which guarantees that, in the event of fire, the lender
will receive the balance owing on the mortgage loan
before you receive any insurance proceeds.
Legal Fees
The transfer of property ownership
from the seller to the buyer must be recorded in the
Land Title Office in order to protect the new owners
interests. You will probably want to engage a
lawyer or notary public to act on your behalf during
the completion of your purchase. The legal fees
for this service will include payment of a registration
fee. If you are financing your purchase with a
new mortgage loan, there will be a further fee to prepare
and register the mortgage documents.
Do you need a list of legal counselors who specialize
in real estate?
Contact Us!
the Properties In Victoria ProfessionalsTM
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Other Last-Minute Costs
Dont forget to set some money aside for:
- Home inspection fees
- Moving expenses
- Deposits required by utility companies
- Household goods: kitchen appliances,
garden equipment, garbage cans, tools, window coverings,
etc.
- Redecorating or renovations
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Come and Search With Us
Now its time to begin your informed search for that
right property. Together we will discuss and
assess your needs so that we can create an action plan,
which will lead you to your goal of obtaining the right
home or property for you. Properties in Victoria Victoria
Pacific is the right Buyers Agent for you.
Let's go look at properties
As a team we will pay attention to some of the following
areas when we are seriously interested in a property that
is for sale.
Dont be shy! If you are seriously interested
in a property we will insist that it get inspected thoroughly.
Still it may help to pay particular attention to the
following:
- What size and shape is the lot? Is it fully
serviced with sewage, water, gas and electrical lines?
- How much square feet of living space are there
available? How many rooms?
- Condition and age of the roof are there any leaks
or recent repairs? If only part of the roof
was repaired, will the rest cause trouble?
- Are there proper roof gutters and adequate downspouts.
- Are the interior walls and ceilings solid?
Drywall? Plaster? Is there any evidence
of leaks or cracks?
- Are the floors firm and level? What about
the condition of the floorboards or supports?
Does the ceiling sag?
- Is there evidence of termites or dry rot?
- What type of floors are underneath the carpeting?
- Are stairs and doorframes level and well joined?
- Is the natural lighting to your liking? Which
way does the front face north, south, east or west?
- Are the room sizes adequate for your familys needs?
Is the layout compatible with your habits?
- Is the kitchen suitable? Are there enough
outlets and spaces for appliances? What about
cabinets?
- Are storage areas and closet spaces adequate?
- What is the condition of the plumbing system?
Is it noisy? Have there been recent repairs?
What about satisfactory ventilating equipment?
Are there exhaust fans in the kitchen and bathrooms?
What type of heating system is it (forced air, gravity,
etc.)? What kind of fuel is used? Is there
a heat pump?
- Is there sufficient electrical wiring? Is
there enough power for your electrical equipment?
Are there adequate outlets in the house? What
is the fuse arrangement?
- Can the wall space be utilized to suit your needs?
Check the locations of doors and windows.
- Drainage is the property well drained and has
landscaping been done to prevent erosion?
- What is the condition of the basement and foundation?
You should check the walls and floors. Is the
floor dry? Are there hookups for a washer and
a dryer?
- What about the attic and the crawl space?
Is there evidence of leaks? Dry rot? Is
there proper ventilation and insulation? Does
the insulation meet current specifications?
- Are there severe cracks in, or excessive or uneven
settlement, of the foundation?
- How large is the garage? Is the driveway
adequate? Is there cracking or lifting and is
drainage satisfactory?
- What is the condition of the caulking on windows
and doors? What kind of storm windows are there
and what condition are they in? Do windows and
doors open and close easily?
- Does the layout flow? Does the home feel
good?
Each house is unique. Keep some notes to enable
you to remember the details later!
We will discuss these issues together once we have
walked through the home.
Contact us if there is a home that
you are interested in walking through?
the Properties In Victoria ProfessionalsTM
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Other Things To Consider
Hire A Professional Home Inspector To Give You A
Report
Please remember that it is ultimately YOUR responsibility to ensure all of your questions have
been answered to your satisfaction since it is could
potentially be your future home. What other questions
should you ask?
Is A Property Condition Disclosure Statement Available?
In British Columbia, sellers may be asked to complete
a Property Disclosure Statement in a prescribed form.
This statement provides information about the state
of the property to all potential purchasers. It
is a good idea to peruse this document carefully as
it may provide pertinent information about the condition
of a potential home.
What is the zoning on this property?
The zoning on a property is established by the local
government. Zoning sets the type of buildings
which may be built on any particular piece of property
and how those buildings may be used: single-family residential,
duplexes, multi-family residential, commercial, or industrial.
You may also wish to ask about the zoning on the surrounding
properties to determine if, for instance, a factory
or a park could suddenly appear nearby. You should
contact the municipality because they have this type
of information.
Are there any restrictive covenants?
A restrictive covenant places a specific limitation
on the owners use or occupancy of property. Such
things as a prohibited type of exterior finish, the
minimum size of the structure, or the maximum height
of the structure are only a few examples of the type
of restrictive covenant you may encounter. The
act of purchasing a property that has a restrictive
covenant compels you to abide by it.
Are there any easements?
An easement is a right or privilege one party has to
use the land of another for a special purpose.
Examples are: easements given to telephone and electric
companies to erect poles and run lines over private
property, easements given to people to drive or walk
across someone elses land and easements given to gas
and water companies to run pipelines to serve their
customers.
Is a copy of the State of Title available?
A copy of the State of Title will allow you to see
who is registered as the current owner of the property
and if there are any registered mortgages, easements,
restrictive covenants, right of ways, etc., which may
affect the use or value of the property.
How much are the property taxes?
The amount of property taxes payable will figure in
the calculation of how much money you can borrow to
finance your purchase. Ask us about the BC Homeowners Grant.
the Properties In Victoria ProfessionalsTM
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Fixtures or Chattels
Is the fireplace insert a fixture?
Things contained in a building or on the land are classified
as either fixtures or chattels.
The difference between a fixture and a chattel is very
important to you because fixtures stay with the property
when it is sold, but chattels depart with the owner.
If you see an attractive fireplace insert, a murphy
bed in the spare bedroom closet, a vacuum canister
in the utility or custom window blinds which you think
should stay, but are not certain if the seller agrees,
ASK us if it is included. NEVER ASSUME
ANYTHING. Lets include it specifically on
an offer to purchase.
the Properties In Victoria ProfessionalsTM
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