Costs to Expect When Buying a Home in Vancouver

Buying a home involves more than saving for your down payment and figuring out your monthly mortgage payment. There are several other costs that can come up before, during and after your purchase, and knowing about them ahead of time makes the whole process much easier to plan for.

Some costs apply to almost every purchase, while others depend on the property, your financing and whether you're buying a resale home or new construction.

Here are some of the expenses I discuss with my buyers when we're preparing for a purchase in Vancouver.

The Deposit

The deposit is different from your down payment.

In a typical resale purchase, the deposit is paid according to the terms of the Contract of Purchase and Sale and forms part of the purchase price on completion.

It's important to have these funds accessible when you're preparing to make an offer. The amount and timing aren't something you want to figure out after you've already negotiated an accepted offer.

Home Inspection

A professional home inspection is an important part of due diligence for many buyers.

The cost will vary depending on the type and size of the property and the scope of the inspection.

For condo buyers, an inspection is only one piece of the due-diligence process. Reviewing the strata documents, depreciation report, Form B, minutes, financial statements, bylaws and other available records can be equally important because an inspector is generally assessing the strata lot and accessible physical components—not the financial and governance health of the strata corporation.

Appraisal

Your lender may require an appraisal to confirm the property's value before advancing the mortgage.

Sometimes the lender absorbs this cost and sometimes it is charged to the buyer, so it's worth asking your mortgage broker or lender about it in advance.

Property Transfer Tax

BC Property Transfer Tax is one of the larger closing costs buyers need to consider.

The amount depends on the property's fair market value, and exemptions or reductions may be available to qualifying buyers in certain circumstances, including some first-time home buyers and purchasers of qualifying newly built homes.

Because the rules and thresholds can change, I recommend confirming the current amount and any potential exemption as part of your purchase planning rather than relying on an old online estimate.

GST and New Construction

If you're purchasing a newly constructed home, GST may apply.

This becomes particularly important with presales because you need to understand whether the advertised purchase price includes or excludes GST and whether you may qualify for any available rebate.

It's something I encourage buyers to clarify before signing a presale contract, not shortly before completion.

Legal or Notary Fees

A BC lawyer or notary handles the conveyancing required to transfer the property into your name and complete the purchase.

Your final bill can also include disbursements and other charges associated with the transaction, so ask for an estimate rather than budgeting for the professional fee alone.

Home Insurance

Your lender will generally require appropriate property insurance to be in place before mortgage funds are advanced.

For strata properties, the strata corporation carries insurance for the building and common property, but owners still need to consider their own coverage, including contents, improvements and other appropriate coverage.

Adjustments at Closing

There are also financial adjustments made at completion.

For example, if the seller has already paid certain property expenses covering a period after your completion date, your portion may be adjusted on the statement of adjustments prepared for closing.

Your lawyer or notary will calculate these amounts.

Moving and Immediate Home Expenses

Then there are the costs that are easy to forget when you're focused on the purchase itself:

Moving, utility setup, new furniture, painting, repairs and renovations can add up quickly.

If you're buying a strata property, you'll also want to account for monthly strata fees—and understand what those fees actually include.

Plan the Costs Before You Start Shopping

One of the reasons I like buyers to speak with a mortgage professional early is that your purchase price isn't the only number that matters.

Understanding your available cash, down payment, closing costs and likely post-purchase expenses gives you a much clearer idea of what you're comfortable spending.

And when we find the right property, you can make decisions based on numbers we've already considered rather than trying to work everything out under the pressure of an offer.

Planning to Buy a Home?

The costs involved in buying a home can vary depending on the property and your individual circumstances. You may also qualify for exemptions or rebates that can make a meaningful difference to your overall costs.

If you’re thinking about buying and would like to discuss your plans, the expenses to prepare for, and what exemptions or rebates may be available to you, fill out the form below and I’ll be in touch.

LET’S TALK ABOUT YOUR HOME PURCHASE