The following is a brief summary of the costs associated with buying a home:Â
Mortgage
These may include the mortgage companies’ lawyer or notary fees, appraisal fee (if applicable) and land title registration fees.
Property Transfer Tax
This is a Provincial Government Tax that applies to all purchases of real estate and is payable on the completion date. The rate of the tax is 1% on the first $200,000 of the purchase price, 2% on the next $1,800,000 of the purchase price, and 3% of the purchase price that exceeds $2,000,0000. There are some exemptions for first-time home buyers.
Goods and Services Tax (GST)
This is a 5% tax that applies to the purchase of new construction and on the resale of accommodations that have been rented out for short term or nightly rental. The payment of the GST can be deferred if the new purchaser intends to use the accommodation for short term or nightly rental at least 90% of the time and she/he becomes a GST registrant.
Insurance
Buyers are required to arrange insurance on single family residential accommodations, and liability and contents insurance on strata-titled properties. If you purchase a strata property that has been renovated you need to ensure the renovations are insured.
Strata Fees
Strata properties (condos, townhomes, duplex, and bareland strata will have monthly strata fees. The Strata Corporation is also entitled to levy special assessments for expenses if necessary, however this needs to be approved by the owners.
Municipal Taxes
Annual property tax is due in July every year. If the property you purchase is your primary residence you can apply for the Homeowners Grant which will provide a reduction to taxes. In Squamish, there is also a District of Squamish Utility bill that covers water, sewer and garbage. It is a separate bill but comes attached to the Property Tax bill.
Mortgage
These may include the mortgage companies’ lawyer or notary fees, appraisal fee (if applicable) and land title registration fees.
Property Transfer Tax
This is a Provincial Government Tax that applies to all purchases of real estate and is payable on the completion date. The rate of the tax is 1% on the first $200,000 of the purchase price, 2% on the next $1,800,000 of the purchase price, and 3% of the purchase price that exceeds $2,000,0000. There are some exemptions for first-time home buyers.
Goods and Services Tax (GST)
This is a 5% tax that applies to the purchase of new construction and on the resale of accommodations that have been rented out for short term or nightly rental. The payment of the GST can be deferred if the new purchaser intends to use the accommodation for short term or nightly rental at least 90% of the time and she/he becomes a GST registrant.
Insurance
Buyers are required to arrange insurance on single family residential accommodations, and liability and contents insurance on strata-titled properties. If you purchase a strata property that has been renovated you need to ensure the renovations are insured.
Strata Fees
Strata properties (condos, townhomes, duplex, and bareland strata will have monthly strata fees. The Strata Corporation is also entitled to levy special assessments for expenses if necessary, however this needs to be approved by the owners.
Municipal Taxes
Annual property tax is due in July every year. If the property you purchase is your primary residence you can apply for the Homeowners Grant which will provide a reduction to taxes. In Squamish, there is also a District of Squamish Utility bill that covers water, sewer and garbage. It is a separate bill but comes attached to the Property Tax bill.