The Costs Borne By The Buyer

Here are some costs that a buyer may encounter in the process of purchasing a home:

Property Transfer Tax:
This tax is 1% on the first $200,000 and 2% on the balance. First Time Home Buyers may be exempt from this tax.


$300,000 Purchase Price

0.01 x $200,000 = $2000
0.2 x $100,000 = $2000
= $4,000 Property Transfer Tax

Legal Fees:
Your lawyer or notary will charge a fee for their service of transferring title from the Seller to the Buyer as well as disbursements to the Land Title Office. This cost is approximately $1000.

Home Inspection:
It is highly recommended to have your potential home inspected by a Certified Home Inspector. This typically can start at $300 and up depending on the size of a home.

You will need to provide a deposit upon subject removal of your purchase. This is typically 5% of the agreed purchase price and will later form part of your down payment.

Your proportionate share of Seller’s prepaid payments which include property taxes, utilities, and strata fees for the remaining year or month.

Sometimes lenders will require the home to be appraised prior to lending. This will cost about $250.

CMHC Insurance Premium:
Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with as little as 5% down payment — with interest rates comparable to those with a 20% down payment. This can range from 0.50% to 2.75% of the amount financed (up to 6.00% for self employed). This will be added onto the mortgage.

12% of the purchase price. Rebates do apply. HST is not applicable to resale homes.

All costs above are estimates only and prices will vary among different service providers and vendors. Please contact your choice of service providers for accurate costs.