Below you may find the major real estate related taxes and fees that are applicable to buyers at and after purchasing a new home. Please get in touch for details, exemptions, rebates, credits, and cost saving programs.
You may also contact us for a return on investment analysis.
TAXES AND FEES AT BUYING:
Property Transfer Tax:
1% on the first $200,000, 2% on the balance up to $2,000,000, 3% on the balance up to $3,000,000, and 5% on the balance. For first time home buyers and buyers of newly built homes, partial and full exemptions exist with certain requirements.
For the properties located in certain districts* in BC, an additional 20% Property Transfer Tax is charged on the purchase price to buyers, who are not Canadian citizens or permanent residents of Canada. Please contact for the exemption and refund conditions.
* Greater Vancouver Regional District, Fraser Valley Regional District, Regional District of Central Okanagan, Capital Regional District, Regional District of Nanaimo.
Goods and Services Tax (GST) for new developments:
For new developments, buyers pay 5% GST on purchase price.
If you have less than 20% down payment, you will require “mortgage default insurance”. It costs up to 4% of the mortgage amount.
Lenders usually require home buyers with a mortgage to buy “home insurance”. A typical insurance for a condo costs around $40-$50 per month.
Appraisal, survey, inspection fees:
Before your lender approves your mortgage, you may be required to have the property appraised. Sometimes your lender will cover this cost. The fee ranges from $300 to $450. It may not apply if you are purchasing a new home.
Lenders may also require a survey of the property. The fee ranges and is typically $500.
Buyer may prefer to have an home inspection, which is a report on the condition of the home and the fees range and is typically $500-$900 depending on the size of the home and the complexity of the inspection.
Closing and adjustment fees:
Buyers typically hire a lawyer or a notary public to assist with drafting documents and ensuring the title of the home is properly transferred. $800 - $1000 is charged for closing the deal. A home buyer will likely be required to reimburse the seller for any prepaid property taxes and utility bills.
TAXES AND FEES AFTER BUYING:
Annual Property Tax:
This tax is based on assessed property value, property location, and property usage. Usually ranges between 0.25%-0.50% of property assessment value depending on location. The home owner grant reduces the amount of property taxes paid each year on principal residence.
Empty Home Tax:
1% of the property value if residential property is empty for more than 6 months in a calendar year. Valid only for the properties located in the City of Vancouver, not in the other regions of Greater Vancouver Area.
Speculation and Vacancy Tax:
Paid if the residential property other than permanent residency is not rented for at least 6 months in a year. Short-term rentals for periods of less than one month do not count towards the six-month total.
Tax rate is 2% for foreign owners and satellite families, whereas 0.5% for British Colombians and other Canadian citizens or permanent residents who are not members of a satellite family. A satellite family is an individual or spousal unit where the majority of their total worldwide income for the year is not reported on a Canadian tax return.
Monthly management fee is paid to strata corporation by the owner of a condo or townhouse (even in case the property is rented). Usually in the range of 25-50 cents per sqf per month.
Rental and Property Management Fees:
If the property is rented and a third party takes care of rental and property management, you need to pay rental management commission that is half of monthly rent (paid once at renting), and property management commission that is around 7-10% of rent (paid each month).
If the property is rented, owners (both the residents and non-residents of Canada) need to file income tax. You can deduct any reasonable expenses you incur to earn rental income such as interest portion of the mortgage payment, annual property tax, strata fee, insurance, utilities, maintenance and repairs, commissions paid for rental and property management.
Above information is based on the most reliable information we could reach. Actual figures may differ. Please contact your financial adviser to get precise information.