BCMortgage.ca Selected Finalist for the CMP Canadian Mortgage Awards

We are pleased and honored to be selected as a finalist for the CMP Canadian Mortgage Awards under the category MGIC Award for Best Internet Presence. This category recognizes mortgage websites that have harnessed the internet to provide customers with practical, effective and easily accessible facilities to help streamline the mortgage process. The winner will be announced on February 29 at the Canadian Mortgage Award ceremony in Toronto.

The selection is a recognition of our efforts to provide consumers with online, in-depth information on mortgage and home buying.

What are the closing costs when purchasing a home?

Most lenders will ask you to show proof that you have the funds for closing costs. As you can imagine, the last thing a lender (and mortgage broker) would like to happen is that you go to your lawyers to close and don’t have enough money. Lenders require proof that you have at least 1.5% of the purchase price to cover closing costs. This is just a rule of thumb. At the time of approving your mortgage, lenders will not know exactly how much the final costs will be since these are calculated by your solicitor.

The largest closing costs is BC’s Property Purchase Tax (PPT). This tax is equivalent to 1% of the first $200,000 and 2% of the amount over $200,000. If you’re purchasing a property for $350,000, the PPT would be $5,000. If you are a first time home buyer, you could be exempt from this requirement.

Other costs include:

1. Legal fees - $650 - $800 typically
2. Fixed disbursements - $100 - $250
3. Form F ($15-25)
4. Insurance Binder ($25 - 35)
5. Tax Certificate from City Hall ($20-50)
6. Move In Fees ($50 - 250)
7. Adjustments for Tax payments and Strata fees - Pro-rated amount depending on when your transaction closes.

Goods & Services Tax (GST) - If you are purchasing newly built property, you will have to pay GST. Although you can pay this separately, most people add the GST to the mortgage amount. For lower cost properties, you can get a rebate on GST.

To learn more about closing costs, click on Bell Alliance’s Buyer’s Guide.

Should you have your home inspected?

A home is arguably life’s largest and most important purchase. If you are looking for a home, consider getting a pre-purchase inspection of the property you intend to buy.

A home inspection is a visual examination of the property to determine the overall condition of the home. In the process, the inspector should be checking all major components (roofs, ceilings, walls, floors, foundations, crawl spaces, attics, retaining walls, etc.) and systems (electrical, heating, plumbing, drainage, exterior weather proofing, etc.). The results of the inspection should be provided to the purchaser in written form, in detail, generally within 24 hours of the inspection.

A pre-purchase home inspection can add peace of mind and make a difficult decision much easier. It may indicate that the home needs major structural repairs which can be factored into your buying decision. A home inspection helps remove a number of unknowns and increases the likelihood of a successful purchase

You should be aware that in British Columbia there is no licensing in place for home inspectors. In actuality, anyone can open up a home inspection business without any prior training or experience. In looking for a home inspector, you need can start by visiting the two major home inspection associations in BC - www.bcipi.net and www.cahpi.bc.ca. Be sure to ask your inspector whether you will be getting a written report; whether you will be allowed to attend the inspection; whether they have Errors and Omissions (E&O) Insurance; and how long they intend to be at the property.

Lastly, be wary if your inspector was referred to you by your realtor. Your realtor should offer you a choice of 3-4 home inspectors to choose from so as to avoid any conflict of interest.