Closing costs to the sellers
Notary Fees and Expenses:
to execution of documents.
clearing title, including:
fees charge by encumbrance holders,
Gain ( if applicable)
Closing costs to the
Notary Fees and Expenses (attending
to execution of documents)
2. Property Appraisal Fee
3.Land Survey ( if applicable)
4.Property Purchase Tax ( Property Transfer Tax)
5.Good and Services Tax
6.CMHC or Genworth
Premiums ( non conventional mortgage)
7.Foreign Buyers Tax ( non residence only) 15%
Tax ( Property Purchase Tax)
The Property Purchase Tax
in the Province of British Columbia is 1% of the first $ 200,000 and 2% of
the balance for example if a property sells for $ 500,000 the buyer pays $
8,000 in tax( $ 200,000 X 1% = $ 2000 + $ 300,000 X 2% =$ 6000 )however
the First Time Home Buyers who buy properties under $ 425,000 might be
qualified for total exemption and properties between $ 425,000 and $
450,000 might be partially exempted ,
The amount of tax you pay is based on the fair market value of the
land and improvements (e.g. buildings) on the date of registration
unless you purchase a pre-sold strata unit. The tax is charged at a
1% on the first $200,000,
2% on the portion of the fair market value greater than $200,000
and up to and including $2,000,000, and
3% on the portion of the fair market value greater than
For example, if the fair market value of a property is $450,000, the
tax paid is $7,000.
If you’re a foreign entity
or taxable trustee and the
residential property is located in the Greater Vancouver Regional
District, you also pay the 15% additional
property transfer tax on
the fair market value of your proportionate share. Your proportionate
share is the percentage of interest you are registering on title with
the Land Title Office.
What are the General Requirements to Qualify for Homeowner Mortgage
The home is located in Canada.
For CMHC-insured mortgage loans, the maximum purchase price or
as-improved property value must be below $1,000,000.
You will typically have a minimum down payment starting at 5%.
For a purchase price of $500,000 or less, the minimum down
payment is 5%. When the purchase price is above $500,000, the
minimum down payment is 5% for the first $500,000 and 10% for
the remaining portion.
Normally, the minimum down payment comes from your own
resources. However, a gift of a down payment from an immediate
relative is acceptable for dwellings of 1 to 4 units. For
eligible borrowers, additional sources of down payment, such as
lender incentives and borrowed funds, are also permitted. Check
with your lender for qualifying criteria and availability.
Your total monthly housing costs, including Principal, Interest,
property Taxes, Heating (P.I.T.H.), the annual site lease in the
case of leasehold tenure and 50% of applicable condominium fees,
shouldn’t represent more than 32% of your gross household income
(Gross Debt Service (GDS) ratio). Use the GDS
form to calculate
how much you can afford in housing costs to be eligible.
Your total debt load shouldn’t be more than 40% of your gross
household income. The Total Debt Service (TDS) ratio is your
P.I.T.H. + the annual site lease in the case of leasehold tenure
and 50% of condominium fees (if applicable) + payments on all
other debt / gross annual household income. Add up your costs
and determine your Total Debt Service ratio using the TDS
You also need to think about closing costs (for example, legal
and land transfer fees) equivalent to 1.5% to 4% of the purchase
price. Many first-time buyers are surprised by these costs. That
is why, when qualifying for CMHC’s Mortgage Loan Insurance, ourHome
Purchase Cost Estimate worksheet form will
help you calculate your total homebuying costs.
Closing costs include but are not limited to one-time items such
as lawyer fees, GST and PST as applicable, land transfer tax if
applicable, adjustments, etc., to allow you to complete the
Other requirements may apply and are subject to change. For
details, please contact your lender or mortgage broker.
How Much Does CMHC Mortgage Loan Insurance Cost?
To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance
premium. Typically, your lender will pass these costs on to
you. Your lender will give you the exact price when you apply for a
The CMHC Mortgage Loan Insurance premium is calculated as a
percentage of the loan and is based on the size of your down
payment. The higher the percentage of the total house price/value
that you borrow, the higher percentage you will pay in insurance
Remember: without mortgage insurance you may avoid the insurance
premium but you’ll typically pay much higher interest rates and
additional administrative fees. At the end of the day, for the vast
majority of borrowers, the cost of CMHC Mortgage Loan Insurance is
more than fully offset by the savings achieved.
Up to 25% premium refund may be available when CMHC Mortgage Loan
Insurance is used to finance an Energy-Efficient
Premium on Total Loan
Premium on Increase to
Loan Amount for Portability
|Up to and
|Up to and
|Up to and
|Up to and
|Up to and
|Up to and
|90.01% to 95%
Non-Traditional Down Payment**
Premiums in Manitoba, Ontario and Quebec are subject to provincial
sales tax. The provincial sales tax cannot be added to the loan
** Down Payment Requirements — Traditional sources of down payment
include: Applicant’s savings, RRSP withdrawal, funds borrowed
against proven assets, sweat equity (<50% of min. required equity),
land unencumbered, proceeds from sale of another property,
non-repayable gift from immediate relative, equity grant
(non-repayable grant from federal, provincial or municipal agency).
Non-traditional sources of down payment include: Any source that is
arm’s length to and not tied to the purchase or sale of the
property, such as borrowed funds, gifts and 100% sweat equity.