Owen Bigland blog about two fairly sizeable expenses that homeowners
sometimes forget when purchasing a property in British Columbia. Most
people know about the HST payable on new homes but there are 2 other
substantial expenses you will need to shell out when you buy your home.
The first is Property Transfer Tax (PTT) which is 1% on the first
$200,000 and 2% on the balance. If you are a first time buyer, meet all
the requirements and your purchase price is under $425,000 you can apply
for an exemption. The second is CHHC default insurance. If you are
putting less than 20% down (High-ratio mortgage) you need to have
default coverage. If you are putting more than 20% down (Conventional
mortgage) you do not need this coverage. Default insurance is calculated
on a sliding scale based on your down payment from .5% up to 3% of your
mortgage amount.
This entry was posted on March 15th, 2012 by Owen Bigland | Posted in Video Blog