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.