LISTING INFO

Presented by Tyler Becker & Bernard Deschenes

How to Buy Real Estate

As your Realtor I will:

• Help you determine the type of property you need and can afford.
• Help you find available properties and make appointments to view them.
• Advise you about the market condition and provide information about the community.
• Explain the forms used in a real estate transaction and help you prepare an offer to purchase.
• Present your offer to the seller and negotiate on your behalf.
• Recommend other professionals, such as certified home inspectors, lawyers, notaries, mortgage brokers, and so on.
• Help you understand “agency” relationships in real estate.

Typical closing expenses

Property Transfer Tax
The Property Transfer Tax is a one time tax paid to the Provincial Government by purchasers of real estate.  The amount of the Property Transfer Tax is 1% on the first $200,000 and 2% on the amount over $200,000.  This amount is paid upon closing.

Appraisal Fee
Most lending institutions require an appraiser report confirming the purchase price reflects fair market value. Costs range from $150 to $500 depending on the value and geographical location of the property.

Legal Fees
Registration of mortgage/Conveyance/Disbursements. Starting at approximately $735 (taxes not included)

Home Inspection
An independent professional will inspect the home for structural/mechanical defiance’s. $350 and up (not a lending institution requirement)

Property Site Survey
Determines layout of structural dwelling in relation to the property lines. Prices start at $250. (May be obtained from seller). Sometimes the lender will allow title insurance to be placed instead of a survey. This is generally around $150 plus taxes

Tax Adjustments
Annual property taxes may have been repaid by the seller and will have to be reimbursed ( based on completion date)

Insurance
Lending Institutions will request adequate fire insurance be purchased to insure their security.

Rule of Thumb
The amount needed for closing typically works out to 1.5% of the purchase price.
 

First time buyers

Property Purchase Tax Exemption
To qualify for an exemption to the Property Purchase as a First Time Home Buyer, the following
criteria must be met:

• Purchaser must never have owned an interest in a principal residence anywhere in the world at any time;
• Purchaser must be a citizen of or a permanent resident of Canada and have resided in B.C. for at least one year prior to the purchase or have filed two income tax returns as a British Columbia resident within the last 6 years;

Goods and services tax rebate

GST of 7% is payable on the purchase of any new home or any home that has been substantially renovated.  A Buyer may be entitled to a GST rebate of 4.48% of the 7% tax if the Buyer or a relation of the Buyer will be occupying the home as there permanent resident.  The full GST rebate is available only on residential properties priced $350,000 or less.  Buyers of new or substantially renovated residential properties priced between $350,000 and $450,000 may be entitled to a gradually reduced rebate that is determined by the purchase price of the property.  Buyers of new or substantially renovated residential properties sold at $450,000 or more are not eligible for the rebate.

Your Guide to Buying in Kamloops

 Avoid 9 critical mistakes that could cost you thousands of dollars when buying your home!

1. Avoid “low-balling” your initial offer, if the house is prices right as vendors tend to give less of a counter offer (closer to list price), if they feel insulted. Understand the current market value of the home, and comparable SOLDS.
   
   
2. A pre-approved mortgage can be done for 120 days for FREE.
   As well, you can negotiate your mortgage rate usually between 0.5-1% off the posted rates with your lender. Call  Stephanie @  “Meridian Mortgage” (250) 374-3010
   
   
3. Have your realtor arrange a home inspection with a certified house inspection service of your choice. The costs will be approximately $250.00 to $400.00 plus GST depending on the size of the property. This could be your best money spent.
   
   
4. Avoid buying the most expensive home on the street. The most advantageous situation is to purchase the worst home in a good area, rather than the best house in the worst area. “Location, Location, Location” is true!
   
   
5. When you have a down payment that is almost 25% it is usually less expensive to arrange a first and second mortgage and save on CMHC insurance fees.
   
   
6. On your mortgage, you will save the most money if you opt for an accelerated BI-weekly payment plan, or if you double up one payment per year. This will shorten your amortization periods by over 6 years!
   
7. Use your tax credits to the best advantage by placing up to $20,000.00 per person of your down payment in a short term RRSP to be held for at least 90 days, or until closing.
   
   
8. Try and stretch to the maximum you can afford, therefore you will not have to move as soon. You will save $$ on:
   • Property Transfer Tax
   • Legal Fees
   • Mortgage & Discharge Fees
   • Real Estate Fees
     
     
9. Be sure to check into your lawyers fees (separate from disbursements), I will be able to refer you to reliable professionals.