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==Be careful—there are many other costs besides the purchase price== | ==Be careful—there are many other costs besides the purchase price== | ||
There are many extra costs when you buy a house. | There are many extra costs when you buy a house. | ||
*Property purchase tax (PPT)—you may not have to pay PPT on your first home. Other exemptions also exist. For more information, call the Property Transfer Tax office of the BC government in Victoria, at 250.387.0604. Outside Victoria, call Enquiry BC at 604.660.2421 in Vancouver and 1.800.663.7867 elsewhere in BC and ask for the Property Transfer Tax office. | |||
*'''Property purchase tax (PPT)'''—you may not have to pay PPT on your [http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers first home]. [http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/first-time-home-buyers Other exemptions] also exist. For more information, call the Property Transfer Tax office of the BC government in Victoria, at 250.387.0604. Outside Victoria, call Enquiry BC at 604.660.2421 in Vancouver and 1.800.663.7867 elsewhere in BC and ask for the Property Transfer Tax office. | |||
PPT is calculated as follows: | PPT is calculated as follows: | ||
:*1% of the first $200,000 of the property’s fair market value, plus | :*1% of the first $200,000 of the property’s fair market value, plus | ||
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:*3% of amounts over $2,000,000 | :*3% of amounts over $2,000,000 | ||
*Foreign buyer’s tax of 15%—if you are not a Canadian citizen or permanent resident, you must also pay another 15% tax on property in the Greater Vancouver Regional District. There is an exemption under the BC Provincial Nominee Program (which lets high-demand foreign workers and experienced entrepreneurs become permanent residents in BC). | *'''[http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax#gvrd Foreign buyer’s tax] of 15%'''—if you are not a Canadian citizen or permanent resident, you must also pay another 15% tax on property in the Greater Vancouver Regional District. There is an [http://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/understand/additional-property-transfer-tax#exemption exemption] under the [https://www.welcomebc.ca/immigrate-to-b-c/b-c-provincial-nominee-program BC Provincial Nominee Program] (which lets high-demand foreign workers and experienced entrepreneurs become permanent residents in BC). | ||
*Goods and Services Tax (GST) of 5%—this applies to the purchase price of all newly-constructed or substantially renovated homes and to most legal fees and other costs of selling or buying a home. | |||
*Provincial Sales Tax (PST) of 7%—this applies to most legal fees and other costs of selling or buying a home. | *'''[https://www.canada.ca/en/services/taxes/gsthst.html Goods and Services Tax] (GST) of 5%'''—this applies to the purchase price of all newly-constructed or substantially renovated homes and to most legal fees and other costs of selling or buying a home. | ||
*'''[http://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst Provincial Sales Tax] (PST) of 7%'''—this applies to most legal fees and other costs of selling or buying a home. | |||
You will have to pay many thousands of dollars in taxes, legal fees, and other costs beyond the purchase price. Before you make an offer to buy a house, decide if you can afford both the purchase price plus all the other costs. | You will have to pay many thousands of dollars in taxes, legal fees, and other costs beyond the purchase price. Before you make an offer to buy a house, decide if you can afford both the purchase price plus all the other costs. | ||
==Do you need a real estate agent, or realtor? Who pays the realtor?== | ==Do you need a real estate agent, or realtor? Who pays the realtor?== | ||
You may decide to look for a house yourself or you may use a professional to help you. If you decide to use a real estate agent, pick one that you trust and who you’re comfortable with. The seller pays both real estate agents, the one for the seller and the one for the buyer. If there’s no sale, there’s usually no commission paid to the agent. If you don’t use an agent, good places to start looking for houses are local newspapers and the multiple listing website. | You may decide to look for a house yourself or you may use a professional to help you. If you decide to use a real estate agent, pick one that you trust and who you’re comfortable with. The seller pays both real estate agents, the one for the seller and the one for the buyer. If there’s no sale, there’s usually no commission paid to the agent. If you don’t use an agent, good places to start looking for houses are local newspapers and the [http://www.mls.ca/ multiple listing website]. | ||
==Your offer to buy must be in writing== | ==Your offer to buy must be in writing== | ||
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==More information== | ==More information== | ||
*Read the booklet called “[http://www.recbc.ca/consumer/buyinghome.html Buying a Home in BC Information Booklet]” prepared by the [http://www.recbc.ca/ Real Estate Council of British Columbia]. | |||
*For more information on mortgages, check script [[Mortgages and Financing a House Purchase (Script 408)|408]], called “Mortgages and Financing a House Purchase”. | |||