Costs For Buyers
In BC all buyers must pay 1% on the first $200,000 of the property value and 2% on any value over $200,000. First Time Home Buyers using the property as their principle residence may be exempt from this tax.
A New Housing exemption will apply to newly built homes or newly subdivided units priced up to $750,000, saving buyers up to $13,000; and a partial exemption will apply on newly built homes priced $750,000 to $800,000.
A new 3% PTT rate will apply to the portion of a home sale that exceeds $2 million. For homes that sell for below $2 million, the PTT will continue to apply at a rate of 1% on the first $200,000 and 2% on the balance.
First time Home Buyers click here.
Goods & Services Tax (GST)
Newly constructed homes are subject to 5% GST on the purchase price. However, if the home is under $350,000, a rebate will reduce the GST. If the price is over $350,000, the net GST to be paid increases gradually until it is a full 5% at amounts over $450,000.
GST tax also applies on the resale of accommodations which have been rented out for short-term/nightly rentals. The payment of GST can be deferred if the new owner intends to offer the property available for short-term/nightly rental for ninety percent (90%) of the time and becomes a GST registrant. Becoming a GST registrant is a relatively straightforward procedure of completing approximately four forms. Once you are a GST registrant, you are entitled to claim credits for the GST that you pay, for example, on legal fees, property management fees, hydro, cable, telephone. You are then required to charge, collect and remit GST on the nightly rentals, which in some instances may be done through your property manager. You will be required to annually file a GST Return. Please refer to a professional accountant for GST and tax advice.
Homeowners pay "strata" or "condo" fees. The Strata Corporation may also levy special assessments for extraordinary expenses, should there not be sufficient money in the contingency reserve fund. Purchasers should determine what rights they have to use the common areas such as parking stalls and lockers, if applicable.
Lending institutions require an appraisal of the property and, sometimes, a survey certificate before approving your loan; it may be your responsibility to pay the appraiser's fee and the surveyor's fee.
Fire & Liability Insurance
The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage loan before you receive any insurance proceeds. In the case of strata properties, this insurance coverage is already in place.
The lawyer or notary public will charge a fee, plus disbursements, including the Land Title Registration fee. If you are financing your purchase with a new mortgage loan, there will be a further fee and disbursements to prepare and register the mortgage documents.
Although not mandatory, it is highly recommended that you have a qualified home inspector do a thorough inspection of the property to detect deficiencies or concerns that you may not be aware of.
Tourism Whistler (TW) Fees
These are quarterly fees payable to the Tourism Whistler and apply to properties zoned for nightly rentals. The cost can be reduced if owners use the property for personal use.