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Top 25 Real Estate Agents in Vancouver West,Downtown Vancouver and West Vancouver. Buy & Sell residential homes, property management, pre-sale and more.

Vancouver Home Buying FAQ

As a home buying agent, or buyers agent, we came across a lot of home buying questions asked by home buyers. We list some of them below for your quick reference if you are thinking about buy home in Vancouver.

How does owning a home compare to renting?

Typically the rent you pay increases at roughly the rate of inflation. This means your rental costs never decrease and you can’t recover any portion of your rent once you have paid it to your landlord. When you buy a home, your equity increases with each mortgage payment made and grows until you own your home. Typically you can also recover improvement and maintenance costs when you sell the home since you will see an increase in sales price.

How much of a down payment do I need? I want to save as much of a down payment as possible.

Although there are lenders who will give you a mortgage with no money or just five per cent (5%) down, it benefits you if you have at least a 20 per cent down payment. The government requires mortgage insurance for any down payment of less than 20 per cent. As new immigrants, buyers usually have to put 30% down payment.

Are there other costs associated with buying a home?

Yes. It all adds up. Here are some typical closing costs as follows:

  • The deposit: when you make an offer to purchase or when you remove subjects, you must place a deposit, which could be as much as 5% of the purchase price. On a $500,000 home: $25,000.
  • The home inspection: you and your financial institution will likely want to have a professional home inspection. This may cost $200 or more.
  • Legal fees/notary public fees for conveyance and related: $800 or more. The Property Transfer Tax: this is a government tax payable when you register title, unless you are an eligible first-time buyer. The tax is 1% of the first $200,000 and 2% of the remainder.
  • Property insurance: House: $500 or more. Apartment: Basic insurance is included in strata fee.
  • Mortgage insurance: if your down payment is less than 20% your financial institution will need mortgage loan insurance. You will be required to pay the premium.
  • The property appraisal: your financial institution may require a property appraisal to estimate the value of the home. $500 or more. However, many financial institutions will pay appraisals for clients.