Closing Costs in Whistler
The Closing Costs
It’s easy to count your available cash, but remember that all of these cash savings cannot be used as your down-payment. There are last-minute costs such as taxes, legal fees, appraisal fees, moving expenses, and house insurance to pay before you are finally in your new home. The time to budget for those “end” expenses is now. You must be prepared to pay most, and perhaps all, of the following closing costs.
Property Transfer Tax
The British Columbia Provincial Government imposes a property transfer tax which must be paid before any property can be legally transferred to a new owner. The tax is 1% on the first $200,000 of the property value and 2% on any value over $200,000. Some buyers may be exempt from this tax, so contact the Property Transfer Tax office in Victoria to be sure 250-387-0604 or their website:
Goods and Service Tax
If you purchase a newly constructed home, you will be subject to 5% GST on the purchase price. However, a rebate is available and will reduce the GST paid for more information please refer to web site:
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 buyer 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 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.
If the current owners have already paid the full year’s property taxes to the municipality, you will have to reimburse them for your share of the year’s taxes.
Purchasers will be responsible for paying monthly maintenance charges.
The Strata Corporation is also entitled to 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.
Whistler Resort Association Fees or Tourism Whistler Fees
These are yearly fees payable to the Tourism Whistler and are calculated based on the number of bed units (one bedroom equals two bed units) present in the accommodations, and is dependent on the use of the property. In some properties if you will be using the property for only personal use and not have it available for rental more than 14 days per year, you may file a Declaration with the Whistler Resort Association to pay a lower rate of fees. The lower rate of fees is not available to fractional interest (quarter interest) or properties that are subject to a phase one covenant in the town center.
For more detailed information about bed units contact Tourism Whistler at (604) 932-3928.
When the lending institution requires an appraisal of the property before approving your loan, it may be your responsibility to pay the appraiser’s fee.
The lending institution may also require that a survey certificate be presented to them. The purpose of survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries. Note: Lending institutions may ask for either a building location survey, which establishes where a building is located on a property, or a monumental survey, which establishes the actual boundaries of a property. If the current owner cannot provide a recent survey certificate, if will be your responsibility to pay the surveyor’s fee.
Life & Disability Mortgage Insurance
At your option, you may purchase insurance which will ensure that your outstanding mortgage balance is paid if you die or become disabled.
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.
The transfer of property ownership from the seller to the buyer must be recorded in the Land Title Office in order to protect the new owner’s interests.
You will probably want to engage a lawyer or notary public to act on your behalf during the completion of your purchase. The lawyer or notary public will charge a fee for this service, 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.
Other last-minute costs you shouldn’t forget to set some money aside for:
- moving expenses
- deposits required by utility companies
- household goods such as kitchen appliances, garden equipment, garbage cans, tools, window coverings, etc. redecorating or renovations