Buying a Home in Nanaimo

Just about all the information you need about the home-buying process in general can be found in an excellent pdf document put out by the Real Estate Council of British Columbia. (www.recbc.ca/pdf/Buyinghome.pdf) One thing that is crucial for buyers to know is what the whole transaction is going to cost, above and beyond the selling price of the home.

Your REALTOR’s commission is most often paid by the seller. The usual practice is for the listing agent to charge a certain commission, and then split that with the buyer’s agent. Exceptions could occur (i.e. you would be responsible for paying some commission) in circumstances in which the listing agent charged a low rate of commission or had an unusual split, or when you were paying a fee for service, which could be the case in a private sale for example. In all of these situations, you would have been informed and have given your consent to the arrangements before the purchase was concluded.

You will be required to pay property transfer tax, which amounts to 1% on the first $200,000 and 2% on anything above that.

If you are purchasing a newly-constructed home, you will have to pay Goods and Services Tax. This one is a bit tricky to calculate. Although GST is a usually a standard 5%, if you are purchasing the home for your own use, some of that amount is rebated on properties under $450,000.

The legal work on your purchase must be completed by a lawyer or notary public. Unlike other parts of Canada, in British Columbia most of the work on residential sales is done by notaries. Your lawyer or notary can usually quote you a fee on the required work. On top of that, you will have to pay for disbursements (their expenses such as transfer fees, registration fees, title searches, courier charges etc.).

Other costs include those associated with a mortgage, such as mortgage fees, appraisal fees, registration fees and survey costs. Mortgages can be arranged through banks, mortgage brokers, or even at times, through the sellers. Coast Realty Group has an associated mortgage broker, Greg Nowik with Mortgage Intelligence (www.gregnowik.com).

U.S. or Offshore Buyers

For non-resident buyers, the purchasing process is pretty straightforward as long as you are planning on visiting your new home for no more that 6 months per year. You will have to make a down payment of 35% of the purchase price, and that amount must come from your own resources (not from a loan or second mortgage). If you wish to live here for more than 6 months annually, you must apply for immigration status and should consult an immigration lawyer.

Additional Links

MLS for Nanaimo
www.mls.ca/map.aspx?AreaID=241

Coast Realty Group
www.coastrealty.com

The Informed Home Buyer/Seller Newsletter
April 08

May 2008

Universal Mortgage Architects (Mortgage Brokers)
www.gregnowik.com

Vancouver Island Real Estate Board
www.vireb.com/home.html

Canada Mortgage and Housing Corporation
http://www.cmhc-schl.gc.ca/

Currency Calculator
www.x-rates.com

Immigration Information
www.victorialaw.com