Purchasing Costs

When buying a home in Penticton B.C. there are some costs that you might not be fully aware of. The cost of buying a home is not just the listing price.  There are many additional cost to prepare yourself for when buying a property. Lets make sure that you are fully aware of these costs so that there are no surprises.  Set aside some extra money to cover these costs and then you won’t be scrambling for an unexpected expense. 

The biggest expense will be the deposit you put down when you make an offer of the place you want to buy. Generally the deposit will be around five percent of the purchase price. This amount is up to the seller of the property to decide. The whole idea is that the seller wants to be confident that you are not going to walk away from the deal, because you won’t want to lose your deposit. 

If you use a mortgage broker to secure a mortgage there will also be fees associated with that as well. There might be a mortgage loan insurance premium plus an application fee. 

In British Columbia when purchasing a newly built home you may also have to pay the GST and/or PST. There will be several other fees such as property or land tax transfer, adjustments, and interest.

You might need to pay for a home inspection or other types of inspections such as furnace inspection, appraisal fee, or if you are buying an acreage a water quality test.

Then there are the more obvious expenses such as your moving expenses, renovations, and furniture. Plus you will have your regular on going expenses that you may pay monthly, quarterly, or on a yearly basis. These include your mortgage payment, water, electricity, cable, phone, internet, property insurance, property taxes, repairs, and if you buy a condo strata fees. 

I know all of this sounds like a lot but don’t let all of these additional expenses spook you. It is all part of the cost of home ownership and it is well worth it.

If you are interested in buying some real estate in Penticton or anywhere else in the Okanagan, be sure to give Scott Bowland a call.  When working with you, he will sit down and go over a detailed list of expenses you will incur when buying your home. There will be different expenses depending on the type of home you purchase. Scott can also put you in contact with many different vendors throughout the city that will be able to provide you competitive pricing on many of the associated costs. Be sure to give Scott a call if you are looking to buy in the local real estate market.

ONGOING COSTS ASSOCIATED WITH OWNERSHIP

Sample annual expenses when owning a $500,000.00, single family residence.
Property Taxes: Conservatively budget 1% of value of house

UTILITIES
Hydro: $100.00/month
Gas: $2500.00
Water: $500.00
++ Monthly mortgage payments
Maintenance
Annual house & fire insurance $600/year
Monthly condo maintenance fees if applicable.

Scott Bowland is a top Penticton Mortgage Broker, providing custom mortgages for Penticton, Summerland, Naramata, Kaleden, OK Falls, Oliver, and Osoyoos.

For all of your Real Estate and Mortgage needs contact Scott Bowland:

Phone: 250-493-6040
Mobile: 250-462-2274
Fax: 1-866-534-9145

#101-301 Main Street, Penticton, British Columbia, V2A 5B7

Check out these properties in Penticton and the surrounding area: Penticton Real Estate Listings