Below you may find the major taxes and fees that are applicable to buyers at and after purchasing a new home. Please get in touch for details, exemptions, rebates, credits, and cost saving programs.
You may also contact us for a return on investment analysis.
Goods and Services Tax (GST) for new developments:
For new developments, buyers pay 5% GST on purchase price.
Closing and adjustment fees:
Annual Property Tax:
This tax is based on assessed property value, property location, and property usage. Usually ranges between 0.25%-0.50% of property assessment value depending on location. The home owner grant reduces the amount of property taxes paid each year on principal residence.
1% of the property value if property is empty for more than 6 months in a calendar year. Valid only for the properties located in the City of Vancouver, not in the other regions of Greater Vancouver Area.
Home owners, who don't pay income tax in BC, pay a speculation tax for their vacant homes in certain districts* of BC. The tax will be 0,5% of assessed value of the property in 2018 and will rise to 2% in 2019.
* Metro Vancouver, Fraser Valley, Capital and Nanaimo Regional Districts, and in the municipalities of Kelowna and West Kelowna.
Monthly management fee is paid to strata corporation by the owner of a condo or townhouse (even in case the property is rented). Usually in the range of 25-50 cents per sqf per month.
Rental and Property Management Fees:
If the property is rented and a third party takes care of rental and property management, you need to pay rental management commission that is half of monthly rent (paid once at renting), and property management commission that is around 7% of rent (paid each month).
If the property is rented, owners (both the residents and non-residents of Canada) need to file income tax. You can deduct any reasonable expenses you incur to earn rental income such as interest portion of the mortgage payment, annual property tax, strata fee, insurance, utilities, maintenance and repairs, commissions paid for rental and property management.
Above information is based on the most reliable information we could reach. Actual figures may differ.
Please contact your financial advisor to get precise information.