Complete Guide to Home Buying Costs in Nanaimo, BC - 2024

Written by Ion John Bucur, Real Estate Advisor with EXP Realty. Contact me for guidance on buying or selling a home in Nanaimo and Central Vancouver Island.

The cost of buying a house in Nanaimo, BC, extends beyond the purchase price. Knowing the full range of expenses beforehand will ensure you’re financially prepared, allowing you to avoid surprises and make an informed home-buying decision.

Below, we break down all costs related to buying a home in Nanaimo, including expenses before, during, and after closing.

Costs During Subject Removal When Buying a Home in Nanaimo, BC

Once you have an accepted offer, there are costs to consider during the subject removal stage:

1. Property Appraisal

Cost: $300 - $450 + GST

Appraisals are often required by lenders to confirm the value of the property. Your mortgage broker may cover this cost, so check if it applies to you.

2. Home Inspection

Cost: $400 - $800 + GST

A professional home inspection, paid by the buyer, helps identify any issues. Some sellers provide a pre-inspection, but in most cases, this expense falls on the buyer.

3. Deposit

Cost: Typically 5% of the purchase price

This amount is payable upon offer acceptance and held in trust by the buyer’s agent’s brokerage until closing. It contributes to your down payment.

Closing Costs for Buying a House in Nanaimo, BC

Upon subject removal and as you near completion, additional costs come into play. Here are the main expenses to expect on closing day:

1. Balance of Purchase Price

The remaining balance after subtracting your deposit. Most of this amount is covered by your mortgage loan.

2. Legal Fees

Cost: $1300 - $2200

Includes title search, registration, and other necessary legal work. Fees vary based on the lawyer or notary you choose.

3. CMHC Insurance Premium

Applicable if your down payment is under 20%. This insurance premium may be added to your mortgage payments.

4. Title Insurance

Cost: $250 - $400

Protects you and your lender against title issues. Sometimes included in legal fees.

5. Property Transfer Tax (PTT)

Calculated as:

• 1% on the first $200,000
• 2% on the next $1,800,000 (up to $2,000,000)
• 3% on amounts above $2,000,000

Additional 2% for residential properties valued over $3,000,000.

6. Foreign Ownership PTT

An additional 20% applies to foreign buyers in specific regions, including Nanaimo. The tax does not apply on Tsawwassen First Nation lands.

7. Property Tax Adjustments

If the seller has prepaid property taxes for the year, the buyer may need to reimburse the seller for the remaining term.

8. Utility Adjustments

This includes reimbursements for prepaid strata fees, utilities, or other services.

Post-Purchase Expenses for Nanaimo Home Buyers

1. Moving Expenses

Cost: Starts at $1,000

2. New Locks and Security

Cost varies depending on the property.

3. Utility Connection Fees

Additional charges may apply for setting up electricity, water, and other utilities.

4. Redecorating and Renovation Costs

Varies widely depending on the scope of changes you wish to make.

5. Immediate Repairs and Maintenance

Be prepared for any immediate repairs or maintenance required to make the home comfortable.

Important Tax Exemptions for Home Buyers in Nanaimo

Some buyers may qualify for tax exemptions to reduce overall costs. Here are three common exemptions:

• First-Time Home Buyer Property Transfer Tax Exemption: Full exemption for homes under $835,000.
• Newly Built Home Exemption: Potential exemption for new properties under $750,000.
• GST New Home Rebate: GST rebate on new homes priced up to $450,000.

Consult your REALTOR® to understand which exemptions may apply to your purchase.

The Value of Hiring a REALTOR® When Buying a Home in Nanaimo

One of the best parts of hiring a REALTOR® is that their services are typically free for buyers. A professional can help you:

• Estimate all home-buying costs
• Understand the responsibilities of homeownership
• Negotiate favorable terms
• Navigate tax exemptions and incentives

If you’re considering buying a home in Nanaimo, having a knowledgeable REALTOR® by your side can save you time, stress, and money.