BC Mortgage Calculator 2021
Mortgage Costs Over 5-Year Term
Your land transfer tax could be lower if you are a first-time home buyer
British Columbia’s Property Transfer Tax
As an equivalent to a land transfer tax, BC’s property transfer tax is owed by the buyer of a home on the completion date. The property transfer tax you will owe is based on a marginal tax rate system, with the following rates applying:
|Sale Price||Marginal Tax Rate|
|$200,000 to $2,000,000||2%|
|$2,000,000 to $3,000,000||3%|
This means that if you were to buy a home at $1,152,000, the average home price in Vancouver, you would incur $21,040 in property transfer taxes.
BC’s First Time Home Buyer Incentives
If you qualify as a first time buyer in British Columbia, you may be eligible for a rebate on the amount of property transfer taxes you owe. For those purchasing a home for under $500,000, you will be eligible for a rebate that covers the full transfer tax amount. As the sale price gets progressively higher than $500,000, you will qualify for a smaller rebate all the way up to a purchase price of $525,000. For prices higher than $525,000, no rebate will be available.
For foreign buyers in select BC housing markets, an additional property transfer tax of 20% is incurred on the purchase price. For non-Canadians with a work permit from the BC Nominee Program, this additional tax is not charged.
British Columbia Closing Costs
In addition to the property transfer tax owed at close, other common closing costs you may face as a buyer in BC include:
- Lawyer & legal fees,
- A property survey,
- Home inspection fees,
- Title insurance,
- Property appraisal fees, and
- Government registration fees
Considering all these fees can really add-up, they should be considered when taking out a mortgage, so that you will be able to cover these costs in addition to your down payment.
British Columbia Home Prices
With an average home price in BC of $943,845 as of April 2021, British Columbia officially has the highest average sale price of all Canadian provinces. This average price is up 28.7% year over year, from $733,330 in April 2020. This means that incentives such as the property transfer tax rebates for homes under $525,000 will do little good for most buyers. These high home prices especially make having a large down payment over 20% and a good paying job a must to be able to compete in such a competitive market.
Cost of Living in BC
With the highest home prices and some of the highest average rental rates in Canada, the cost of living in BC is very high. For example, an average family of four in Vancouver renting a single family home and with 2 children in preschool can expect monthly living costs to be over $8000 per month! The cost of living in Vancouver, BC’s largest city, is the second highest in Canada only behind Toronto.
With the population of British Columbia being 5,140,000 as of July 1st, 2020, BC’s projected average growth rate is expected to be 1.1% annually until 2041. This would see the population grow to 5,820,000, in 2030, and 6,516,000 by 2041.