A Smarter Way to Buy A Home – Let Doma Group Show You How

In addition to the down payment, there are several costs buyers should be aware of when purchasing a home in Vancouver. These include:

• Property Transfer Tax (PTT): 1% on the first $200,000, 2% on the portion between $200,000 and $2 million, and 3% on the portion above $2 million. An additional 2% applies to properties over $3 million.
• Mortgage Loan Insurance: Required if your down payment is less than 20%.
• Home Inspection Fees: Typically range from $400 to $800, depending on the size of the home.
• Legal Fees and Title Transfer Costs: Usually between $800 and $2,500.
• Property Tax and Strata Fees (if applicable): May be adjusted at closing based on when you take ownership.

These are not the complete list of additional costs, but being financially prepared for these costs ensures there are no surprises during the home-buying process.

Yes, getting pre-approved for a mortgage before you start house hunting is highly recommended. A pre-approval helps you:

• Understand how much you can afford.
• Lock in an interest rate for up to 120 days.
• Show sellers that you are a serious and qualified buyer.

The pre-approval process involves a lender reviewing your income, credit score, employment history, and debt levels to determine how much they are willing to lend you. Having a pre-approval can give you a competitive edge in Vancouver’s fast-moving real estate market.

Determining whether a home is priced fairly requires looking at comparable sales (comps)—recently sold homes in the same neighbourhood with similar features. Your Doma Group real estate agent can provide a Comparative Market Analysis (CMA) to assess whether the asking price aligns with current market conditions. Other factors that impact a home’s price include:

• The home’s condition and any recent upgrades.
• Market trends (buyer’s vs. seller’s market).
• The number of days the property has been on the market.

If a home is priced too high, you may have room for negotiation, while homes priced fairly or below market value may attract multiple offers.

When viewing a home, it’s important to assess both its aesthetic appeal and structural integrity. Pay attention to:

• The condition of the roof, windows, and exterior.
• Signs of water damage or mold in basements and bathrooms.
• The functionality of plumbing and electrical systems.
• Storage space and layout suitability for your needs.
• Potential renovation costs if updates are needed.

It’s easy to get caught up in staging and décor, but focusing on the home’s long-term livability is crucial. If you’re seriously considering a property, hiring a home inspector will give you a professional assessment.

A subject condition is a clause in an offer that must be met before the sale is finalized. As the buyer, you are given a period of time, usually 7 days, to do your due diligence and go through the variety of subject conditions to ensure this is the correct home for you to buy. Common subject conditions include:

• Financing – Ensuring your lender approves your mortgage for the property.
• Home inspection – Allowing a professional to check for structural or mechanical issues.
• Property disclosure review – Examining details about past repairs or known problems.
• Strata document review (for condos/townhouses) – Checking the building’s financials and bylaws.

Once all subject conditions are satisfied, the buyer can lift their subjects and the deal can go firm, meaning the buyer is committed to purchasing the home.

Once you find a home you want to purchase, your Doma Group real estate agent will draft an offer to purchase, which includes:

• The offer price.
• Subject conditions (if any).
• The deposit amount, which is typically 5% of the purchase price.
• The desired completion and possession dates.
• Any and all inclusions when viewing the property

If the seller accepts your offer, you’ll enter the subject removal period (if applicable), where you satisfy any conditions like financing and inspection. After subject removal, the deal becomes firm and binding, and you’ll prepare for closing.

First-time buyers in BC can take advantage of several programs:

• First-Time Home Buyers’ Program (PTT Exemption): If the home is under $500,000, you may be eligible for a full exemption from the Property Transfer Tax. A partial exemption applies to homes between $525,000 and up to $835,000.
• Home Buyers’ Plan (HBP): Allows first-time buyers to withdraw up to $60,000 (as of April 2024) from their RRSPs tax-free for a down payment. This amount must be re-paid within 15 years.
• First Home Savings Account (FHSA): Lets you save up to $8,000 per year tax-free, up to a lifetime maximum of $40,000, to put toward your first home.

These programs can significantly reduce the upfront costs of buying a home in Vancouver.

At the moment, the Canadian government has implemented a foreign buyer ban, preventing non-Canadians from purchasing residential properties in certain areas, including Vancouver. However, there are exceptions for:

• Permanent residents
• International students and workers meeting specific criteria.
• Non-residents purchasing recreational properties (outside urban areas or in exempt locations).

Foreign buyers are also subject to a 20% additional property transfer tax in Metro Vancouver. If you’re a non-resident looking to buy, it’s best to consult a real estate lawyer to ensure compliance with current regulations.

A Doma Group real estate agent will provide invaluable market expertise, negotiation skills, and industry connections to help buyers find the right home. Here’s what our agent do:

• Identifies properties that match your specific criteria
• Schedules and accompanies you to showings
• Provides insight into market trends and home values
• Drafts and negotiates offers to secure the best terms
• Guides you through inspections, financing, and closing

The best part? As a buyer, you don’t directly pay for real estate agent services — their commission is covered by the seller when the sale of the home completes. Working with an agent ensures you make an informed and confident purchase, so why wouldn’t you?