Frequently Asked Questions

Here is a list of the most frequently asked questions we receive from our new and old clients. A lot of individuals often have the same questions in mind, so here is a constantly updated list of answers to those questions. We hope this section helps answer any questions you may have before starting your real estate journey. If you can't find the answers to your questions here, please contact us at the number below or check out our BLOGS page for continuous updates in regards to real estate news, buyer/seller tips, and best practises.

Do I need a minimum of 20% down to purchase a home?

Absolutely not! You only need a minimum downpayment of 20% if you're buying a property over $1,000,000. For properties under a fair market value of $500,000 you can put as little as 5% down and for properties between $501,000-$999,999 you can pay 5% on the first $500,000 and 10% on the remainder. As an example lets say you were buying a home for $750,000 and wanted to put down the minimum down payment, Well, you could put down 5% on the $500,000 which would be $25,000 and 10% from $500,000 to $750,000 which would be $25,000 so in total your minimum downpayment for a $750,000 home would be $50,0000. Sound great doesn't it?! However, something that needs to be considered is if you put down less than 20% on any residential property, you will have to apply for CMHC Mortgage Default Insurance. Which you can pay as a lump sum payment or have it included in your monthly mortgage payment. The cost of default insurance varies, but expect it to be 2-5% of your purchase price, which means if you blend it into your monthly mortgage your payments could be $200-$300 more per month.
Will the Vancouver Real Estate Market Crash?

The simple answer is highly unlikely. We can't say no for sure, the likelihood of a market crash is currently considered low. The city's real estate market has shown resilience in the face of past economic fluctuations. Factors such as sustained demand, limited housing supply, and historically low-interest rates contribute to a stable outlook. While markets can be influenced by various factors, the overall trend suggests that a significant crash is not imminent. It's essential to monitor economic indicators, government policies, and global events for potential shifts in the market dynamics. It's also important to consider immigration, not just globally but inter-provincially. Vancouver and BC for that matter is world-class and people want to live her, because of that, people will move here time and time again, driving up the demand for housing. So with long demand and short supply, it is unlikely to see a crash happening anytime soon.
When buying a property, what are the closing costs?

The closing costs account for about 2-3% of the total purchase price for the purchase of a residential property. These are costs that have to be paid out of pocket on the closing date and cannot be blended into your mortgage. The closing costs include the Property Transfer Tax, GST (If Applicable), Home & Fire Insurance, Notary or Lawyer Fees, and Transfer Fees for registering the title. Property Transfer Tax takes up a big chunk of the closing costs and how its calculated is 1% on the first $200,000 and 2% on the remainder, until $3,000,000 where you would be a 3% tax on the sale.
How is Property Transfer Tax calculated?

In British Columbia, property transfer tax (PTT) is a tax levied on the purchase or transfer of real estate. The calculation of PTT is based on the property's fair market value, and the tax rates are tiered. Here's a breakdown of how property transfer tax is calculated in British Columbia:

1% on the first $200,000:

The first $200,000 of the property's fair market value is taxed at a rate of 1%.
2% on the portion between $200,000 and $2 million:

The portion of the fair market value between $200,000 and $2 million is taxed at a rate of 2%.
3% on the portion exceeding $2 million:

Any amount exceeding $2 million is taxed at a rate of 3%.

As an example. Let's say you bought a $900,000 home, the property transfer tax on that home would be $16,000 (1% on $200,000 & 2% on $700,000). This tax is paid on closing.

There is an exemption on this tax however, if you purchase a home under $835,000 you will be exempt from paying Property Transfer Tax and from $835,000-$860,000 you will receive a partial exemption.
When is the best time to sell?

The best time to sell your home depends on local market conditions, but general trends suggest spring and early summer are peak seasons. Consider the economic climate, interest rates, and your personal circumstances. Keep your home in good condition and be strategic about pricing. Consult with a local real estate professional (like me!) for personalized advice based on current market dynamics. An agent will be able to give you the most updated information on the market and economic climate and will help you decide if it is a good time to sell.