Costs Associated with Buying a Home in Kelowna BC
This is a question we get often from our clients looking to relocate to Kelowna from Alberta, Ontario and the rest of Canada.
How much is the land transfer tax? What are the closing costs? What is the cost of buying a home in Kelowna BC?
If you're from Ontario you are very familiar with the land transfer tax, if you're from Alberta, probably not so much.
In a nutshell the land transfer tax calculation as of 2022 is 1% on the first $200,000 and 2% on the balance up to $2,000,000 and then 3% of the balance above $3,000,000.
So, if you are buying a home in Kelowna for around $600,000 you can expect to pay a land transfer tax of around $10,000. If you are buying a home in Kelowna for $500,000 then the tax would be $8,000.
This fee is required as part of your closing costs, so when you meet with your lawyer or notary here in Kelowna, make sure that you have the funds to cover off the tax.
What is the Speculation Tax?
This is where I get a little bit political...the speculation tax was put in by the NDP government in 2018 to try and stop foreign investors from taking over the housing market in BC.
What the government, in their infinite wisdom, failed to realize is that the prices were not being driven up by less than 3% of the buyers in BC.
The price of housing is all about supply and demand, what the government has done is hurt local investors looking to provide solid housing for the rental market as well as the parents looking to buy a place in Kelowna for their kid to have a place to live while they go to UBCO.
Sometimes having a place here is cheaper than paying rent.
So, if you're a Canadian citizen and you are looking to purchase an investment property here in Kelowna or West Kelowna you will be subject to a tax of about .5% of the homes value which will be required to pay during tax time.
Legal Fees and Other
Alright, if you are looking for a lawyer or a notary here in Kelowna the prices are going to vary somewhat.
This will mostly come down to the price of the home that you are purchasing, expect to pay somewhere between $1500-$2500 (or more) for your legal fees including disbursements and taxes.
The other costs associated with buying a home in Kelowna would be things like a home inspection or condo document review. Both of these are going to run you somewhere between $400-$700, so make sure that they home you are making an offer on is THE one you want.
It can get expensive if you walk away during the conditonal phase of the offer period by figuring out you don't like the home as much as you thought you did.
These fees are non refundable.
As for your Kelowna Realtor or your Kelowna Mortgage Broker, you don't have to pay either of us. As your Realtor I am compensated by the llisting agent's brokerage who is paid by the seller and the broker is paid by the lender.
If you're interested in having a conversation about making a move to Kelowna BC you can book in with me right here.
For videos about what it's like to live here, make sure to subscribe to my YouTube channel: LiveLoveKelowna