Buying FAQs
What is the difference between, an appraisal, an assessment and a home inspection?
Inspection
- Everyone should have a home inspection before purchasing any property, including new construction.
- It is only approx. $425 + but it can save you thousands of dollars!
- The most important thing is to select a certified inspector of your choice and to be there at the time he or she makes the inspection.
- The inspector’s job is to go over the home with a fine tooth comb and when presented with the report, don’t be alarmed. Some things are to be expected, such as outdated electrical systems in older homes and minor settlement in foundations and walls.
Assessment
- An assessment is the value that your taxing authority uses for determining the amount of taxes on your home.
- This assessment may be done with a drive-by look at your property, or a more detailed inspection.
- This may be adequate, but it may not reflect an accurate market value of your property today
Appraisal
- An appraiser is often hired by a bank or by an owner for the uses of determining the current market value.
- An appraiser will do a very detailed extensive research of the area, neighborhood and specific property.
Need a mortgage? What is the difference between a bank loan officer and a mortgage broker?
If you are buying a home, chances are you will need a mortgage, but did you know there is a big difference between mortgage brokers and bank loan officers?
Bank Loan Officer
- The loan officers at a bank or credit union or any other lending institution are employees who work to sell or process mortgages and other loans originated by their employer.
- They often have a wide variety of loans type to choose from but all loans originate from one lending institution.
Mortgage Broker
- Many of the mortgage companies that you have on line are “mortgage brokers”. Mortgage Brokers are professionals who are paid a fee by the banks to bring together lenders and borrowers.
- They usually work with hundreds of lenders, not as employees but as freelance agents. A good mortgage lender can find a loan for about any type of credit.
- A mortgage broker working to secure a loan will earn a fee for the transaction and the better deal they achieve for the lender the more they get paid!
- Don’t be anxious to disclose a broker the interest rate you are willing to accept….Let them tell you what terms they can secure. Shop around to make sure the terms are reasonable.
Some links and phone numbers to think about …
www.mortgagecentre-nsc.com
www.okanaganmortgageteam.com
Rossland Credit Union – 250.362.7393 – www.rosslandcu.com
Bank of Montreal Trail – 250.368.9141
CIBC Trail – 250.368.2100
Td Canada Trust – 250.368.2551
Tax questions should be answered by a certified accountant. Here is some basic tax info:
When I purchase Real Estate, when is GST applicable?
- Determining whether or not Goods and service tax (GST) will be applicable on you real estate purchase is a question that should be answered by your certified accountant.
What is the “Property Transfer Tax” and are there any exemptions applicable for first time buyers?
- The property transfer tax is a provincial tax that is applied to all Real Estate purchases and is paid at the closing of the sale.
- Calculated on the fair market value of the property, the property transfer tax is 1% on the first $200,000 and 2% of the balance of the sale price.
- This amount is payable by the purchaser unless they qualify for an exemption.
What is the Property Transfer Tax exemption?
