Whistler Real Estate Buyers & Sellers
Financing Advice for Buyers
Completion Costs:
a. Property Transfer Tax (PTT). All transfers of real estate are applicable to a Provincial Government Tax payable on the completion date. The first $200,000 of the purchase price will be taxed at a rate of 1% with a 2% tax on the remaining balance.
b. Legal Fees and Disbursements. These are the fees paid to a lawyer or notary for the completion of the transaction on your behalf. The exact amount of these charges will vary depending on the transaction but generally they range from approximately $600.00 to $1,000.00. Most lawyers and notaries will provide quotes of their charges. It is important to ask whether the quote includes all expenses to complete the transaction.
c. Goods and Services Tax (GST). Upon the purchase of new construction and/or pre existing accommodations previously rented for short-term or nightly rentals, a GST tax of 7% may be applied, unless it is included in the purchase price. It is possible to defer the payment of GST if the purchaser intends to rent out the property for short-term/nightly rentals at least 90% of the year. The purchaser must also become a GST registrant.
d. Appraisal Fee. An appraisal determines the value of the property. Financial institutions will order the appraisal but it is the responsibility of the borrower to pay the appraisal fee.
e. Execution of Mortgage Documents. After the commitment letter has been signed by the borrower and lender, a notary public or lawyer will be asked to draw the mortgage security. It must then be couriered to the borrower for the final execution in the presence of a notary public or lawyer. Please note: Faxes or other methods of transmission are not acceptable. Courier service only.
On-going costs:
Common operating costs associated with Whistler real estate ownership are:
a. Property Taxes. Paid in July for the full calendar year. A monthly payment plan for 10 month of the year can arranged with the Resort Municipality of Whistler.
b. Tourism Whistler Fees. These fees are based on the number of bed units per accommodation and on the use of the property. Property located on “Resort” lands are subject to quarterly fees payable to Tourism Whistler. For more information contact the Whistler Resort Association at 604-932-3928.
c. Insurance. It is the buyer’s responsibility to arrange insurance for single-family residential accommodations. For strata-titled properties, it is recommended buyers purchase liability and content insurance.
d. Condominiums/Townhouses maintenance fees. A maintenance fee payable to the Strata Corporation will be charged monthly to the buyer. Should circumstances arise which require extra funds not available in the contingency reserve fund, the Strata Corporation is entitled to levy special assessments.
e. Utilities. Buyers may need to set up new accounts for hydro, cable, gas and telephone.
f. Accounting Fees. If the property is a revenue property, then non-residents will have to file tax returns each year in Canada. See related accounting links
g. Exempting Tax on Rental Income. Non-residents are required to pay 25% of the gross rental income to Revenue Canada, however, this may be withheld if it can be proven that the projected rental income will be less than the expected expenses coupled with the property. To obtain an exemption, fill out the NR6 form and file a tax return with Revenue Canada.
Financing Advice for Buyers
Completion Costs:
a. Property Transfer Tax (PTT). All transfers of real estate are applicable to a Provincial Government Tax payable on the completion date. The first $200,000 of the purchase price will be taxed at a rate of 1% with a 2% tax on the remaining balance.
b. Legal Fees and Disbursements. These are the fees paid to a lawyer or notary for the completion of the transaction on your behalf. The exact amount of these charges will vary depending on the transaction but generally they range from approximately $600.00 to $1,000.00. Most lawyers and notaries will provide quotes of their charges. It is important to ask whether the quote includes all expenses to complete the transaction.
c. Goods and Services Tax (GST). Upon the purchase of new construction and/or pre existing accommodations previously rented for short-term or nightly rentals, a GST tax of 7% may be applied, unless it is included in the purchase price. It is possible to defer the payment of GST if the purchaser intends to rent out the property for short-term/nightly rentals at least 90% of the year. The purchaser must also become a GST registrant.
d. Appraisal Fee. An appraisal determines the value of the property. Financial institutions will order the appraisal but it is the responsibility of the borrower to pay the appraisal fee.
e. Execution of Mortgage Documents. After the commitment letter has been signed by the borrower and lender, a notary public or lawyer will be asked to draw the mortgage security. It must then be couriered to the borrower for the final execution in the presence of a notary public or lawyer. Please note: Faxes or other methods of transmission are not acceptable. Courier service only.
On-going costs:
Common operating costs associated with Whistler real estate ownership are:
a. Property Taxes. Paid in July for the full calendar year. A monthly payment plan for 10 month of the year can arranged with the Resort Municipality of Whistler.
b. Tourism Whistler Fees. These fees are based on the number of bed units per accommodation and on the use of the property. Property located on “Resort” lands are subject to quarterly fees payable to Tourism Whistler. For more information contact the Whistler Resort Association at 604-932-3928.
c. Insurance. It is the buyer’s responsibility to arrange insurance for single-family residential accommodations. For strata-titled properties, it is recommended buyers purchase liability and content insurance.
d. Condominiums/Townhouses maintenance fees. A maintenance fee payable to the Strata Corporation will be charged monthly to the buyer. Should circumstances arise which require extra funds not available in the contingency reserve fund, the Strata Corporation is entitled to levy special assessments.
e. Utilities. Buyers may need to set up new accounts for hydro, cable, gas and telephone.
f. Accounting Fees. If the property is a revenue property, then non-residents will have to file tax returns each year in Canada. See related accounting links
g. Exempting Tax on Rental Income. Non-residents are required to pay 25% of the gross rental income to Revenue Canada, however, this may be withheld if it can be proven that the projected rental income will be less than the expected expenses coupled with the property. To obtain an exemption, fill out the NR6 form and file a tax return with Revenue Canada.