Closing Costs in BC: What to Budget Beyond Your Down Payment

Your down payment is the biggest cheque you write when you buy a home, but it is not the only one. Here is what else to budget for when you buy in BC, from property transfer tax to the adjustments on your lawyer's statement, so you can plan for each one well before completion.

The short version

Property transfer tax

For most buyers, property transfer tax is the largest closing cost paid out of pocket. The buyer pays it on the fair market value of the home when the transfer is registered:

• 1% on the first $200,000
• 2% on the portion from $200,000 to $2 million
• 3% on the portion over $2 million, plus a further 2% on the residential portion over $3 million

On a $900,000 home, that is $2,000 plus $14,000, or $16,000. Your lawyer or notary files the return and pays the tax on the day the transfer is registered, using funds you provide.

Two exemptions are worth checking. First-time buyers can save up to $8,000 on a home worth up to $835,000, with a partial exemption up to $860,000. Buyers of a newly built home that will be their principal residence can be fully exempt up to $1,100,000, with a partial exemption up to $1,150,000. Both come with residency and occupancy conditions. I go through them in First-Time Home Buyer Programs in BC.

GST on new homes

Most resale homes are exempt from GST. A newly built home, or one so substantially renovated that 90% or more of the interior was replaced, has 5% GST. First-time buyers of a new home can get a rebate of up to $50,000 of the GST on homes up to $1 million, with a partial rebate between $1 million and $1.5 million. If you are buying a presale or a new build, check whether the price includes GST.

Mortgage insurance

With less than 20% down, your mortgage has to be insured, and the purchase price has to be under $1.5 million. CMHC's premiums are a percentage of the loan:

• 2.80% with 15% to 19.99% down
• 3.10% with 10% to 14.99% down
• 4.00% with 5% to 9.99% down

A 30-year amortization, available to first-time buyers and buyers of new builds, adds 0.20%. The premium can be added to your mortgage or paid in full at completion. On an $800,000 home with 10% down and a 25-year amortization, a $720,000 mortgage at 3.10% adds $22,320 to the loan, or $23,760 at 3.30% over 30 years. Unlike Ontario, Quebec and Saskatchewan, BC doesn't charge sales tax on the premium.

Legal or notary fees

In BC, either a lawyer or a notary public can handle your purchase. They search the title, prepare the property transfer tax return and the statement of adjustments, and register you as the owner. Fees vary, so ask for a written quote, and remember that GST and 7% PST apply to legal services. Their bill also passes on costs such as the Land Title Office fees, which since April 1, 2026 are $83.82 to register the transfer and $83.82 to register the mortgage, plus small filing charges.

The Financial Consumer Agency of Canada lists title insurance among typical closing costs and suggests considering it to protect against title fraud. Your lender, lawyer or notary may recommend it.

Adjustments on your statement

Before completion, your lawyer or notary prepares a statement of adjustments showing exactly how much you need. If the seller has prepaid property taxes or other charges for the period after the adjustment date, you reimburse them on this statement. If the seller owes for the period before it, you get a credit.

Costs before and after completion

• Home inspection. Paid before you remove subjects. Home inspectors in BC must be licensed by Consumer Protection BC.
• Appraisal. Your lender may require one at your expense.
• Strata documents and fees. A Form B information certificate costs up to $35, plus copying. Many stratas also charge a move-in fee, which must be set out in a bylaw or rule and be reasonable.
• Home insurance. It must be in place on the day you complete, and your lender will want proof of it.
• Moving and setup. Movers, utility connections and the small things a new home always needs.
• Every year after. If the home is your principal residence, apply for the Home Owner Grant each year, and in taxable areas like the Tri-Cities, file a speculation and vacancy tax declaration by March 31.

Questions buyers often ask me

How much are closing costs in BC?

The Financial Consumer Agency of Canada suggests budgeting 1.5% to 4% of the purchase price for costs such as legal fees, inspections and adjustments. In BC, add property transfer tax unless an exemption applies: it is $16,000 on a $900,000 home, more than the low end of that range on its own.

Who pays the property transfer tax, the buyer or the seller?

The buyer. It is paid through your lawyer or notary when the transfer is registered at the Land Title Office.

Is GST charged on resale homes in BC?

Most resale homes are exempt. GST applies to new homes and to homes that have been substantially renovated.

Can I add closing costs to my mortgage?

The mortgage insurance premium can be added to the loan. Most other closing costs, including property transfer tax, are paid at completion rather than added to the loan, and lenders ask for proof that you have the money.

Is there sales tax on mortgage insurance in BC?

No. CMHC lists Ontario, Quebec and Saskatchewan as the provinces that charge sales tax on the premium.

Planning your purchase? Start with a mortgage pre-approval, try my mortgage calculator, and see how the steps fit together in From Offer to Keys.

This article is general information, not financial or legal advice. Fees and rates were current at the time of writing. For the Province's guide, see property transfer tax.