Costs & taxes
Closing Costs When Buying a Home in British Columbia (2026)
The cash you need on top of the down payment: property transfer tax and its exemptions, GST on new homes, legal fees, inspection, insurance, adjustments and the buffer to keep. With worked examples for a condo and a house.
The purchase price is the big number. Closing costs are the smaller numbers that all arrive in the same two weeks, and they come out of cash, not the mortgage. Buyers who plan for them choose a price range with confidence. Buyers who do not discover them on the lawyer's statement of adjustments a few days before completion.
This is the list I walk through with every buyer, with the current BC and federal figures as of October 2026. Rules change; the sources at the end are the ones to check.
First, three different pots of money
- The deposit is paid after the offer is accepted (usually on subject removal). It forms part of the purchase price and is held in trust.
- The down payment is the part of the price your mortgage does not cover. The deposit is credited toward it.
- Closing costs are everything else: taxes, fees and adjustments needed to complete. They are on top of the price.
1. Property transfer tax
BC's property transfer tax (PTT) is usually the largest closing cost on a resale purchase. It is charged on the fair market value registered at the Land Title Office:
| Portion of value | Rate |
|---|---|
| First $200,000 | 1% |
| $200,000 to $2,000,000 | 2% |
| $2,000,000 to $3,000,000 | 3% |
| Over $3,000,000 (residential) | 5% (3% plus a further 2%) |
Examples: $800,000 → $14,000. $1,500,000 → $28,000. $2,400,000 → $50,000.
First-time home buyers' exemption. For an eligible buyer purchasing a qualifying home on 0.5 hectares or less: a full exemption at $500,000 or less; an exemption capped at $8,000 from $500,000 to $835,000; a phase-out from $835,000 to $860,000; nothing at $860,000 and above. So a first-time buyer at $800,000 pays $6,000, not zero. If only one of two buyers qualifies, the benefit is reduced.
Newly built home exemption. Separate from the first-time program and not limited to first-time buyers: a full exemption on a qualifying never-occupied principal residence valued up to $1.1 million, partial up to $1.15 million.
Additional tax for foreign buyers. Foreign nationals and foreign-controlled corporations pay a further 20% on residential purchases in Metro Vancouver and several other regions.
2. GST on new or substantially renovated homes
A typical resale home is not subject to GST. A new home, a developer pre-sale or assignment, or a substantially renovated property attracts 5% GST, and the contract decides whether the stated price includes it.
Eligible first-time buyers can now claim a federal GST rebate of up to $50,000 on a new or substantially renovated home: the full rebate on homes up to $1 million, phasing out between $1 million and $1.5 million. Other buyers may qualify for the older new housing rebate on lower-priced homes. Builders can sometimes credit the rebate at closing; otherwise you apply to the CRA. Confirm the treatment in writing with the developer and your lawyer before you rely on it.
3. Legal or notary fees and disbursements
A lawyer or notary prepares and registers the transfer and mortgage, reviews the statement of adjustments, and handles the money. Expect a professional fee plus disbursements (title searches, Land Title Office registration fees, courier, and GST on the fee). Get a written quote that lists what is included; a mortgage adds documents and cost.
4. Inspection, appraisal and lender costs
A home inspection is a few hundred dollars for a condo and more for a house; it is the best money in the transaction. Your lender may require an appraisal, which you may pay for. If your down payment is under 20%, mortgage default insurance applies; the premium is usually added to the mortgage rather than paid in cash, but it increases what you borrow.
5. Strata documents and professional review (condos and townhouses)
The seller usually provides the strata package, but you may order an updated Form B (up to $35 plus copying), and you may choose to pay for an engineer, accountant or lawyer to review something specific. Small money against the risk of a levy.
6. Insurance
Your lender needs proof of insurance before advancing funds. For a condo, that is a unit-owner policy covering contents, improvements, liability and your share of the strata's deductible. For a house, a full home policy. Quote it early; some buildings and some older houses are harder to insure than others.
7. Adjustments
Property taxes, strata fees, utilities and sometimes rent are prorated between seller and buyer as of the completion date. If the seller prepaid property taxes for the year, you reimburse them for the period after completion. These are reconciliations, not fees, but they still require cash on the day. For a condo, confirm who pays any approved special levy instalments.
8. Title insurance
Many lenders require it and many lawyers recommend it. A one-time premium that protects against title defects, survey issues and some types of fraud.
9. If you change your mind
Under BC's Home Buyer Rescission Period, backing out during the three business days after acceptance costs 0.25% of the purchase price, paid to the seller. On a $1,000,000 purchase that is $2,500. Not a closing cost if all goes well, but a number to know.
10. Moving and the first month
Movers, elevator booking fees and deposits, utility setup, locks, immediate repairs, furniture. Keep a reserve after completion. I would rather see a buyer put slightly less toward the down payment and keep a few thousand dollars accessible than start ownership with nothing in hand.
Two worked examples
These are planning illustrations with round-number estimates for the smaller items. Your lawyer, lender and insurer provide the real figures.
A. $800,000 resale condo, first-time buyer, 10% down
| Item | Estimate |
|---|---|
| Property transfer tax after first-time exemption | $6,000 |
| Legal fees and disbursements | $1,500–$2,500 |
| Inspection | $400–$700 |
| Appraisal (if required) | $0–$500 |
| Form B and document costs | $35–$150 |
| Condo insurance (first year) | $400–$900 |
| Adjustments (varies by date) | $500–$2,500 |
| Title insurance | $200–$400 |
| Moving and setup | $1,500–$4,000 |
| Approximate total on top of the down payment | $10,500–$17,700 |
B. $1,500,000 resale house, repeat buyer, 20% down
| Item | Estimate |
|---|---|
| Property transfer tax | $28,000 |
| Legal fees and disbursements | $1,800–$3,000 |
| Inspection (plus any specialist, e.g. oil tank scan) | $600–$1,500 |
| Appraisal (if required) | $300–$600 |
| Home insurance (first year) | $1,500–$3,500 |
| Adjustments (varies by date) | $1,000–$6,000 |
| Title insurance | $300–$600 |
| Moving and setup | $3,000–$8,000 |
| Approximate total on top of the down payment | $36,500–$51,200 |
The difference between the two is almost entirely property transfer tax, which is why the exemptions are worth understanding precisely.
A checklist before you set your price range
- Total cash to complete, confirmed by your lender in writing.
- PTT calculated, with any exemption confirmed by your lawyer or notary.
- GST treatment confirmed if the home is new.
- Legal quote in hand.
- Insurance quoted.
- A reserve left over for the first month.
This article is general information, not legal, tax or lending advice. The figures reflect provincial and federal rules as of October 2026 and will change; confirm your situation with your lawyer or notary, lender and accountant.
Sources
- Province of British Columbia – Property transfer tax
- Province of British Columbia – First time home buyers' program
- Province of British Columbia – Newly built home exemption
- Canada Revenue Agency – GST/HST new housing rebates
- BC Financial Services Authority – Home Buyer Rescission Period consumer guide
- Province of British Columbia – Form B Information Certificate