Closing Costs Explained

Overview

Closing costs are often underestimated, but they can significantly impact your final budget. These are the one-time fees and expenses you pay in addition to your down payment when finalizing a home purchase. In BC, these typically range from 1.5% to 4% of the purchase price. Your Lawyer or Notary will provide you with a statement of adjustments, this statement outlines all costs and fees associated with transfering a property.

Major Closing Costs in BC

1. Property Transfer Tax (PTT)

In BC, PTT is calculated as:

• 1% of the fair market value up to and including $200,000
• 2% of the fair market value greater than $200,000 and up to and including $2,000,000
• 3% of the fair market value greater than $2,000,000

First-time buyers may qualify for a full or partial Property Transfer Tax exemption.

2. Legal or Notary Fees

Required for conveyancing and title registration. Expect to pay around $1,500–$2,000.

3. Title Insurance

Often recommended or required by lenders. Costs typically range from $150–$400.

4. Home Inspection

While technically optional, it’s highly recommended. Cost: $400–$700+ depending on property size and complexity.

5. Appraisal Fee

If you're getting a mortgage, lenders may require a property appraisal. Expect $300–$500.

6. GST (New Builds Only)

Applies to new construction homes—5% of the purchase price. A partial rebate may apply for homes under $450,000.

First-Time Home Buyers’ GST Relief on homes up to $1.5M (full rebate on homes up to $1M, thats $50,000 in savings!)

Smaller or Situational Costs

• Adjustments for property taxes or strata fees
• Mortgage default insurance (if applicable)
• Moving costs
• Utility hookups and deposits

How to Budget Wisely

• Use a spreadsheet or calculator to estimate total closing costs
• Build a buffer—round up rather than down
• Ask your REALTOR® and mortgage broker for a full breakdown early in the process

FAQs

Q: Are closing costs due upfront?
A: Most are due at closing, which is usually a day or two before possession. Your lawyer or notary will give you the final amount and coordinate payment.

Q: Can I roll closing costs into my mortgage?
A: Generally, no. Most lenders require these to be paid out-of-pocket.

Need personalised advice? Reach out any time.

This guide provides general information only and may not reflect the latest regulations or market conditions. It is not legal or financial advice. Always verify details and consult qualified real-estate, mortgage, and legal professionals before making decisions.