Cash to Close

Cash to close is the total amount a buyer must deliver (typically by bank draft or wire transfer) to their lawyer or notary on or before the completion date. It includes the balance of the down payment (net of any deposit already paid), Property Transfer Tax under the Property Transfer Tax Act, RSBC 1996, c. 378, legal and notary fees, title insurance, adjustments for prepaid property taxes or strata fees, and any applicable GST. The Statement of Adjustments, prepared by the conveyancing lawyer or notary, itemizes this final figure and is usually provided several business days before completion. Verify the specific line items for your transaction with your BC lawyer or notary before completion.

The deposit you paid when you accepted the contract of purchase and sale is credited toward your total down payment; it is not added again to your cash to close. Your Statement of Adjustments will show the purchase price, subtract the deposit already held in trust, then add Property Transfer Tax (Property Transfer Tax Act, RSBC 1996, c. 378), legal fees, adjustments, and other closing costs to arrive at the net cash to close. Verify the exact calculation on your Statement of Adjustments with your BC lawyer or notary.

Property Transfer Tax is a provincial tax calculated on the fair market value of the property at registration of title, imposed under the Property Transfer Tax Act, RSBC 1996, c. 378. As of 2026-07-27 (verify current), the general rates are 1% on the first $200,000, 2% on the portion from $200,000 to $2,000,000, 3% on the portion from $2,000,000 to $3,000,000, and 5% on the portion above $3,000,000; eligible first-time and newly built home buyers may qualify for full or partial exemptions. PTT is due on or before registration and is a mandatory component of your cash to close unless you qualify for an exemption. Verify your eligibility and the current rates and thresholds with your BC lawyer, notary, or the BC Ministry of Finance before completion.

Yes, increasing your mortgage amount (subject to lender approval and affordability rules) reduces the down payment portion of your cash to close, because the lender advances more funds directly to your lawyer or notary on completion. However, cash to close also includes non-financeable costs such as Property Transfer Tax (Property Transfer Tax Act, RSBC 1996, c. 378), legal fees, title insurance, and adjustments, which cannot typically be added to your mortgage and must be paid in cash. Verify your lender's maximum loan-to-value ratio and whether any fees may be financed with your mortgage broker or lender, and confirm the final cash-to-close figure with your BC lawyer or notary.

Adjustments are prorated credits or debits for items the seller has prepaid (property taxes, strata fees, heating oil, etc.) or owes (unpaid utilities, property taxes); the conveyancing lawyer or notary apportions these as of the completion date. If the seller prepaid annual property taxes or strata fees beyond completion, you reimburse the seller for your share, increasing your cash to close; if taxes or fees are owing, the seller's proceeds are reduced and your cash to close may decrease or remain unchanged depending on the contract terms. Review the draft Statement of Adjustments with your BC lawyer or notary several days before completion to understand each line item.

GST at 5% (as of 2026-07-27 — verify current under the federal Excise Tax Act) applies to the purchase of newly constructed or substantially renovated residential property; resale homes are typically exempt. If your purchase is subject to GST, the tax is either included in the purchase price (and financed by your mortgage if applicable) or added on top and paid as part of your cash to close, depending on how the contract of purchase and sale is drafted. Verify whether your transaction is subject to GST and whether you may claim the GST New Housing Rebate with your BC lawyer, notary, or a licensed tax professional before completion.

Legal or notary fees for a standard residential purchase in BC commonly range from approximately $1,500 to $3,000 (as of 2026-07-27 — verify current), plus disbursements such as title searches, registration fees at the BC Land Title Office (Land Title Act, RSBC 1996, c. 250), and title insurance premiums. The exact amount depends on the complexity of the transaction, the lawyer's or notary's fee structure, and the property type. Request a written fee quote from your BC lawyer or notary early in the transaction so you can include the accurate amount in your cash-to-close budget.

Title insurance is a one-time premium policy that protects you and your lender against title defects, survey issues, fraud, and certain off-title risks not disclosed by a search of the BC Land Title registry (Land Title Act, RSBC 1996, c. 250). While not legally mandatory in British Columbia, most institutional mortgage lenders require lender's title insurance as a condition of financing, and owner's title insurance is strongly recommended by BC lawyers and notaries. The combined premium is typically paid at closing as part of your cash to close; verify the cost and coverage with your BC lawyer or notary.

Your BC lawyer or notary will provide written wire-transfer or bank-draft instructions several business days before the completion date, specifying the exact cash-to-close amount and the trust account details. Funds must be in the lawyer's or notary's trust account in time to complete the purchase on the scheduled completion date; electronic wire transfers are preferred for same-day cleared funds. Verify the delivery deadline, payment method, and account details directly with your lawyer or notary (never rely on emailed instructions without verbal confirmation, to guard against fraud), and ensure your financial institution can execute the transfer on time.

Yes. Your BC lawyer or notary prepares the draft Statement of Adjustments based on estimated property taxes, strata fees, and other adjustments; if actual tax notices or strata-fee statements differ, or if last-minute title or lien issues require additional payments, the final cash to close may increase or decrease. Changes may also occur if you add optional title-insurance endorsements, if interest adjustments shift, or if the completion date changes. Review any revised Statement of Adjustments immediately and confirm the final certified amount with your BC lawyer or notary before wiring funds.