Closing Costs

Property Transfer Tax is a provincial tax payable under the Property Transfer Tax Act, RSBC 1996, c. 378, when you register title to real property in British Columbia. The general rates are 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, 3% on the portion between $2,000,000 and $3,000,000, and 5% on the portion above $3,000,000 (as of 2026-07-27 — verify current); an Additional Property Transfer Tax of 20% (as of 2026-07-27 — verify current) applies to foreign entities and taxable trustees under the Property Transfer Tax Act. Verify current rates and exemptions with a BC lawyer, notary, or licensed tax professional before acting.

Under the Property Transfer Tax Act, RSBC 1996, c. 378, and the Home Purchase Assistance Act, first-time home buyers who meet citizenship/permanent residence and occupancy requirements may be eligible for a full exemption on properties up to $835,000 (as of 2026-07-27 — verify current) and a partial exemption on properties between $835,000 and $860,000 (as of 2026-07-27 — verify current). The exemption is also available for newly built homes under $1,100,000 (as of 2026-07-27 — verify current) with partial relief up to $1,150,000 (as of 2026-07-27 — verify current). Verify current thresholds and eligibility criteria with a BC lawyer, notary, or the BC Ministry of Finance before relying on these figures.

Legal and notary fees in BC for residential real estate closings commonly range from $1,200 to $2,000 (as of 2026-07-27 — verify current), plus disbursements such as title searches, registration fees, and courier costs. These fees cover services such as reviewing the Contract of Purchase and Sale, conducting title due diligence, registering the transfer and mortgage under the Land Title Act, RSBC 1996, c. 250, and ensuring compliance with BC statutes. Verify current fee quotes and the scope of services with your BC lawyer or notary before engaging them.

Yes; under the Excise Tax Act (federal), Goods and Services Tax (GST) of 5% (as of 2026-07-27 — verify current) applies to the purchase price of newly built or substantially renovated residential properties in British Columbia. Eligible purchasers may qualify for a federal GST New Housing Rebate if the fair market value is $450,000 or less (as of 2026-07-27 — verify current), with a partial rebate available between $450,000 and $350,000 (as of 2026-07-27 — verify current); BC also offers a provincial New Housing Rebate that may offset part of the provincial portion (where applicable). Verify current rebate thresholds and eligibility with a BC lawyer, notary, or licensed tax professional before closing.

Title insurance is a policy that protects you against defects in title, fraud, survey and zoning issues, and certain unpaid liens not disclosed by the title search conducted under the Land Title Act, RSBC 1996, c. 250. While not legally mandatory in BC, most lenders require title insurance as a condition of mortgage financing; the one-time premium typically ranges from $200 to $400 (as of 2026-07-27 — verify current) depending on purchase price. Verify the need for title insurance and current premium quotes with your BC lawyer, notary, or lender before closing.

Property tax and strata fee (condominium maintenance fee) adjustments are prorated amounts owed to the seller if the seller has prepaid these expenses beyond the completion date; these adjustments are calculated in the Statement of Adjustments prepared by the buyer's lawyer or notary in accordance with the Contract of Purchase and Sale. The buyer reimburses the seller for the prepaid portion from the completion date to the end of the prepaid period; under the Strata Property Act, SBC 1998, c. 43, the seller remains liable for strata fees owing before the completion date. Verify the exact adjustment amounts in your Statement of Adjustments with your BC lawyer or notary before closing.

A home inspection is not legally required in BC but is strongly recommended to identify defects, safety issues, and required repairs before you remove the subject-to-inspection condition in your Contract of Purchase and Sale. Home inspection fees typically range from $400 to $700 (as of 2026-07-27 — verify current) depending on the size and age of the property. Verify current inspection fees and the scope of inspection services with a qualified home inspector before engaging them.

Mortgage default insurance (also known as CMHC insurance, offered by Canada Mortgage and Housing Corporation and other approved insurers) is required under federal lending regulations when your down payment is less than 20% of the purchase price (as of 2026-07-27 — verify current). The insurance premium ranges from approximately 0.60% to 4.50% of the mortgage amount (as of 2026-07-27 — verify current) depending on the loan-to-value ratio and is typically added to your mortgage principal and financed over the amortization period, though it is a closing cost. Verify current premium rates, eligibility, and payment options with your lender or a licensed mortgage broker before closing.

An appraisal fee (typically $300 to $500 in BC as of 2026-07-27 — verify current) is charged by a licensed or certified appraiser to provide an independent estimate of the property's fair market value; lenders require an appraisal to confirm the property value supports the requested mortgage amount and protects their security interest under the Land Title Act, RSBC 1996, c. 250. The appraisal is ordered by the lender but paid by the borrower as a closing cost. Verify current appraisal fees and lender requirements with your lender or mortgage broker before closing.

Total closing costs in British Columbia typically range from 2% to 4% of the purchase price (as of 2026-07-27 — verify current), including Property Transfer Tax (subject to any exemptions under the Property Transfer Tax Act, RSBC 1996, c. 378), legal or notary fees, title insurance, home inspection, appraisal, GST on new construction (if applicable), mortgage default insurance (if down payment is less than 20%), and property tax and strata fee adjustments. The exact amount depends on the purchase price, property type, mortgage structure, and your eligibility for exemptions or rebates. Verify your specific closing cost estimate with your BC lawyer, notary, lender, and licensed tax professional before completing your purchase.