Closing Costs

Property Transfer Tax is levied under the BC Property Transfer Tax Act on virtually every property transfer registered in British Columbia. The rate is 1% on the first $200,000 of the fair market value, 2% on the portion between $200,000 and $3,000,000, 3% on the portion above $3,000,000, and an additional 2% applies to the residential portion of any value exceeding $3,000,000. PTT is one of the largest single closing costs a BC buyer will encounter and is payable at completion.

Yes. Under the BC Property Transfer Tax Act's First-Time Home Buyers' Program, eligible first-time buyers may receive a full PTT exemption on properties with a fair market value up to $835,000, with a partial exemption available on properties valued between $835,000 and $860,000. To qualify, the buyer must be a Canadian citizen or permanent resident, have never owned a principal residence anywhere in the world, and intend to occupy the home as their principal residence within 92 days of registration. Buyers who do not meet all criteria must pay the full PTT.

Under the BC Property Transfer Tax Act's Newly Built Home Exemption, eligible buyers of a newly constructed or substantially renovated home may receive a full PTT exemption on properties with a fair market value up to $1,100,000, with a partial exemption for properties valued between $1,100,000 and $1,150,000. The buyer must be a Canadian citizen or permanent resident and must intend to use the property as their principal residence. Unlike the First-Time Home Buyers' Program, this exemption is not restricted to first-time buyers.

GST at the federal rate applies to the purchase price of newly constructed or substantially renovated homes in BC, and is therefore a closing cost on such purchases; it does not apply to resale homes. Buyers of new homes may qualify for a federal GST New Housing Rebate if the purchase price and intended use meet Canada Revenue Agency criteria, which can partially offset this cost. Because GST is a federal tax administered by the CRA rather than a provincial charge, buyers should consult CRA guidance or a tax professional for current rebate thresholds and eligibility rules.

Buyers in BC must retain either a lawyer or a notary public to handle the legal aspects of a real estate closing, including title searches, document preparation, and registration of the transfer and mortgage at the Land Title Office. Legal and notary fees for a straightforward residential purchase commonly fall in the range of $1,200 to $2,000, though disbursements such as Land Title Office registration fees, courier charges, and tax certificates add to this total. Fees can vary significantly depending on the complexity of the transaction, the professional retained, and whether mortgage financing is involved.

At completion, the buyer and seller settle financial obligations that have been prepaid or accrued but not yet paid, such as annual property taxes or monthly strata fees under the Strata Property Act (SBC 1998, c. 43). If the seller has prepaid property taxes or strata fees beyond the completion date, the buyer reimburses the seller for the unused portion; conversely, if amounts are owing, they are credited to the buyer. These adjustments appear on the statement of adjustments prepared by the buyer's lawyer or notary and directly affect the net amount the buyer must bring to closing.

Title insurance is not legally mandated in BC but is widely recommended by lawyers and notaries as a cost-effective closing cost, typically ranging from roughly $150 to $400 for a one-time premium depending on the property value and insurer. It protects buyers and lenders against covered losses such as undisclosed title defects, fraud, survey errors, and certain off-title risks that a standard title search may not reveal. Because BC uses a Torrens land title system, certain protections exist under the Land Title Act, but title insurance provides additional coverage for matters outside that statutory assurance fund.

Mortgage default insurance — commonly provided by CMHC, Sagen, or Canada Guaranty — is required under federal mortgage regulations when a buyer's down payment is less than 20% of the purchase price on a property valued below the federally insured limit. The insurance premium is calculated as a percentage of the insured mortgage amount and is typically added to the mortgage rather than paid as a lump sum at closing, though provincial premium tax (currently 9% of the premium in BC under the Insurance Premium Tax Act) may be due at completion. Buyers should confirm the current premium tiers and provincial tax treatment with their mortgage lender and lawyer or notary.

Home inspection fees and appraisal fees are typically paid by the buyer and are generally treated as part of the overall closing cost budget, though they are often paid before the completion date rather than on closing day itself. A home inspection is not required by BC statute but is commonly recommended during the subject removal phase of a contract governed under the terms negotiated between the parties and consistent with BCFSA's guidance on buyer due diligence under the Real Estate Services Act. An appraisal is frequently required by the buyer's lender to confirm the property's market value before mortgage approval.

Under the BC Property Transfer Tax Act, an Additional Property Transfer Tax — commonly called the Foreign Buyer Tax — applies to transfers of residential property in designated regions of BC, including Metro Vancouver, to foreign nationals, foreign corporations, and taxable trustees. Consult the current BC Ministry of Finance guidance for the exact rate and the list of currently designated geographic areas, as these details are subject to legislative amendment. If this tax applies, it is payable at completion alongside standard PTT and can represent a substantial additional closing cost for affected purchasers.