Closing Costs When Buying in BC: Every Line Item, Explained

Written by Rob Visnjak, Personal Real Estate Corporation | Oakwyn Realty Ltd. | Published October 27, 2026

Closing costs are the bills you pay to complete a home purchase on top of the price itself. In BC, the biggest by far is property transfer tax, but there's a list of smaller items too: legal or notary fees, title insurance, a home inspection, property tax and strata fee adjustments, home insurance, and, on a new home, GST. Most of these can't be added to your mortgage, so you'll need the cash ready before completion day. This guide goes through every line item a BC buyer is likely to see, explains who sets each cost and when you pay it, and shows sample totals for a condo, a townhouse and a detached home. You'll also see where first-time buyers and buyers of new homes can save.

BC closing costs at a glance

Source: BC property transfer tax and CMHC premium rates as published. Fee ranges are Rob Visnjak planning estimates for the Lower Mainland, not quotes. Accessed October 27, 2026.

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The rule of thumb: budget 1.5% or more

Lenders usually want to see that you have about 1.5% of the purchase price available for closing costs, on top of your down payment. That's a minimum, not a ceiling. If you're not eligible for a property transfer tax exemption, closing costs on a BC home are often closer to 2% to 2.5% of the price, mostly because of the tax. Start with the 1.5% figure, then calculate the real number for the home you're buying.

Property transfer tax: the biggest line item

How it's calculated

BC's property transfer tax is charged when you register your ownership with the Land Title Office. 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 above $2,000,000
• A further 2% on the residential portion above $3,000,000

On an $800,000 home, that's $2,000 + $12,000 = $14,000.

Source: calculated from the BC property transfer tax rates.

First-time home buyer exemption

If you qualify as a first-time buyer, the first-time home buyer exemption removes the tax on homes priced at $500,000 or less. On homes between $500,000 and $835,000, it removes the tax on the first $500,000, a saving of $8,000. The exemption phases out between $835,000 and $860,000. You need to be a Canadian citizen or permanent resident, have lived in BC for 12 months (or filed two BC tax returns in the last six years), never have owned a principal residence anywhere, and move in within 92 days. My post on the first-time buyer PTT exemption covers the details.

Newly built home exemption

The newly built home exemption removes the tax on qualifying new homes up to $1,100,000, with a partial exemption up to $1,150,000. You don't have to be a first-time buyer, but you do need to live in the home as your principal residence.

The tax is paid in cash at completion

Your lawyer or notary collects the property transfer tax from you and pays it when they register the transfer. It can't be added to your mortgage. For more, see my main guide to property transfer tax.

Legal or notary fees

In BC, either a lawyer or a notary public can handle a standard residential purchase. Their job is to review the contract, order the title search, prepare the transfer and mortgage documents, hold and move the money in trust, pay the property transfer tax, register everything at the Land Title Office and calculate the adjustments.

What you'll see on the bill

• Professional fee: the lawyer's or notary's charge for the work. Many offer a flat fee for a standard purchase with one mortgage.
• Disbursements: out-of-pocket costs, such as title searches, Land Title Office registration fees for the transfer and mortgage, courier fees and trust administration fees.
• Taxes: GST at 5% and BC PST at 7% apply to legal services.

A complex purchase, such as a property with a second mortgage, a bare land strata or a trust arrangement, will cost more. Get a written estimate before you write an offer. My guide to finding a notary or lawyer in Langley explains how to choose one.

Title insurance

Title insurance protects you, and usually your lender, against problems with title, such as fraud, errors in the survey or work done without permits that didn't show up before you bought. Many BC lenders require either title insurance or an up-to-date survey certificate, and title insurance is usually the cheaper and faster option. It's a one-time premium, typically billed through your lawyer or notary.

Home inspection and other due diligence

A home inspection isn't legally required, but it's one of the best-spent dollars in the whole process. You pay the inspector directly, usually during your subject period and before you remove subjects. Depending on the property, you may also need:

• A sewer scope for older homes with clay or concrete drain lines.
• Septic and well tests for acreages and rural properties in places like South Langley and Aldergrove.
• An oil tank scan for older homes that may once have had oil heat.
• Strata document review for condos and townhouses: minutes, the depreciation report, bylaws and financial statements.

My post on home inspection costs in BC breaks down what each costs.

Appraisal

Lenders often order an appraisal to confirm the property is worth what you're paying. For insured mortgages, the lender or insurer often covers it, and some lenders use an automated valuation instead. If you pay it, it's usually a few hundred dollars. If the appraisal comes in below the purchase price, the lender may lend less, and you'd have to make up the difference in cash. That's one reason to keep a financing subject in your offer.

Adjustments on the statement of adjustments

The statement of adjustments, prepared by your lawyer or notary, divides certain costs between you and the seller as of the adjustment date. These can add to or reduce what you owe.

Property tax

In Langley and Surrey, property taxes are typically due in early July. If the seller has already paid the year's taxes and you complete on October 1, you'll reimburse the seller for the days from October 1 to December 31. On a home with $3,600 in annual taxes, that's about $910. If you complete before the taxes are paid, you may get a credit instead, and you'll pay the full bill yourself.

Strata fees

If the seller has paid the month's strata fee, you'll reimburse the portion for the days after the adjustment date. Your lawyer will also confirm, through the strata's Form F, that the seller's account is paid up.

Utilities and fuel

Some utilities, such as municipal water and sewer charges, are billed with property taxes or quarterly. Others, like a full oil or propane tank on a rural property, may be adjusted. Your lawyer will catch these.

Interest adjustment

If your mortgage's first payment date isn't exactly one month after completion, your lender may charge interest for the days in between. It may be paid at completion or added to the first payment.

Home insurance

Your lender will need proof of home insurance before releasing the mortgage funds. For a condo, you'll need your own policy covering your contents, improvements and the strata's deductible exposure. For a townhouse or house, the policy needs to cover the building as well. Arrange it before your subject removal, so you know the home is insurable at a reasonable price.

GST on new homes

Resale homes in BC are not subject to GST or PST. New homes are, at 5% of the price. On a $900,000 new townhouse, that's $45,000. Two rebates can bring it down:

• First-time buyer GST rebate: first-time buyers can get a rebate of up to $50,000 on new homes priced up to $1,000,000, phasing out to $1,500,000, for agreements signed from March 20, 2025. On that $900,000 townhouse, a first-time buyer could pay no GST at all.
• GST new housing rebate: a smaller, long-standing rebate for lower-priced new homes.

The builder's contract will say whether GST is included in the price or added. My posts on the first-time home buyer GST rebate and GST on new homes in BC cover the rules.

Mortgage insurance premium

With less than 20% down, you'll pay a mortgage insurance premium of 2.80% to 4.00% of the loan, plus 0.20% for an eligible 30-year amortization. Unlike the other items here, it's added to your mortgage rather than paid in cash, and BC charges no provincial sales tax on it. See my post on down payment requirements in BC for how the tiers work.

Sample closing cost totals

Source: property transfer tax calculated from BC rates (first-time buyer exemption applied to the condo). Other amounts are Rob Visnjak planning estimates for illustration, not quotes. Your numbers will differ.

The condo buyer saves $8,000 through the first-time buyer exemption. On the townhouse and the detached home, property transfer tax is more than three-quarters of the total.

When the cash leaves your account

Closing costs don't all hit on one day. Here's a typical timeline for a resale purchase:

Source: Rob Visnjak, typical BC resale timeline. Your contract dates will set the actual schedule.

Your lawyer or notary will send the final statement of adjustments a few days before completion, showing exactly how much you need to bring. Have the funds ready to transfer by wire or bank draft as they instruct. Transfers can take a day or more, so don't leave it until the last minute.

Presale and new construction: different timing, different costs

Buying a presale condo or townhouse changes the closing cost picture:

• Deposits are bigger and spread out. Presale deposits are often 10% to 20% of the price, paid in instalments. They're held in trust under the Real Estate Development Marketing Act. See my guide to presale deposits in BC.
• GST applies. New homes carry 5% GST, though the first-time buyer rebate can wipe it out on homes up to $1,000,000.
• The newly built home exemption may remove property transfer tax on homes up to $1,100,000.
• Developer charges. Some contracts pass on costs such as strata start-up contributions or utility connection fees. Read the disclosure statement.
• Completion can be years away. Your financing, and the rules, may change before you complete, so keep a buffer.

Five ways to lower your closing costs

1. Check every exemption. The first-time buyer and newly built home exemptions can save thousands, and the forms are filed with the transfer. Tell your lawyer early which ones you think apply.
2. Compare legal and notary quotes. Flat fees for standard purchases vary. Ask what's included in disbursements.
3. Time your completion date. The property tax adjustment depends on when you complete. Your lawyer can show how different dates change it.
4. Negotiate for the right items. In a slower market, you may be able to ask the seller to cover a repair, include appliances or adjust the price to offset costs. My guide to negotiating a house price in BC explains how.
5. Avoid surprise strata costs. Read the minutes and depreciation report before subject removal, so a special levy doesn't arrive after you move in.

Costs that catch buyers off guard

• Deposits aren't a closing cost, but they're cash. Your deposit, usually 5% or more, is due within 24 hours of acceptance and counts toward your down payment.
• The rescission fee. If you use your three-business-day rescission right, you'll owe the seller 0.25% of the price. On an $800,000 home, that's $2,000.
• Special levies. In a strata, a levy approved before completion can be the seller's or the buyer's responsibility, depending on the contract. Read the minutes and ask.
• Strata move-in fees set by the bylaws.
• The first repairs. Even a well-inspected home will need something in the first year.

FAQ

How much are closing costs in BC? Plan for at least 1.5% of the price. Without a property transfer tax exemption, 2% to 2.5% is more realistic for most homes.

Can I add closing costs to my mortgage? Generally no. Property transfer tax, legal fees and adjustments are paid in cash. Only the mortgage insurance premium is added to the loan.

Do I pay GST on a resale home in BC? No. GST applies to new and substantially renovated homes, not resale homes.

Who pays the real estate commission when I buy? In most BC sales, the seller pays the commission under their listing agreement. Buyers can confirm how their agent is paid before writing an offer.

Is there a land transfer tax in BC? BC's version is the property transfer tax. Langley and Surrey don't charge a separate municipal transfer tax.

When do I pay closing costs? Most are paid through your lawyer or notary a few days before completion. The inspection is paid when it's done.

Conclusion

Closing costs on a BC home start with property transfer tax, which can range from nothing for a first-time buyer's condo under $500,000 to $26,000 on a $1.4 million house. Add legal or notary fees, title insurance, an inspection, adjustments and moving, and the total is often 1.5% to 2.5% of the price. Check whether you qualify for the first-time buyer or new home exemptions, get a written legal estimate early, and keep cash beyond your down payment. Your lender will want to see it, and you'll want it on completion day. Before you start looking, get a mortgage pre-approval so you know both your price range and your cash needs.

What happens next: When you book a chat, I'll build a closing cost estimate for the kind of home you're considering, with the exemptions you qualify for, so you know the cash you need before you write an offer. There's no cost and no obligation. Book a no-pressure chat with Rob.

This article is general information based on publicly available rules and data as of October 2026. It isn't financial, legal, or tax advice. Fee ranges are planning estimates, not quotes, and tax rules and exemptions can change. Confirm the details with your lawyer or notary, lender and tax advisor before you buy. Rob Visnjak Personal Real Estate Corporation, Oakwyn Realty Ltd.