Disclaimer: Nothing in this article constitutes legal advice, nor does it establish a solicitor-client relationship between the reader and Alpine Legal Services. Tax rates and thresholds referenced are current as of October 2026. Always confirm current figures with your lawyer.
Your down payment is not the only cash you need to buy a home in British Columbia. Closing costs cover the taxes, fees, and adjustments that come due on completion day, and for many buyers they add up to more than expected. Property transfer tax alone is often more than $10,000 on a typical Fraser Valley home.
Below we break down the closing costs BC buyers should plan for, which ones you may be able to reduce, and how your lawyer or notary pulls it all together on the Statement of Adjustments.
What Are Closing Costs in BC?
Closing costs are the amounts you pay on top of the purchase price to complete a home purchase. Some are taxes set by the province or federal government. Some are fees for services like the home inspection or legal work. Others are adjustments between you and the seller for things like property taxes and strata fees that have been prepaid.
Most of these are paid through your lawyer or notary’s trust account just before completion, so you need the funds ready a few days ahead. Your lender will not usually add them to the mortgage.
Property Transfer Tax
Property transfer tax is usually the biggest closing cost in BC. It is calculated on the fair market value of the property at these rates.
- 1% of the fair market value up to and including $200,000
- 2% of the fair market value over $200,000 and up to and including $2,000,000
- 3% of the fair market value over $2,000,000
- A further 2% on the residential portion of the value over $3,000,000
On a $750,000 home, that works out to $2,000 on the first $200,000 plus $11,000 on the next $550,000, for a total of $13,000.
Two exemptions can cut that bill. The first-time home buyers’ exemption gives a full exemption on the first $500,000 of value for homes with a fair market value of $835,000 or less, with a partial exemption up to $860,000, saving up to $8,000. The newly built home exemption gives a full exemption for newly built homes with a fair market value of $1,100,000 or less, with a partial exemption up to $1,150,000. Both have residency and other conditions. Our guides to property transfer tax in BC and the first-time buyer PTT exemption go through the details.
GST on New Homes
If you buy a newly built home or a pre-sale, 5% GST usually applies on top of the price. Resale homes are generally GST-free.
First-time buyers may get relief. The federal first-time home buyers’ GST rebate can remove the full GST on an eligible new home valued up to $1 million, with a reduced rebate between $1 million and $1.5 million and nothing at $1.5 million or more. You have to be at least 18, a Canadian citizen or permanent resident, and not have lived in a home you or your spouse owned in the current or previous four calendar years. Check your builder’s contract carefully, because it should say whether the price includes GST and who claims the rebate.
Legal Fees and Disbursements
Your lawyer or notary reviews the contract, runs the title search, prepares the transfer and mortgage documents, handles the money through their trust account, and registers everything at the Land Title Office. Their bill has two parts. Legal fees are the charge for their work. Disbursements are the out-of-pocket costs they pay on your behalf, such as Land Title Office registration fees, search fees, and courier costs.
Ask for a written quote that lists fees and disbursements separately before you sign anything. Our guide to how much a real estate lawyer costs in BC explains what affects the price.
Title Insurance
Most lenders in BC require title insurance on a purchase, and many buyers choose it even when they pay cash. It protects against problems like title fraud, survey issues, and certain zoning or building permit defects. It is a one-time premium paid on closing. Our article on title insurance in BC covers what it does and does not cover.
Adjustments on Completion Day
Adjustments balance out costs the seller has already paid for a period after you take over. If the seller prepaid the year’s property taxes, you reimburse them for the days after completion. Strata fees, utilities on some properties, and rental deposits on a tenanted home can be adjusted the same way. Your lender may also charge an interest adjustment if your mortgage starts partway through a payment period.
All of these show up on the Statement of Adjustments your lawyer prepares. Our guide to closing day adjustments in BC explains each line.
Other Costs to Budget For
- A home inspection before you remove subjects
- An appraisal, if your lender requires one and does not cover it
- Mortgage default insurance if your down payment is under 20%, which is usually added to the mortgage rather than paid in cash
- Home insurance, which your lender will want confirmed before completion
- A Form B information certificate and strata documents if you are buying a strata unit
- Moving costs, utility hookups, and any immediate repairs
How Much Should You Set Aside?
It depends heavily on the price, whether the home is new or resale, and whether you qualify for exemptions. Property transfer tax is the line that moves the most, so start by working out your PTT using the rates above, then add GST if the home is new, plus legal fees, title insurance, inspection, and a buffer for adjustments. Your lawyer or notary can give you a firm number once they have your contract and lender instructions.
FAQ About Closing Costs in BC
When do I pay closing costs in BC?
Most closing costs are paid to your lawyer or notary a few days before completion so they can be held in trust and paid out on completion day. Inspection and appraisal fees are usually paid earlier, directly to the provider.
Can closing costs be added to my mortgage?
Generally no. Property transfer tax, legal fees, and adjustments are paid in cash. Mortgage default insurance premiums are the main exception, as they are usually added to the mortgage.
Do first-time buyers pay property transfer tax in BC?
Many first-time buyers pay less or none. As of October 2026, the exemption fully covers the first $500,000 of value for homes valued at $835,000 or less, and a partial exemption applies up to $860,000.
Does the seller pay any closing costs in BC?
Yes. Sellers pay their own legal fees, real estate commission, mortgage payout and any prepayment penalty, and their share of adjustments. Property transfer tax is paid by the buyer.
Plan Your Closing Costs With Alpine Legal
Alpine Legal Services is a team of lawyers and notaries public helping buyers across Chilliwack, Abbotsford, Langley, and the Fraser Valley understand their closing costs before completion day. We review your contract, confirm which exemptions apply, and walk you through your Statement of Adjustments line by line, with a written quote upfront.
Contact Alpine Legal to plan your purchase, or learn more about our purchase of property services.
Reviewed by Shanal Prasad, Lawyer, Notary Public, and Chartered Professional Accountant. Shanal is the founder of Alpine Legal Services and has helped hundreds of Fraser Valley families and individuals with their real estate transactions.
