Closing Costs in BC (2026): The Full Buyer Cost Guide
By Alex Dunbar, REALTOR · REAL Broker BC Ltd. · Updated April 2026 · 9min read
Watch the full video above, or read the 2026 BC-focused written version below.
How much are closing costs when buying a home in BC? Plan on 2% to 4% of the purchase price for a resale home, and 3% to 6% for pre-sale or new construction (because of GST). On an $850,000 Surrey townhome, that is roughly $17,000 to $34,000 on top of your down payment. The single biggest line item is BC Property Transfer Tax. The other 7 line items below add up faster than most first-time buyers expect. Use this guide to budget before you write your first offer.
AT A GLANCE
BC Closing Cost Numbers That Matter
TYPICAL TOTAL
2% to 4%
Of the purchase price on a resale home. Pre-sale or new construction runs 3% to 6% because of GST.
PTT FORMULA
1% / 2% / 3% / 5%
First $200k at 1%, $200k to $2M at 2%, $2M to $3M at 3%, above $3M at 5%. First-time buyer + new build exemptions exist.
$850K SURREY EXAMPLE
~$22,000
Resale townhome, no first-time buyer exemption. PTT $15k + legal $1.5k + adjustments $3k + insurance, inspection, strata fees.
PTT thresholds and exemption caps are reviewed annually by the BC Government. Confirm current rates with your real estate lawyer or notary before completion.
In This Guide
8 Closing Costs + 4 Reality Checks
What Closing Costs Actually Are
"Closing costs" is a catch-all term for every dollar a BC buyer pays on or around the day of completion that is not the down payment or the mortgage. Some are paid to the BC Government (Property Transfer Tax). Some go to your real estate lawyer or notary. Some go to the seller as adjustments. Some are paid to third parties: home inspector, title insurer, strata corporation.
The two facts that catch first-time buyers off-guard:
They are paid in cash, not financed: closing costs cannot be rolled into the mortgage (with one small exception, mortgage default insurance). Lenders require proof of these funds at the same time as your down payment, in the form of a closing cost statement. If you have $170,000 saved for a 20% down payment on $850,000, but no separate $20,000 for closing costs, you cannot complete the deal.
They are due before completion, not after: funds are wired to your lawyer 1 to 2 business days before the completion date. The lawyer holds them in trust, then disburses on the day of close. Last-minute wires are how deals fall apart on the morning of completion. Send the funds early.
The 8 Closing Costs in BC, Line by Line
In rough order of size, here are the 8 line items that show up on a BC residential closing statement. Costs 1 to 5 hit almost every transaction. Cost 6 depends on your mortgage structure. Cost 7 hits everyone. Cost 8 only applies to stratas.
1. BC Property Transfer Tax (PTT)
Typical range: $2,000 to $50,000+
What it is: A one-time tax paid to the BC Government on the day of completion.
How it works: PTT is by far the largest single line item in a BC closing. The formula is tiered: 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. On an $850,000 home, the math is $200,000 x 1% + $650,000 x 2% = $15,000.
What to watch for: First-time buyer + Newly Built Home exemptions can fully or partially waive PTT for qualifying buyers. See the dedicated FTHB section below.
2. GST on New Construction
Typical range: 5% of price (rebates apply)
What it is: Federal 5% GST on new builds and substantially renovated homes.
How it works: Resale homes are GST-exempt. New construction (pre-sale, brand-new completed inventory, or substantially renovated) is hit with a 5% GST on the purchase price. The federal GST New Housing Rebate refunds 36% of the GST paid (up to a $6,300 maximum) on homes priced at $350,000 or less, with a sliding partial rebate up to $450,000. Above $450,000, no rebate.
What to watch for: Most Fraser Valley pre-sales fall above the $450,000 cap, so the full 5% GST applies. On a $750,000 pre-sale, that is $37,500 in GST alone. See the GST rebate guide for the full playbook.
3. Legal or Notary Fees
Typical range: $1,200 to $1,800 + $400 to $700 disbursements
What it is: Your real estate lawyer or notary handles the conveyance.
How it works: In BC, residential transfers can be handled by either a lawyer or a notary public. Notaries are typically $200 to $400 cheaper for a clean residential closing. Lawyers are worth the premium when the transaction has any complexity: estate, divorce, assignment, holdback, or commercial element.
What to watch for: Disbursements (Land Title registration, title search, BC Online charges, courier, title insurance premium) typically add $400 to $700 on top of the base fee. Always ask for an all-in quote, not just the legal fee.
4. Title Insurance
Typical range: $250 to $400 (one-time)
What it is: A one-time premium that protects against title defects, fraud, and survey issues.
How it works: Not legally required in BC, but most lenders now require it as a mortgage condition. The premium is a one-time charge, paid through your lawyer or notary at closing. Coverage lasts as long as you own the home. On a strata, it also covers some internal lot-line issues.
What to watch for: Refusing title insurance usually triggers extra survey and title-verification work by your lawyer, which raises the legal bill more than the insurance would have cost. Net cost of skipping is rarely worth it.
5. Home Inspection
Typical range: $500 to $900
What it is: A pre-completion physical inspection by a licensed inspector.
How it works: A standard inspection runs 2 to 4 hours and produces a written report covering structure, roof, electrical, plumbing, HVAC, exterior, and major appliances. Strata inspections are typically cheaper because the inspector covers only the unit interior plus visible building exterior, not the full envelope.
What to watch for: Inspection happens during the subject-removal window, usually 5 to 10 days after offer acceptance. If material issues surface, your subjects let you renegotiate price, request repairs, or walk. Skipping inspection on a resale to win a multiple-offer is a real-money risk, not a fee saved.
6. Mortgage-Related Fees
Typical range: $0 to $30,000 (depends on insurance + appraisal)
What it is: Default insurance, appraisal, and broker fees tied to your mortgage.
How it works: Three sub-fees: (a) Mortgage default insurance (CMHC, Sagen, Canada Guaranty) is required if your down payment is less than 20%. The premium is 2.8% to 4.0% of the mortgage amount and is added to the principal automatically. PST on that premium (7% in BC) IS due on closing in cash. (b) Appraisal $300 to $500, sometimes covered by the lender or broker. (c) Broker fee $0 on most A-lender deals (paid by the lender), 1% to 2% on B-lender or alternative deals.
What to watch for: If you are putting 20% or more down and using a major Canadian bank or A-lender broker, the mortgage-related cash cost at closing is usually under $500. If you are at 5% to 10% down, expect $1,000 to $3,000 in PST on the default insurance premium.
7. Adjustments at Closing
Typical range: $1,000 to $5,000+
What it is: Reimbursing the seller for prepaid property tax and strata fees.
How it works: Property tax in BC is paid annually for the calendar year, usually due on July 2. If the seller has already paid the full year and you complete on May 1, you owe them back the May to December portion at closing. Same logic applies to strata fees prepaid into the next month, and any prepaid utilities still in the seller's name.
What to watch for: Adjustments work both ways. If property tax has not yet been paid for the current year, the seller credits you their portion. Your lawyer calculates this on the Statement of Adjustments before completion. On an $850,000 Surrey home with $4,200/year property tax completing mid-summer, expect a $1,500 to $3,000 adjustment.
8. Strata Move-In + Form B Fees
Typical range: $200 to $500 (strata only)
What it is: One-time charges from the strata corporation when you take possession.
How it works: Most BC stratas charge a non-refundable move-in fee of $100 to $300, plus a Form B / Form F preparation fee of $35 to $50 each ($35 maximum each is set by the Strata Property Act). Some buildings also collect a $1,000 to $2,000 refundable move-in damage deposit, returned after a walkthrough.
What to watch for: Detached homes, half-duplexes, and bare-land non-strata properties have no move-in fees. If you are buying a strata, your lawyer collects these on completion through the management company.
Real-World Example: $850,000 Surrey Townhome
Concrete numbers for a typical Fraser Valley resale closing. Buyer is putting 20% down ($170,000), no first-time buyer exemption, completing mid-summer.
SAMPLE CLOSING STATEMENT
| BC Property Transfer Tax | $15,000 |
| Legal Fees + Disbursements | $1,800 |
| Title Insurance | $300 |
| Home Inspection | $650 |
| Property Tax Adjustment | $2,400 |
| Strata Move-In + Form B Fee | $300 |
| Mortgage Appraisal (Lender-Covered) | $0 |
| Total Cash at Closing | ~$20,450 |
2.4% of the purchase price. Numbers will vary by lender, lawyer, completion date, and strata.
If the same buyer were a qualifying first-time buyer with the property under the FTHB exemption threshold, the PTT line drops to $0 and total closing costs land closer to $5,500. That is the difference an exemption makes.
First-Time Buyer Relief in BC
Three programs reduce closing costs for qualifying BC buyers. They cannot all be stacked.
First-Time Home Buyers (FTHB) PTT exemption: full PTT exemption on properties up to $500,000, with a partial exemption sliding up to $835,000 (verify current threshold with your lawyer or the BC Government page). Eligibility: Canadian citizen or permanent resident, BC resident for the past 12 months, never owned a home anywhere, must occupy the property as principal residence within 92 days.
Newly Built Home exemption: waives PTT on qualifying new construction up to $1,100,000 (verify current cap). Available to repeat buyers, not just first-time. Must occupy as principal residence. Useful on Fraser Valley pre-sales priced below the cap.
GST New Housing Rebate: federal rebate of 36% of GST paid (up to $6,300) on new construction priced at $350,000 or less, sliding partial rebate to $450,000. Above $450,000 you pay full GST with no rebate, which is most Fraser Valley pre-sales today.
Common Mistakes to Avoid
- Confusing down payment with closing costs: they are 2 separate buckets. Your lender wants to see proof of both, separately, before funding the mortgage. Saving a 20% down payment but having $0 left for closing means you cannot complete.
- Forgetting GST on pre-sale or new construction: 5% on the purchase price is a $30,000 to $50,000 hit on a typical Fraser Valley pre-sale. Many buyers see only the deposit and assignment fees in the disclosure, miss the GST, and run short at closing.
- Wiring closing funds the morning of completion: wires can take hours, banks can flag them for review, and a delay of even 30 minutes past the lawyer's funding deadline can collapse the deal. Send the wire 1 to 2 business days early.
- Skipping title insurance to save $300: the lawyer compensates with extra survey and title-verification work and the legal bill grows. Net savings are usually negative.
- Not asking the seller for an estoppel-style adjustment summary: a clear Statement of Adjustments from your lawyer 3 to 5 days before completion lets you spot a wrong property tax credit, missing strata adjustment, or duplicate utility charge. Reviewing late means inheriting the error.
- Assuming the FTHB exemption applies automatically: the exemption has to be claimed on the Property Transfer Tax Return at closing. Your lawyer or notary files it, but you have to confirm it during file review. Missing the claim means writing a $5,000 to $15,000 cheque the BC Government does not actually owe.
Frequently Asked Questions
How much should I budget for closing costs in BC?
Plan on 2% to 4% of the purchase price for resale, and 3% to 6% for pre-sale or new construction (because of GST and developer assignment fees). On an $850,000 Surrey townhome, that is $17,000 to $34,000 over and above your down payment. The single largest line item is BC Property Transfer Tax. Title insurance, legal fees, adjustments, and strata move-in fees fill out the rest.
What is the BC Property Transfer Tax (PTT) and how is it calculated?
PTT is a one-time tax paid to the BC Government on the day of completion. The standard formula is 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. On an $850,000 home that is $2,000 + $13,000 = $15,000. PTT is by far the biggest single line item in any BC closing.
Do first-time buyers in BC get any closing-cost relief?
Yes. The BC First-Time Home Buyers (FTHB) program fully exempts PTT on properties up to $500,000, with a partial exemption sliding up to $835,000 (2024 update, verify current thresholds). On a new construction purchase under $1,100,000, the Newly Built Home exemption can also waive PTT. These two cannot be stacked, so most first-time buyers in the Fraser Valley pick whichever saves more. There is also a federal First-Time Home Buyer Incentive plus the GST New Housing Rebate on eligible new builds.
Are closing costs different on a pre-sale vs resale?
Yes, materially. Pre-sale or new construction adds 5% GST on the purchase price (partially rebated below $450,000, fully rebated below $350,000), developer assignment fees if you assign the contract, and often a higher PTT bill because the price includes GST in the base. Resale homes have no GST. Pre-sale closing costs typically run 4% to 6% of price. Resale runs 2% to 4%.
Can I roll closing costs into my mortgage?
Most of them, no. Closing costs in BC must be paid out of your own funds on or before completion. Lenders require proof of these funds (a "closing cost statement") at the same time as the down payment. The few exceptions: high-ratio mortgage default insurance (CMHC, Sagen, Canada Guaranty) is added to the mortgage principal automatically, and some lenders offer a "cash-back" mortgage where the rate is bumped slightly in exchange for 1% to 5% of the mortgage paid back in cash on closing.
When are closing costs paid?
Funds are wired or delivered by bank draft to your real estate lawyer or notary 1 to 2 business days before completion. Your lawyer holds them in trust, then disburses on the completion date. PTT is paid the same day as a transfer through the Land Title and Survey Authority. If your funds arrive late, the deal can collapse, so do not leave the wire to the morning of completion.
Do I need title insurance in BC?
It is not legally required in BC, but most lenders now require it as a condition of the mortgage. Title insurance is a one-time premium, usually $250 to $400 on a residential purchase, that protects against title defects, fraud, and survey issues. On a strata it also covers some internal lot-line issues. Refusing it usually means a higher legal bill because the lawyer has to do extra survey and title verification, so the net cost of skipping is rarely worth it.
What are typical legal or notary fees in BC?
For a standard residential purchase in BC, expect $1,200 to $1,800 in legal or notary fees, plus disbursements of $400 to $700 (Land Title registration, title search, courier, BC Online charges, title insurance). Notaries are typically $200 to $400 cheaper than lawyers for a clean residential closing. Use a lawyer if your transaction has any complexity: estate, divorce, assignment, or commercial elements.
Buying in Surrey, Langley, or Maple Ridge?
I'll walk you through your closing-cost budget before you write your first offer.
15-minute call, no pressure. We map your purchase price band, check FTHB eligibility, and pencil out total cash needed at completion. Or download my free Buyer's Guide for the full prep checklist.
Alex Dunbar Personal Real Estate Corporation
REAL Broker BC Ltd. | Living in the Lower Mainland
I help Fraser Valley buyers think clearly about closing costs BEFORE writing an offer. If you're looking at Surrey, Langley, or Maple Ridge resale or pre-sale, let's pencil out the full cash needed at completion together so there are no surprises.
Featured Guides
BC Property Transfer Tax thresholds, federal GST rebate caps, and exemption rules change. Verify current rates with your real estate lawyer, notary, or the BC Government before completion. This article is educational and does not constitute legal, tax, or financial advice.
Categories
Recent Posts
GET MORE INFORMATION
