Typical Closing Costs When Buying a Home in British Columbia

The purchase price is rarely the full amount you need on completion day. Closing costs can add a meaningful sum, including property transfer tax, which the person receiving title must pay.

This article lists the costs buyers commonly face in British Columbia, explains how property transfer tax works, and points to the exemptions that may reduce it.

This article covers the law of British Columbia.

Property transfer tax

Property transfer tax (PTT) is charged on the fair market value at these general rates: 1% on the portion up to $200,000, 2% on the portion above $200,000 up to $2,000,000, and 3% on the portion above $2,000,000. A further 2% applies to the residential value above $3,000,000, and for mixed-class property only the residential portion is counted.

The rates apply to portions of the value, so each rate only applies to the slice of the fair market value that falls within its band. To estimate your tax, split the value into those bands, apply each rate to its portion, and add the results. Whether an exemption applies can change the final figure, so it is worth confirming your numbers with your lawyer or notary.

The transferee, meaning the person receiving title, must pay the tax and file a return when applying to register the transaction. The registrar may refuse an application if there are reasonable grounds to believe the tax is unpaid or the return is incomplete or unfiled. The return is usually filed by your lawyer or notary, and because the tax is a closing cost, it is normally paid through them on completion.

Exemptions that may reduce the tax

First-time buyers must also have lived in BC for at least a year immediately before registration, or filed at least 2 income tax returns as a BC resident in the last 6 taxation years, and must never have received a first-time buyers' exemption or refund. If only some co-buyers qualify, only their ownership share is exempt.

To keep the newly built home exemption, you must move in within 92 days of registration and occupy the home as your principal residence for the rest of the first year. If a first-time buyers' exemption was not claimed at registration, a refund can be applied for from the first anniversary to 18 months after registration, using Form FIN 265.

Additional tax for some foreign buyers

Foreign nationals, foreign corporations and taxable trustees pay an extra 20% of the fair market value of their proportionate share of residential property in the Capital Regional District, Fraser Valley Regional District, Metro Vancouver, Regional District of Central Okanagan and Regional District of Nanaimo. It does not apply to properties on Tsawwassen First Nation treaty lands.

A BC Provincial Nominee can be exempt if they are a confirmed nominee at registration, use the property as a principal residence, and take title as an individual. The exemption can be claimed only once. Federal law also restricts non-Canadians from buying residential property in urban centres, with a $10,000 fine for contraventions, and the restriction was extended from January 1, 2025 to January 1, 2027.

GST, legal costs and adjustments

• GST on new homes: whether GST applies to a newly built or substantially renovated home depends on the facts of your purchase, so ask the builder for the exact treatment and confirm it with an accountant or lawyer.
• Federal first-time buyers' GST/HST rebate: eligible individuals could get a rebate of up to $50,000 on agreements with a builder entered on or after March 20, 2025, or owner-built homes started on or after March 20, 2025. It does not cover resale homes.
• Legal or notary costs: your lawyer or notary prepares and files the transfer and mortgage documents, and may charge disbursements as well. Notaries may draw instruments relating to property that are meant to be registered.
• Land title registration fees: these are set by the land title authority, so confirm the current amounts.
• Adjustments: how property taxes, strata fees and similar costs are shared between you and the seller depends on your contract of purchase and sale, so ask your lawyer or notary to explain the adjustments in your situation.
• Other items: title insurance, home insurance, an appraisal or inspection, and moving costs.

The CRA accepts applications for the first-time buyers' GST/HST rebate, and the usual application window is within two years of taking ownership or finishing construction. Confirm eligibility details with the CRA or an accountant.

Planning your closing budget

• Ask your lawyer or notary for a written estimate of closing costs before completion.
• Calculate PTT using the rates above, then check whether an exemption applies.
• Confirm whether GST applies if the home is new.
• Set aside funds for adjustments, which are finalized close to completion.
• Check the Province's property transfer tax page for any recent changes before you finalize your numbers.
• Keep a cash reserve for insurance, moving and immediate repairs.

Frequently asked questions