How Much Do I Need for Closing Costs in BC?

When buyers think about purchasing a home, the first number that comes to mind is usually the down payment. But that is only part of the story. In British Columbia, closing costs can add thousands of dollars on top of your purchase price. If you do not plan ahead, these expenses can catch you off guard.

Here is everything you need to know about closing costs in BC, with real examples based on today’s Vancouver market.

What Are Closing Costs?

Closing costs are the fees and expenses you need to pay in addition to your down payment when finalizing your purchase. These costs cover legal services, government fees, insurance, and inspections. In BC, buyers should budget between 2 and 4 percent of the purchase price.

For a $1 million home, that means anywhere from $20,000 to $40,000 in extra costs.

Major Closing Costs in BC

Property Transfer Tax (PTT)
This is the biggest cost most buyers will face. The tax is:
• 1% on the first $200,000
• 2% on the portion between $200,000 and $2 million
• 3% on the portion above $2 million

For a $1 million home, the PTT works out to $18,000. For a $1.1 million home, it jumps to $20,000.

Legal Fees and Disbursements
Hiring a lawyer or notary is required to register the title and handle paperwork. Expect $1,500 to $2,500 depending on complexity.

Home Inspection
An inspection typically costs $400 to $700, but it can save you from buying a property with hidden problems. This is one of the most valuable closing costs you will ever pay.

Appraisal Fee
If you are getting a mortgage, your lender may require an appraisal. This usually costs $300 to $500.

Title Insurance
Title insurance protects against defects in title and fraud. Cost is typically $200 to $400.

Adjustments
You may need to reimburse the seller for prepaid items like property taxes or strata fees. These vary depending on timing.

Optional but Recommended Costs

Property Survey
If you are buying a detached home, you may need a current survey. This can run $500 to $1,000.

Moving Expenses
Hiring movers or renting a truck is not technically a closing cost but is part of the total cash you will need.

First-Time Buyer Savings

The good news is that first-time buyers in BC may qualify for the First-Time Home Buyers’ Program. If you are purchasing a home under $500,000 you may be fully exempt from the Property Transfer Tax. Homes up to $525,000 may qualify for a partial exemption.

This program can save buyers tens of thousands of dollars.

Example: Closing Costs on a $1 Million Condo

Here is a sample breakdown:

• Property Transfer Tax: $18,000
• Legal Fees: $1,800
• Inspection: $500
• Appraisal: $400
• Title Insurance: $250
• Adjustments: $500

Total Closing Costs: $21,450

Conclusion: Plan Ahead and Avoid Surprises

In BC, closing costs are a significant part of buying a home. The key is planning ahead so you are not blindsided when it is time to finalize the deal.

If you want a personalized closing cost breakdown for your price point and neighborhood, contact me today. I will create a detailed estimate so you know exactly what to expect before you make an offer.