Updated August 2026

You found the home. Your offer was accepted. Your mortgage is approved.

Then the additional expenses start appearing.

The purchase price is only one part of what it costs to buy a home in British Columbia. Property Transfer Tax, legal fees, inspections, insurance and closing adjustments can add thousands of dollars to the amount you need before receiving the keys.

The quick answer: How much are closing costs in BC?

In addition to your down payment, a BC homebuyer should generally keep a separate closing-cost reserve equal to at least 2% of the purchase price—and potentially considerably more when purchasing a new home, rural property or strata property.

Your actual costs will depend on:

• The purchase price
• Whether the home is new or resale
• Whether you qualify for a tax exemption
• The size of your down payment
• Whether the property uses a well or septic system
• Whether the home belongs to a strata
• Your lender’s requirements
• The property’s location and insurability

Here are the major expenses to investigate before removing your subjects.

BC homebuying costs at a glance

These are planning estimates—not fixed fees. Always request quotes based on the specific property and transaction.

1. Your down payment

The down payment is normally the largest amount of cash required when buying a home.

Canada’s current minimum down-payment requirements are:

• 5% on homes priced at $500,000 or less
• 5% on the first $500,000 and 10% on the portion above $500,000 for homes priced between $500,000 and $1.5 million
• 20% on homes priced at $1.5 million or more

For example, the minimum down payment on an $800,000 home is $55,000:

• 5% of the first $500,000: $25,000
• 10% of the remaining $300,000: $30,000

Your lender may require a larger down payment depending on your income, credit, the property type or the mortgage program. Review the current requirements through the Financial Consumer Agency of Canada.

2. The deposit

The deposit is not an additional charge—it normally forms part of your down payment—but buyers must have the money available much earlier.

The amount and deadline are written into the Contract of Purchase and Sale. Although deposits of approximately 5% are common in many BC transactions, there is no universal amount that applies to every purchase.

For example, if you provide a $40,000 deposit and your total down payment is $80,000, the remaining $40,000 would generally be delivered through your lawyer or notary before completion.

Never assume that a mortgage preapproval means your lender is providing the deposit. Buyers usually need access to those funds independently.

3. BC Property Transfer Tax

Property Transfer Tax, commonly called PTT, is one of the largest closing costs for many British Columbia buyers.

The general rates are:

• 1% on the first $200,000
• 2% on the portion between $200,000 and $2 million
• 3% on the portion above $2 million
• An additional 2% on the residential portion above $3 million

Here are several simplified examples:

The tax is generally calculated using the property’s fair market value, which may not always be identical to the purchase price. You can review the official BC Property Transfer Tax rules.

Do first-time homebuyers pay Property Transfer Tax in BC?

Eligible first-time buyers purchasing a qualifying principal residence valued at $835,000 or less may receive an exemption on the first $500,000 of value, saving up to $8,000.

A reduced exemption may be available when the property is valued above $835,000 but below $860,000.

Eligibility also depends on factors including residency, citizenship or permanent-resident status, previous homeownership, property size and intended use. Review the complete BC First Time Home Buyers’ Program before assuming you qualify.

Newly built home exemption

Qualifying purchasers of a newly built principal residence may receive a full Property Transfer Tax exemption when the fair market value is $1.1 million or less. A partial exemption may be available above $1.1 million and below $1.15 million.

This exemption has its own property and occupancy requirements. It is different from the federal GST rebate.

4. GST on new or substantially renovated homes

Most ordinary resale homes are not subject to GST. However, GST may apply to:

• Newly constructed homes
• Presale condominiums and townhomes
• Homes that have been substantially renovated
• Certain vacant-land purchases
• Some properties used for short-term rentals or commercial purposes

GST in British Columbia is generally 5%. On a $900,000 new home, that could represent $45,000 before any applicable rebates.

Always confirm whether GST is included in the advertised price or must be added. The answer can materially change the cash required at completion.

New first-time homebuyer GST rebate

Eligible first-time buyers may now recover up to 100% of the GST paid on a qualifying new home valued at $1 million or less, to a maximum rebate of $50,000.

The rebate is gradually reduced between $1 million and $1.5 million. No rebate is available at or above $1.5 million.

Eligibility, construction and purchase-agreement dates matter. Check the current CRA First-Time Home Buyers’ GST/HST Rebate and obtain professional tax advice for your transaction.

5. Mortgage default insurance

If your down payment is below 20%, you will generally require mortgage default insurance.

This insurance protects the lender—not the buyer—if the mortgage goes into default. The premium is often added to the mortgage rather than paid entirely in cash, but it increases both your mortgage balance and the interest you pay.

Standard premiums commonly range from approximately 2.8% to 4% of the mortgage amount, depending on the loan-to-value ratio.

For example, on a $750,000 purchase with a 10% down payment:

• Purchase price: $750,000
• Down payment: $75,000
• Mortgage before insurance: $675,000
• Approximate premium at 3.1%: $20,925
• Approximate mortgage after premium: $695,925

Use the official CMHC mortgage insurance calculator and speak with your lender or mortgage broker for an accurate figure.

6. The lender’s appraisal

Your lender may require an appraisal to confirm that the property provides sufficient security for the mortgage.

An appraisal commonly costs several hundred dollars. Some lenders cover it, while others charge the buyer.

This can become especially important when:

• The home receives multiple offers
• The purchase price is considerably above recent comparable sales
• The property is rural or unusual
• The home includes multiple dwellings
• A secondary suite is being used to qualify for financing

If the appraisal comes in below the purchase price, the lender may finance the mortgage using the lower appraised value. The buyer could then need a larger down payment to cover the difference.

7. The home inspection

A professional home inspection commonly costs between a few hundred dollars and more than $1,000, depending on the home’s age, size and complexity.

It can help identify visible concerns involving:

• Roofing
• Plumbing
• Electrical systems
• Heating and cooling
• Foundations
• Moisture
• Attics and crawl spaces
• Windows, doors and exterior drainage

A standard inspection cannot uncover every hidden defect, but it can reveal problems that affect your decision, negotiations or future repair budget. The BC Financial Services Authority recommends accounting for professional inspection costs when budgeting.

8. Specialized inspections and rural-property due diligence

Buying an acreage or rural home in the Okanagan may require more investigation than purchasing a conventional city property.

Depending on the property, buyers may want to budget for:

• Septic inspection and pumping
• Well-flow testing
• Water-quality testing
• Wood-burning appliance inspection
• Survey or property-line review
• Pool and hot-tub inspection
• Sewer-line scope
• Environmental assessment
• Agricultural Land Reserve or zoning research
• Verification of unauthorized or non-conforming dwellings

These services may add hundreds or even thousands of dollars to due diligence. However, discovering a failing septic system or unreliable water supply after completion can be far more expensive.

9. Legal or notary fees

A BC lawyer or notary typically handles the transfer of funds, mortgage registration and change of title.

The final cost depends on the complexity of the transaction, but buyers should often budget approximately $1,500 to $3,000 for professional fees, taxes and disbursements.

The amount may increase when the transaction involves:

• Multiple mortgages
• Private financing
• A strata property
• A presale assignment
• Non-resident parties
• Unusual title restrictions
• Additional legal review

Request a written quote early and ask what is included.

10. Title insurance and registration costs

Your legal account may include Land Title Office registration expenses, title searches and title insurance.

Title insurance can provide protection against certain title-related risks, such as fraud, defects in title or issues that were not discovered during the standard title search. Coverage and exclusions vary, so buyers should review the policy with their lawyer or notary.

These costs may be included within your legal quote or listed separately.

11. Property-tax, utility and strata adjustments

The seller and buyer are responsible for certain expenses only during the portion of the year in which each owns the property.

Your lawyer or notary calculates these adjustments at completion.

For example, if the seller has already paid the full year’s property taxes, the buyer may reimburse the seller for the portion covering the buyer’s ownership period. Adjustments may also involve:

• Municipal utilities
• Strata fees
• Rental income
• Fuel remaining in a tank
• Other prepaid or outstanding property expenses

These are not penalties or additional taxes. They divide existing expenses between the parties based on the completion date.

12. Home insurance and strata expenses

Most lenders require proof of acceptable property insurance before releasing mortgage funds.

Insurance premiums depend on the home, location, replacement cost, previous claims and available coverage. In the Okanagan, wildfire exposure can affect pricing and whether a new policy can be bound during an active wildfire.

Buyers should begin obtaining insurance quotes before removing their financing and insurance conditions—not the day before completion.

When buying a condo or townhome, also investigate:

• Monthly strata fees
• Move-in fees
• Parking or storage charges
• Current special levies
• Approved future levies
• Insurance deductibles
• The depreciation report
• The strata’s contingency reserve fund

A low monthly strata fee is not automatically a bargain if the building has delayed maintenance or an underfunded reserve.

13. Moving, utility setup and immediate repairs

The expenses do not stop once the title transfers.

Your first month of ownership could include:

• Movers or truck rental
• Utility connection charges
• Internet installation
• Rekeying or replacing locks
• Cleaning
• Window coverings
• Appliances
• Furniture
• Landscaping equipment
• Immediate repairs
• Renovations
• Emergency savings

Try not to use every available dollar for the purchase. Keeping a financial cushion after completion can make the transition into homeownership considerably less stressful.

An Okanagan homebuying example

Imagine purchasing a $750,000 resale home in Kelowna with a 10% down payment.

Your initial numbers could look something like this:

If you qualified for the BC First Time Home Buyers’ Program, the Property Transfer Tax could potentially decrease from $13,000 to approximately $5,000—an $8,000 difference.

That is why determining eligibility before writing an offer is so important.

Two potentially expensive costs that do not apply to every buyer

Foreign-buyer Property Transfer Tax

Foreign nationals, foreign corporations and taxable trustees purchasing in designated BC regions may face an additional Property Transfer Tax of 20% on their taxable proportionate share.

The designated areas include the Regional District of Central Okanagan. Buyers who may be affected should obtain legal advice before entering into a contract and review the official BC additional Property Transfer Tax information.

BC’s homebuyer rescission fee

For many residential purchases, BC provides buyers with a three-business-day rescission period after an offer is accepted.

A buyer who exercises that right must generally pay the seller 0.25% of the purchase price. On an $800,000 property, that equals $2,000.

Certain property types and transactions are exempt. Review the BC Home Buyer Rescission Period for details.

Frequently asked questions

How much should I save for closing costs when buying a home in BC?

In addition to your down payment, maintaining a reserve of at least 2% of the purchase price is a reasonable starting point for many resale purchases. Your requirement could be higher for a new home, rural property, strata property or transaction that does not qualify for tax exemptions.

Is my deposit an additional cost?

No. The deposit normally forms part of your total down payment. The important difference is timing: it must be available shortly after your offer is accepted, according to the contract.

Do first-time buyers pay Property Transfer Tax in BC?

Some do. Eligible first-time buyers purchasing a qualifying home valued at $835,000 or less may receive an exemption on the first $500,000. A partial exemption may apply between $835,000 and $860,000.

Do buyers pay GST on resale homes in BC?

Most conventional resale homes are not subject to GST. GST may apply to new homes, substantially renovated properties, certain vacant land and some properties used for commercial or short-term-rental purposes.

Can I add my closing costs to my mortgage?

Some expenses, such as mortgage default-insurance premiums, are commonly added to the mortgage. Property Transfer Tax, legal fees, your down payment and most other closing expenses usually require separate funds. Confirm the requirements with your lender.

Does the buyer pay real estate commission in BC?

In many transactions, the seller’s brokerage offers remuneration to the buyer’s brokerage. However, this is not automatic in every transaction. Review your service agreement with your real estate professional so you understand whether you could be responsible for any amount.

The bottom line

The safest homebuying budget is not simply:

Purchase price minus mortgage approval.

It is:

Down payment + closing costs + due-diligence expenses + a reserve for ownership.

Understanding these expenses before writing an offer can help you avoid last-minute surprises and focus on homes that comfortably fit your complete budget.

Planning to buy in Kelowna, West Kelowna, Lake Country, Vernon or elsewhere in the Okanagan? The Total Okanagan Real Estate Group at RE/MAX Kelowna can help you understand the local market, identify property-specific concerns and build a buying plan before you begin touring homes.

This article provides general information as of August 2026 and is not legal, lending, insurance, accounting or tax advice. Program rules and eligibility requirements can change. Buyers should confirm their individual costs with qualified legal, tax, mortgage, insurance and inspection professionals.