Closing Costs in BC: What Buyers Actually Pay, Item by Item
The budget rule: 1.5% to 4% of the price
Your down payment is not the last cheque you write. On top of it, buying a home in BC comes with closing costs that typically total roughly 1.5% to 4% of the purchase price. On a $900,000 home, that is somewhere around $13,500 to $36,000 in additional cash, most of it due around completion. Where you land in the range depends heavily on the Property Transfer Tax: without an exemption it is $16,000 on this example, so the low end of the range is realistic mainly for buyers who qualify for an exemption or buy at a lower price. Lenders know this — many want to see that you have the closing costs available in addition to your down payment before they approve the mortgage.
The biggest item: Property Transfer Tax
For most buyers the largest single closing cost is the Property Transfer Tax: 1% on the first $200,000 of value, 2% on the portion up to $2,000,000 and 3% above that — $16,000 on a $900,000 home, paid at registration. First-time buyers and buyers of newly built homes may qualify for exemptions that reduce or remove it, which is why two buyers of identical homes can face very different closing bills. Our full PTT guide works through the rates and exemptions in detail.
Professional fees: legal, inspection and appraisal
Every purchase needs a lawyer or notary to handle the transfer, registration and mortgage documents — budget roughly $1,000 to $2,000 or more for legal or notary fees, plus disbursements. A home inspection typically runs about $400 to $600 and is cheap insurance on the biggest purchase of your life. Your lender may also require an appraisal to confirm the home is worth what you paid, and title insurance is commonly arranged through your lawyer to protect against title problems.
Adjustments, moving and the small stuff
At completion, accounts between buyer and seller are squared up through adjustments: if the seller prepaid property tax or strata fees beyond the completion date, you reimburse your share, and the reverse can also happen. Add moving costs, utility hookups, and the odds and ends of a first month in a new home. None of these is huge alone, but together with the items above they explain why the 1.5% to 4% range is the honest way to budget — and why first-time buyer exemptions that erase the transfer tax help so much when you qualify. The checklist on our first-time buyers page puts these costs into the full buying timeline.
A note before you rely on this
This article is general information only, not legal or financial advice. Fees and figures change — verify the current details at gov.bc.ca and canada.ca before you buy, and get a quote from your own lawyer or notary.
Frequently asked questions
How much should I budget for closing costs in BC?
Roughly 1.5% to 4% of the purchase price, in cash, on top of your down payment. The Property Transfer Tax is usually the biggest piece, so any exemption you qualify for moves you toward the low end of the range.
What does a lawyer or notary cost to close a home purchase in BC?
Budget roughly $1,000 to $2,000 or more, plus disbursements. Your lawyer or notary handles the transfer registration, the mortgage documents and the statement of adjustments that settles prepaid taxes and strata fees.
Is a home inspection a required closing cost?
It is not legally required, but at roughly $400 to $600 it is one of the cheapest protections you can buy. Most BC offers include an inspection subject, giving you a window — often around 7 days — to inspect before the deal becomes firm.
When are closing costs paid?
Most are due around completion and registration, when the Property Transfer Tax is paid and ownership transfers. A few, like the inspection, are paid earlier — while your subjects are still in place, before the deal becomes firm.