Cost of Buying | Financing
Closing Costs
Every item here comes out of the same savings as your down payment, and none of it can be added to the mortgage.
The short answer
Beyond the down payment you need property transfer tax, legal fees and disbursements, title insurance, adjustments for prepaid property tax and strata fees, and possibly GST depending on the contract. Together these are a meaningful multiple of what most buyers expect.
What you pay on a $1,300,000 newly built home
| List price | $1,300,000 |
|---|---|
| GST at 5% Normally added on top. A rebate may reduce it on qualifying purchases. | $65,000 |
| Property transfer tax Full tax before exemptions would be $24,000. | $24,000 |
| Before legal fees and adjustments | $1,389,000 |
Legal fees, title insurance, and closing adjustments are extra. Rebate eligibility depends on your circumstances, so confirm it with the Canada Revenue Agency or your lawyer before relying on it.
What has to be paid
Property transfer tax is usually the largest single item unless an exemption applies. Legal fees and disbursements cover the conveyancing. Title insurance is commonly required by lenders.
Adjustments settle up anything the seller prepaid, typically property tax and strata fees for the portion of the period after you take ownership. These are usually small and they are not optional.
- → Property transfer tax, unless an exemption applies
- → Legal fees and disbursements for conveyancing
- → Title insurance, where the lender requires it
- → Adjustments for prepaid property tax and strata fees
- → GST, if the contract does not include it and no rebate covers it
- → Moving costs, which are not a closing cost but arrive in the same week
Why it is worth itemising early
Because it is cash, it is due on a fixed date, and it cannot be borrowed. A buyer who has budgeted the down payment precisely and nothing else can find themselves short in the final week with no flexibility.
Ask your lawyer for an estimate of their fees and disbursements early. They will give you one and it costs nothing to ask.
What is not a closing cost
Your deposit is not an extra cost. It is part of the purchase price, paid earlier, and it is credited at completion.
Buyer agent commission is normally paid from the seller's side in this market, though that is a matter for the agreement rather than an assumption.
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Common questions
How much are closing costs in BC?
It depends almost entirely on whether property transfer tax applies, since that is usually the largest item by a wide margin. Legal fees and disbursements, title insurance, and adjustments make up the rest. Ask your lawyer for an estimate early.
Can closing costs go on the mortgage?
No. They are cash due at completion, out of the same savings as your down payment. That is why they belong in the budget from the start rather than as an afterthought.
Is my deposit an extra cost?
No. The deposit is part of the purchase price, paid earlier and credited at completion. It affects when you need the money rather than how much you need in total.
Where these figures come from
- Government of BC, property transfer tax rates
1% to $200,000, 2% to $2M, 3% above $2M, plus a further 2% on residential value above $3M.
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- Canada Revenue Agency, GST/HST new housing rebate
GST applies to new homes. The rebate reduces it on qualifying purchases.
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- VanPlex active listings, MLS® data
Active townhouses, half duplexes, and row houses built in the last two years across Metro Vancouver and the Fraser Valley.
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Work the numbers on a real home
Every figure here comes from government sources and from listings you can open. Search the market and check the costs against a specific price rather than a hypothetical one.