Buying a home in British Columbia involves more than just the purchase price. Buyers should also budget for additional costs such as property transfer tax, legal fees, home inspections, and closing adjustments.
Understanding these costs ahead of time can help you prepare financially and avoid surprises during the home buying process.
Property Transfer Tax
One of the largest closing costs when purchasing real estate in British Columbia is the Property Transfer Tax.
Learn more here:
https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax
The tax is calculated as follows:
1% on the first $200,000
2% on the portion between $200,000 and $2,000,000
3% on the portion between $2,000,000 and $3,000,000
5% on the portion above $3,000,000
Some buyers may qualify for exemptions such as the First-Time Home Buyer Program.
Legal or Notary Fees
Buyers typically hire a lawyer or notary to handle the legal transfer of the property.
Typical cost:
$1,200 – $2,000
The legal professional will prepare documents and register the property title with the Land Title and Survey Authority of British Columbia.
More information:
Home Inspection
A home inspection is recommended for most home purchases and helps identify potential issues with the property before completing the purchase.
Typical cost:
$500 – $800 depending on property size
Property Appraisal
If you are obtaining a mortgage, your lender may require a professional appraisal to confirm the property’s market value.
Typical cost:
$300 – $500
Property Insurance
Most lenders require property insurance before the transaction completes.
Typical cost:
$800 – $1,500 per year depending on the property and coverage.
Property Tax Adjustments
When you purchase a property, you may need to reimburse the seller for the portion of property taxes they have already paid for that year.
Property tax information can be found through your local municipality:
City of Burnaby – https://www.burnaby.ca
City of Vancouver – https://vancouver.ca
Property Assessments
Property owners and buyers can review property assessment values through BC Assessment.
This provides the government’s assessed value of the property, which is used to calculate property taxes.
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.