Quick answer: The biggest BC closing cost is the Property Transfer Tax (PTT): 1% on the first $200,000, 2% from $200,001 to $2,000,000, 3% above $2,000,000, plus a further 2% on residential value above $3,000,000. Add legal/notary fees ($1,000-$1,800), title insurance ($150-$400), property-tax and utility adjustments, inspection ($400-$700), an appraisal if required, and 5% GST on new builds. Total closing cost for a $900,000 resale home in Greater Vancouver: roughly $18,000-$22,000 in cash above the down payment.
What this means: First-time buyers with a property at or under $835,000 fair market value get up to an $8,000 PTT exemption (full exemption below $500,000 FMV; the same $8,000 exemption from $500,000 to $835,000; proportional phase-out between $835,000 and $860,000; nothing at or above $860,000). Buyers of newly built homes can get a full PTT exemption up to $1,100,000 (partial to $1,150,000). Both exemptions are claimed at registration with Land Title and Survey Authority of BC.
What to do next: Plug in your BC purchase price for an exact PTT calculation. BC property transfer tax calculator →
BC Property Transfer Tax (PTT) rates in 2026
The BC PTT is the single largest closing cost on a typical BC purchase. Rates have not changed for 2026 and are set in the Property Transfer Tax Act:
| Fair market value band | General PTT rate |
|---|---|
| Up to $200,000 | 1% |
| $200,001 to $2,000,000 | 2% |
| Above $2,000,000 | 3% |
| Residential portion above $3,000,000 | Further +2% on the portion above $3,000,000 |
Worked example. A $900,000 resale home in Greater Vancouver: 1% × $200,000 = $2,000; plus 2% × ($900,000 − $200,000) = 2% × $700,000 = $14,000. Total PTT = $16,000.
$3,500,000 detached home. 1% × $200,000 + 2% × $1,800,000 + 3% × $1,500,000 + further 2% × ($3,500,000 − $3,000,000) = $2,000 + $36,000 + $45,000 + $10,000 = $93,000.
First-time home buyer exemption
The BC first-time home buyer (FTHB) program provides PTT relief if you meet all of these at the time of registration:
- Canadian citizen or permanent resident.
- Lived in BC for at least 12 consecutive months before the date the property is registered, or filed at least two BC income tax returns in the last six tax years.
- Never owned a registered interest in a principal residence anywhere in the world.
- Never received an FTHB exemption or refund before.
The property must also be your principal residence and no larger than 0.5 hectares (1.24 acres). The FTHB exemption amount depends on fair market value (FMV):
| Fair market value | 2026 FTHB exemption |
|---|---|
| $500,000 or less | Full exemption — no PTT payable |
| Over $500,000 and no more than $835,000 | Exemption amount is $8,000; PTT is payable on the balance |
| Over $835,000 and under $860,000 | Exemption is proportionally reduced (phase-out) |
| $860,000 or more | No FTHB exemption |
Example A — $480,000 FTHB purchase. FMV is at or under $500,000 so the full PTT amount is exempt. PTT after exemption: $0.
Example B — $750,000 FTHB purchase. FMV is over $500,000 and at or under $835,000. PTT before exemption: 1% × $200,000 + 2% × $550,000 = $2,000 + $11,000 = $13,000. FTHB exemption: $8,000. PTT after exemption: $5,000.
Example C — $850,000 FTHB purchase. FMV is in the proportional phase-out band. Approximate exemption phase-out (linear between $835,000 and $860,000): roughly 40% of $8,000 = ~$3,200. PTT before exemption: 1% × $200,000 + 2% × $650,000 = $2,000 + $13,000 = $15,000. PTT after partial exemption: roughly $11,800. The exact phase-out amount should be confirmed with your lawyer/notary; the gov.bc.ca calculator gives the precise figure.
Example D — $900,000 FTHB purchase. FMV is $860,000 or more — no FTHB exemption applies. Full PTT is payable: $2,000 + $14,000 = $16,000.
Newly built home exemption
Effective April 1, 2024, the BC newly built home PTT exemption thresholds increased:
- Full exemption: FMV up to $1,100,000 (was $750,000).
- Partial exemption: FMV between $1,100,000 and $1,150,000, on a phase-out (no exemption at $1,150,000+).
A newly built home is one that has not been occupied since construction. It includes a newly constructed house on previously vacant land, a unit in a newly built condo, or a manufactured home placed on vacant land. Other conditions: principal residence, 0.5 hectares or smaller, and Canadian citizen / permanent resident.
Legal and notary fees
BC purchases are closed by a real estate lawyer or a BC notary. Typical 2026 fees for a single residential purchase:
- Lawyer or notary fee: $1,000 to $1,800 for a standard purchase (more if multi-title, complex assignment, or refinance combined).
- Disbursements: courier, postage, registration submissions, government fees ($100-$300).
- Land Title Office filing fees: roughly $79-$200 depending on documents filed.
Title insurance
BC title insurance is optional but commonly required by lenders. Typical 2026 cost: $150 to $400 for a one-time premium, depending on insurer (FCT, Stewart Title, Chicago Title) and property value. Title insurance protects against title fraud, undiscovered encumbrances, and survey issues.
Property-tax and utility adjustments
At closing, your lawyer or notary reconciles property taxes, strata fees, and utility bills with the seller. If the seller has paid taxes for the year past the closing date, you reimburse them for the post-closing portion (a debit to you). If the seller has not yet paid the year’s taxes, you receive a credit for the seller’s share.
Typical adjustment range on closing day in BC: $500 to $3,000, depending on the closing date, BC property tax dates (rural July 2, urban July, varies by municipality), and strata fee schedule.
Inspection and appraisal
- Home inspection: $400-$700 for a single-family home in Greater Vancouver or Victoria, less in smaller markets. Optional but strongly recommended.
- Appraisal: $300-$600. Often required by the lender when the down payment is large or the property is unique. Sometimes waived by the lender for high-ratio insured mortgages.
GST on new construction
A newly built home (or a substantially renovated home) is subject to 5% federal GST on the purchase price. BC does not add provincial sales tax on new home sales (BC’s PST exempts most real property).
The federal GST New Housing Rebate can recover part of the GST when the purchase price is below specific thresholds:
- Full rebate (36% of GST paid, up to $6,300) on new homes priced up to $350,000.
- Partial rebate phasing out between $350,000 and $450,000.
- No federal rebate above $450,000.
A separate BC New Housing Rebate is generally not available on substantially renovated detached homes; consult the BC Ministry of Finance for current program details.
Resale homes are not subject to GST.
Worked example: $900,000 Greater Vancouver resale
| Closing cost item | Estimate |
|---|---|
| Property Transfer Tax | $16,000 |
| Legal / notary fee + disbursements | $1,500 |
| Title insurance | $250 |
| Property-tax adjustment (mid-year close) | $1,500 |
| Home inspection | $600 |
| Appraisal (if not waived) | $400 |
| GST (resale, no GST) | $0 |
| Total closing costs (cash above down payment) | ~$20,250 |
For a first-home purchase at $500,000 or less the PTT line drops to $0; between $500,000 and $835,000 the FTHB exemption shaves $8,000 off the PTT calculation; between $835,000 and $860,000 the exemption phases out; at or above $860,000 there is no FTHB exemption.
Common mistakes
- Forgetting PTT. The single largest cash cost for most BC buyers. Budget for it explicitly.
- Assuming the FTHB exemption is automatic. You must claim it at registration via the Land Title Office. Your lawyer or notary handles this if you tell them you qualify.
- Missing the $860,000 hard cap. At or above $860,000 fair market value, no FTHB exemption applies, even if you are a first-time buyer.
- Misreading the FTHB benefit as “no PTT on first $500,000.” The benefit is capped at an $8,000 exemption between $500,000 and $835,000 FMV; PTT is still payable on the balance.
- Confusing the newly built home exemption with the FTHB exemption. The newly built exemption applies up to a $1,100,000 FMV (partial to $1,150,000) regardless of first-time buyer status, but you must occupy the home and meet residency conditions.
- Overlooking GST on assignment sales. A pre-construction condo bought from a developer is GST-able. An assignment of that pre-construction contract may also be GST-able and may push you into different tax treatment.
- Not budgeting for the foreign buyer additional tax. Foreign nationals or foreign corporations buying residential property in many BC regions pay an additional 20% tax on top of regular PTT (see Additional Property Transfer Tax).
Frequently asked questions
What is the BC PTT on a $1,000,000 home?
1% × $200,000 + 2% × $800,000 = $2,000 + $16,000 = $18,000. No FTHB exemption applies above $860,000 FMV unless the home is newly built and meets the newly built exemption.
Do I pay PTT on a refinance?
No. PTT applies on transfers (purchases), not on mortgage refinances or renewals on the same title.
What is the FTHB exemption on a $700,000 home?
$8,000 (the FTHB exemption amount between $500,000 and $835,000 FMV). PTT before exemption: $2,000 + 2% × $500,000 = $12,000. PTT after exemption: $4,000.
Are realtor commissions a closing cost?
For buyers in BC, realtor commission is generally paid by the seller. You do not write a cheque for it at closing.
What is the foreign buyer additional PTT?
A 20% additional PTT applies to foreign nationals or foreign corporations purchasing residential property in many BC regions (Greater Vancouver, Capital Regional District, Fraser Valley, Central Okanagan, Nanaimo). Stack this on top of the standard PTT.
Can I roll closing costs into my mortgage?
Generally no for the major items (PTT, legal fees) — they must be paid in cash at closing. Some lenders allow CMHC insured purchasers to add a small “cash back to cover closing” on top of the mortgage; this is rare and adds interest cost.