Closing Costs

Don't Forget Closing Costs When Buying a Home


It is a must to keep in mind closing costs in addition to your down payment.  These various charges can add up and, for the most part, they are all legally required payments in buying a property. These payments include:

1. Legal fees
Since a lawyer or notary public is an essential part of your home-buying team, the work you'll need completed involves legal fees. Most legal fees include searching the title of a property, arranging a property survey if necessary and handling other disbursements as required. (Avg $1000+) 

2. Mortgage insurance and application fees
For any high ratio mortgage, which is any mortgage in which 80% or more of the house's purchase price is covered by the mortgage, the lender requires mortgage insurance.

3. Property insurance:
This insurance covers the replacement value of your home and its contents. Most mortgage lenders will require proof that you have this insurance before processing a mortgage.

4. Home inspection
A professional home inspector knows what to look for and can confirm or add to the information you have gleaned from the REALTOR® or your inspection. (Avg. $500-$700)

5. Property Transfer Tax
This provincial tax is payable at the rate of 1% on the first $200,000 of the fair market value and 2% on the balance up to $2million. 3% from $2mill-3mill and an additional 2% on the amount over $3million."Fair market value" is the price that would be paid for a property on the open market. The actual purchase price is usually a good indicator of the fair market value. Some exemptions may apply, including for first-time home buyers. 

6. GST
5% GST is payable to some degree on the purchase price on all NEW homes, although partial rebates are available on the purchase of most homes. A resale residential home is usually exempt from GST.

7. Extra charges/adjustments

You may also be required to pay the costs of such things as heating oil in the tank, or other costs incurred by the seller, but included with the house, prior to the closing day.

8. BC Foreign Buyer Tax

For non-Canadians there will be an additional 20% property transfer tax. 

For full details visit:

9. BC Speculation and Vacancy Tax

If the property is not your primary residence or rented out at least 6 months of the year (clink link below for full list of exemptions) you may have to pay the speculation and vacancy tax.  The tax is billed annually at 2% of the assessed value for foreign owners and satellite families of 0.5% of the assessed value for Canadian citizens or permanent residents.

For full details visit:

10. Federal Underused Housing Tax

The Underused Housing Tax is an annual 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. The tax usually applies to non-resident, non-Canadian owners. In some situations, however, it also applies to Canadian owners. 

For full details visit:

11. Moving costs

The basic costs involved in moving from your old place into your new home, particularly if you use a professional moving company.

12. Hook-ups

There may be hook-up charges required for appliances and services such as telephone, TV cable, hydro and other utilities.