The purchase price is only one number in a home purchase. When buyers ask what costs are due at closing, they are usually trying to answer a much more practical question: how much money needs to be available before they receive the keys?
In British Columbia, closing costs can vary significantly depending on the type of home, its price, whether it is new or resale, and how you are financing it. A condominium in Kelowna, a family home in West Kelowna, or a lakeside property near Peachland can all come with slightly different considerations. Planning for these expenses early helps make possession day feel exciting rather than financially rushed.
What costs are due at closing in BC?
For most buyers, the major costs due at or just before closing are Property Transfer Tax, legal or notary fees, mortgage-related charges, property tax and utility adjustments, insurance, and possibly GST. Some costs are paid earlier in the process, such as a home inspection or appraisal, but they should still be included in your overall buying budget.
As a general planning range, many resale buyers set aside roughly 1.5% to 4% of the purchase price for closing costs. That range is broad because Property Transfer Tax can make up a substantial portion of the total. First-time buyer exemptions, new-home exemptions, and the details of your purchase can change the final number.
Your lawyer or notary will prepare a statement of adjustments before completion. This document is especially helpful because it sets out the funds required to complete the purchase after accounting for your deposit, mortgage proceeds, prepaid taxes, strata fees, and other adjustments.
Property Transfer Tax is often the biggest expense
Property Transfer Tax, commonly called PTT, is payable when most properties are transferred in British Columbia. It is calculated at 1% on the first $200,000 of the purchase price and 2% on the portion from $200,000 up to $2 million. Higher rates apply to value above that threshold.
For example, on an $800,000 resale home, Property Transfer Tax would be $14,000: 1% of the first $200,000 and 2% of the remaining $600,000. It is a meaningful cost, so it should be discussed before you write an offer, not after subjects are removed.
Some buyers may qualify for a full or partial exemption. The BC First Time Home Buyers’ Program can reduce or eliminate PTT for eligible purchasers within its price limits and qualification rules. There may also be exemptions for certain newly built homes and other specific situations. Eligibility depends on factors such as citizenship or permanent residency status, intended use, property value, and whether you have owned a principal residence before.
Because these programs and thresholds can change, your Realtor, lawyer, or notary can help you identify the questions to ask well before completion day.
Legal fees, disbursements, and registration charges
Every buyer needs a lawyer or notary to complete the conveyance, register the transfer and mortgage with the Land Title Office, receive mortgage funds, and make sure the seller can provide clear title.
Legal or notary fees vary based on the file’s complexity, but buyers should budget for the professional fee plus disbursements. Disbursements may include title searches, Land Title Office registration charges, courier costs, trust administration, and other third-party expenses. If there are complications involving a private sale, an estate, a title issue, or a more complex financing arrangement, fees can be higher.
Ask for an estimate that clearly separates the professional fee from disbursements and taxes. It makes comparisons easier and gives you a more realistic cash-to-close figure.
Title insurance and survey considerations
Title insurance is commonly recommended by legal professionals and is generally a one-time cost. It can offer protection against certain title-related issues, such as fraud, survey defects, or encroachments that were not identified at the time of purchase. It does not replace proper legal review, but it can provide useful protection for many buyers.
A current survey certificate is not required in every transaction. If one is needed or you choose to order one, it can add to your costs. Your lawyer or notary can advise whether the property and lender requirements make this worthwhile.
Mortgage and financing costs
Your lender may require an appraisal before approving the mortgage. Sometimes the lender covers this cost, but often the buyer pays. An appraisal is particularly common when the purchase price, property type, or market conditions require an independent opinion of value.
If your down payment is less than 20%, mortgage default insurance will usually apply. The premium is commonly added to the mortgage rather than paid in cash at closing, but provincial sales tax on the insurance premium may be payable upfront. This can surprise buyers who have carefully saved for their down payment but have not included it in their closing budget.
There can also be lender administration fees, mortgage registration fees, or costs related to a rate hold, assignment, or specialty financing. A clear conversation with your mortgage professional before making an offer is the best way to avoid last-minute surprises.
Adjustments for property taxes, utilities, and strata fees
The statement of adjustments divides certain prepaid costs between buyer and seller based on the completion date. If the seller has already paid annual property taxes, the buyer reimburses the seller for the portion covering the time after completion. If taxes have not been paid, the calculation may work in the buyer’s favour instead.
The same principle can apply to utilities, heating fuel, rental equipment, and, for condominiums and townhomes, strata fees. A strata property may also have upcoming special levies, so reviewing the Form B, meeting minutes, financial statements, depreciation report, and insurance information during your subject period matters. The goal is not simply to understand the monthly fee. It is to understand the condition and financial planning of the entire building or community.
These adjustments are not always large, but they are due as part of the final completion funds. In the Okanagan, timing can matter. A summer completion, for example, can affect how annual taxes and seasonal services are allocated.
GST may apply to a new home
GST is often included in the advertised price of a new construction home, but buyers should never assume this without confirming it in writing. It may apply to newly built homes, substantially renovated homes, or certain assignments and investment purchases.
A builder may offer a GST rebate assignment, which can reduce the amount you need to pay upfront if you qualify. The rules are detailed, especially where rental use, a change in intended occupancy, or an assignment is involved. Your contract and legal advice should clarify whether GST is included, excluded, rebated, or due on completion.
Resale homes are generally not subject to GST, which is one reason the difference between a new and resale purchase should be considered beyond finishes, warranty, and maintenance.
Costs paid before closing still deserve a place in your budget
Not every expense is collected by your lawyer or notary on completion day. A home inspection, appraisal, insurance binder, strata document review, and moving costs may be paid earlier. They are still part of the real cost of getting into your new home.
A home inspection is optional, but it is often one of the most valuable expenses a buyer can make. This is particularly true for older homes, rural properties, homes with wells or septic systems, and properties with pools, retaining walls, or substantial outdoor structures. Depending on the property, you may also want specialized inspections for pests, drainage, fireplaces, roofs, electrical systems, or septic equipment.
Before completion, your lender will require proof of home insurance. For a strata unit, your policy usually covers your contents, personal liability, improvements, and the strata deductible exposure that may apply to you. Detached homes need broader property coverage. Insurance is not a formality – it is required to protect both you and the lender before mortgage funds can be advanced.
What sellers should expect to pay at closing
Sellers have closing costs too, although the biggest amount is usually the real estate commission, plus GST on that commission. Commission is paid from the sale proceeds and shared according to the listing agreement and cooperating brokerage arrangement.
Sellers also pay legal fees and disbursements to discharge the mortgage, transfer title, and complete the sale. If there is a mortgage payout penalty, it can be one of the largest seller expenses, particularly when breaking a fixed-rate term. Your lender can provide a payout statement, and it is wise to request one before listing so there is time to consider your options.
Other seller costs may include property tax or strata fee adjustments, a discharge fee, and costs associated with preparing the home for sale. For non-resident sellers, withholding requirements can also affect the completion process. A lawyer can provide advice tailored to that situation.
Plan the cash requirement before subjects come off
The deposit is usually paid after an accepted offer and is credited toward your purchase. It is not an additional closing cost, but it does form part of the cash you need for the transaction. The final amount due to your lawyer or notary is typically your down payment, plus closing costs and adjustments, less the deposit already paid.
The most useful time to estimate this number is before you remove financing and other subjects. Ask your mortgage professional for a down payment and financing estimate, and ask your lawyer or notary for anticipated closing expenses. Then review the property-specific details with your Realtor, including taxes, strata matters, GST, and any conditions that could affect the total.
A well-planned purchase leaves room for both the expected costs and a modest buffer. That breathing room lets you focus on the moment that matters most: opening the door to a home that genuinely fits your life in the Okanagan.