What are closing costs in BC, and when do I pay them?

Closing costs are everything you pay on top of the purchase price to complete the purchase. Most buyers think of them as one bill at the end. They are not. Some arrive before you even have an accepted offer, some during the subject period, and most in the days before completion. Knowing when each one lands matters as much as knowing what it is.

Before and during the subject period

The first costs show up while the deal is still conditional. A home inspection is paid when the inspector does the work, usually within days of acceptance. On a strata, the strata management company may charge for documents such as the Form B. Some lenders order an appraisal and pass the cost to the buyer, and some do not.

These are small compared to what comes later, but they are paid in cash, and they are paid even if you decide not to go ahead. That is part of what you are buying: the information to make a good decision.

The deposit is not a closing cost, but it is cash you need

After subjects are removed, the deposit is paid and held in trust. It becomes part of your down payment on completion. I mention it here because it is the largest amount that leaves your account early, and buyers who plan only for closing day sometimes find their money is in the wrong place at the wrong time.

In the days before completion

This is where most closing costs land. Your lawyer or notary prepares a statement of adjustments and tells you how much to bring. That statement usually includes:

The Property Transfer Tax, a provincial tax paid when the title is registered in your name. Exemptions exist for some first-time buyers and some newly built homes. The rules and a calculator are on gov.bc.ca.

Legal or notary fees and their costs, such as title searches and registration fees.

Title insurance, if your lawyer or lender uses it.

Adjustments for property taxes and, on a strata, strata fees. If the seller prepaid them for a period after completion, you repay that portion. If they owe for a period before, you get a credit.

GST, if you are buying a newly built or substantially renovated home and it is not already included in the price. The Canada Revenue Agency publishes the rules and the rebates.

If your mortgage requires default insurance, the premium is usually added to the mortgage rather than paid in cash. Ask your lender to show you exactly what is added and what, if anything, is due at closing.

You bring these funds, together with the rest of your down payment, to your lawyer or notary before completion. They will tell you the deadline and how to send the money, usually a bank draft or wire.

After you move in

Some costs come after the keys. Home insurance has to start on completion, and your lender will ask for proof. Utility accounts, moving costs and the first repairs follow. None of these appear on the lawyer's statement, so plan them separately.

How I prepare clients for it

Before a client writes an offer, I ask them to get a quote from the lawyer or notary they will use, and to run the Property Transfer Tax calculator on gov.bc.ca with their price range. With those two numbers and the lender's figures, we build a simple timeline: what is paid at acceptance, at subject removal and at completion.

The goal is that no cost arrives as a surprise. A buyer who knows the dates moves their money in time, keeps a reserve, and walks into the lawyer's office calm. A buyer who does not often ends up borrowing from family in the last week.

General educational content, verify property-specific details and consult qualified professionals when appropriate.

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