What fees do you pay when buying a house in BC?

The price on the contract is not what the home costs you. On top of the down payment there is a group of costs that arrive between your accepted offer and the day you get the keys, and some of them are due in cash. Buyers who plan only for the down payment are the ones scrambling in the last week. Here is what is usually on the list, what each item is for and who to ask about the amount.

Property Transfer Tax

The Property Transfer Tax is paid when the transfer is registered at the Land Title Office, which happens on completion. It is calculated on the fair market value of the property, and for most buyers it is the largest single closing cost. There are exemptions, including ones for first-time buyers and for newly built homes, each with its own conditions.

The rates and the exemption rules are set by the province and they change. Read them on gov.bc.ca, and have your lawyer or notary confirm the figure for your purchase. Do not rely on a number you heard from a friend who bought a few years ago.

GST on a new home

If you are buying a newly built home or a presale, GST generally applies, and depending on the contract it may or may not be included in the price. Rebates exist for some buyers. The Canada Revenue Agency publishes the rules. Read your contract carefully on this point, because "plus GST" changes the amount you need to have.

Legal or notary fees

In BC a lawyer or notary handles the conveyance: they check the title, prepare the transfer documents, receive the mortgage funds, pay the seller and register you as the owner. Their fee comes with disbursements, which are the searches and registration charges they pay on your behalf. Ask for a quote early and ask what the disbursements include.

Title insurance is often arranged through them as well. Ask what it covers and whether your lender requires it.

Inspection, appraisal and documents

A home inspection is paid by the buyer, usually during the subject period. On a strata property, there may also be a cost for documents such as the Form B Information Certificate, minutes and the depreciation report, depending on who orders them. If your lender orders an appraisal, ask whether you or the lender pays for it.

These are small compared with the tax, but they come due early, before you have removed subjects, and you pay them whether or not the purchase goes ahead.

Adjustments on completion

On completion, your lawyer or notary prepares a statement of adjustments. If the seller has already paid the year's property taxes, you reimburse them for the days you will own the home. Strata fees and some utilities are adjusted the same way. The adjustment can go either direction, and it is calculated on the actual dates, so you will not know the exact figure until near the end.

Insurance and moving

Your lender will want proof of home insurance before it releases the mortgage. If the mortgage is insured because of the size of the down payment, there is a default insurance premium, usually added to the mortgage rather than paid in cash. Then there are the ordinary costs of moving: movers, utility connections, and the things every new home seems to need in its first month.

How I handle this with buyers

Before a buyer writes an offer, I ask them to get two things in writing: a quote from the lawyer or notary they plan to use, and confirmation from their lender of what cash they need to have on completion. Then we list every cost above against the timeline: what is paid at inspection, what is paid at subject removal, and what is paid on completion.

A buyer who sees that list early buys with a clear head. A buyer who sees it for the first time in the lawyer's office is the one who has to call family for help.

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

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