Estimate closing costs in BC and across Canada: transfer taxes and rebates, legal fees, PST on insurance premiums, and GST on new builds, including the 2026 first-time buyer GST rebate.
Need the full cash to close, including the minimum down payment and CMHC premium? Use the mortgage purchase calculator; this page covers the closing-day costs on top of the down payment.
A real Kelowna example, line by line
First-time buyer, $700,000 resale home, 10% down. Property transfer tax comes to $12,000, but the first-time buyer exemption applies below $835,000 and is worth up to $8,000, so $4,000 is actually payable. Add roughly $1,400 for legal work and disbursements, $300 for title insurance, $550 for an inspection, and a property tax adjustment that depends on your closing date. The appraisal is usually the lender’s problem. Cash needed beyond the down payment: about $6,500.
Same house, not your first: the exemption disappears and the bill lands near $14,500. That one line is most of the difference.
The BC rules this calculator applies
Property transfer tax runs 1% on the first $200,000, 2% up to $2 million, 3% above that, with a further 2% on any residential value past $3 million. The first-time buyer exemption gives full benefit up to $835,000 and fades out by $860,000; on newly built homes the threshold is $1.1 million. GST only exists on new construction, 5%, and first-time buyers on new builds up to $1 million can now recover the full amount under the federal rebate. Minimum down payment is 5% of the first $500,000 and 10% of the rest, up to the $1.5 million insured ceiling.
| Line item | Typical amount in BC | Notes |
|---|---|---|
| Property transfer tax | Tiered: 1% / 2% / 3% | Usually the biggest line; first-time buyers exempt to $835,000 |
| Legal work and disbursements | $1,200 to $1,800 | Lawyer or notary, title registration |
| Title insurance | $250 to $400 | Usually required by the lender |
| Home inspection | $450 to $650 | Optional but recommended |
| Appraisal | Often lender-covered | Ask; on standard files it is usually their cost |
| Property tax adjustment | Depends on closing date | You reimburse the seller’s prepaid share |
| GST | 5%, new construction only | Resale homes have no GST; rebates on new builds under $1M |
Frequently asked questions
How much should I budget for closing costs in BC?
Plan on 1.5% to 2% of the purchase price on top of your down payment. On a $700,000 Kelowna home that’s $10,500 to $14,000, mostly property transfer tax, legal fees and adjustments. First-time buyers often get some or all of the transfer tax back.
What’s the biggest single closing cost?
Property transfer tax, almost always. BC charges 1% on the first $200,000 and 2% up to $2 million, so it dwarfs the lawyer’s bill. The calculator breaks it out so you can see where the money actually goes.
Does my lender cover any of these costs?
Sometimes. On switches at renewal the new lender often covers legal and appraisal fees, and some purchase promotions include the appraisal. Cash-back mortgages exist too, but you pay for them in the rate.
Do I pay GST when buying a home?
Only on new construction. Resale homes carry no GST. A new build adds 5%, with a partial rebate below certain price points, and the calculator includes it.
Who pays closing costs, the buyer or the seller?
Each side pays their own. Buyers cover the list above. Sellers pay the realtor commissions plus GST on them, their own legal fees, and any mortgage discharge fee or penalty. Nothing here is split by default in BC.
When are closing costs due?
Almost all of it lands on completion day through your lawyer’s trust ledger, alongside the down payment. The exceptions come earlier: the inspection when it happens, and the appraisal if your lender passes the cost to you.
What closing costs does the seller pay in BC?
Commission on the sale plus GST, legal fees to discharge title, and any penalty for breaking their mortgage before maturity. If you are selling and buying at once, budget both columns; the penalty is the number to check first. Run the numbers in the seller closing costs calculator.