When you're buying a home, it’s easy to focus on the big numbers — the list price, your down payment, your mortgage rate. But there are a few important closing costs that can sneak up on buyers if you’re not prepared.
Here’s a quick breakdown of the ones most people forget about:
📌 Property Transfer Tax (PTT)
This is one of the biggest costs when purchasing a home in BC. It’s charged based on the property’s fair market value at the time of purchase:
1% on the first $200,000
2% on the portion between $200,000 and $2 million
3% on amounts over $2 million
Example: On a $500,000 home, you’d be looking at about $8,000 in PTT.
📌 Title Insurance
A one-time expense that protects you against potential issues with a property’s title — like ownership disputes or unpaid liens. It typically runs between $250–$400, depending on the home’s value.
📌 GST on Newly Built Homes
If you’re buying a brand-new home, there’s a 5% GST applied to the purchase price. Some first-time buyers might qualify for partial exemptions, so it’s worth looking into.
📌 Legal Fees
A real estate lawyer or notary is a must to review contracts, handle paperwork, and manage the financial side of closing. Expect to budget around $1,500–$2,000.
Pro Tip: Before you start home shopping, it’s smart to get a clear estimate of these costs based on the type of property you’re targeting. It’ll help you budget realistically and avoid last-minute surprises.
If you’d like, I can help break down what your closing costs might look like on a home you’re considering — just give me a call at 778-345-8897.
Talk soon,
Jon Pereira
RE/MAX Performance Realty
📱 778-345-8897
📧 jon@jonpereirarealty.com
