Buyers Closing Costs

Buying a Home or Investment Property in British Columbia, Canada (As of October 2016)

As a home purchaser in B.C. you may be responsible for the following costs:

  1. CMHC fees (mortgage insurance fees) apply if less that 20% down payment.
    Premiums: .60 - 3.85% on loan amount.

    *Can roll premium into mortgage.
    * Homes over $1,000,000 require a 20% down payment and homes under $500,000 qualify for a 5% down payment.

  2. Property Transfer Tax (Provincial – cannot be rolled into Mortgage)
                         1% on the 1st $200,000
                         2% on the balance.

    First time buyer exemption available upon meeting the following qualifications:
    1. Must be financing 70% or more of the purchase price.
    2. Mortgage term at least one year & Mort balance cannot be reduced by more than $11,000 or below 70% of the amount borrowed, during the 1st year.
    3. Purchaser never owned an interest in a principal residence before … anywhere!   
    4. Purchase price not to exceed $475,000.
    5. B.C. resident for more than one year prior to registration/permanent resident of Canada.
    6. Property will be principal residence.

    *A buyer who ceases to maintain the residence as his principal residence prior to the first anniversary of the registration date may be eligible for a pro-rated exemption.


    * A property with a fair market value of up to $25,000 more than the above limits may be eligible for a proportionate amount of the exemption.

    *Pre-completion (new homes) Tax is based on “market value” at the time of completion.

    *Other requirements may apply-contact Property Transfer Tax info line 1-250-387-0604 or visit: www2.gov.bc.ca/.

  3. Goods and Services Tax (Federal GST) - 5% of the purchase price (New Homes)

    Rebates for buyers & homes under set value are available to qualifying purchasers.

    Click here for more information and please contact your Accountant/Lawyer for your particular situation.

  4. Foreign Buyers Tax (Metro Vancouver) - 15% of the purchase price (New or Resale Homes)

    Foreign nationals who buy residential real estate in "Metro Vancouver" will pay an additional property transfer tax of 15 percent under legislation brought in on August 2, 2016.

  5. Adjustments Costs prepaid by seller prior to closing: utilities/taxes/strata maintenance fees/rents collected etc.

  6. Mortgage application and appraisal fees ($300+) that the financial institution may charge. 

  7. Survey certificate/Title insurance (House- $150-$350), if required by the lender.

  8. Legal Fees for closing and conveyance. $850 - $1,200 +

  9. Property Insurance as required by the lender. (Condo-maintenance includes this)

  10. Home inspection -  $350 +  (House will be substantially more)

  11. Sales commissions (Realtors). * Seller pays these fees in most cases.
  • Home Buyers’ Plan: First-time home buyers may withdraw $25,000/person from RRSP (was $20,000). Or $50k/couple - see www.cra-arc.gc.ca

*Above information is subject to change and approximate. Provider of the above information not responsible for its accuracy. Additional cost may be incurred by the seller

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