What closing costs should a first-time buyer in BC budget for?

Sep 9

5 min read

Plan for roughly $5,000 to $6,500 on top of your down payment if your condo qualifies for BC's first-time buyer property transfer tax exemption, or $13,000 to $14,000 if it doesn't. The gap comes almost entirely from one line item: property transfer tax.

How much should I actually set aside?

Take a $650,900 condo, the median of 69 firm condo sales in Burnaby, Richmond and Vancouver between March 31 and August 11, 2026. Here's what a first-time buyer pays beyond the down payment:

Property transfer tax: $3,018 with the first-time buyer exemption, $11,018 without it.
Legal or notary fees: $1,300 to $2,100.
Title insurance: $200 to $300.
Home inspection: $350 to $450.
Strata document review (Form B): $50 to $100.

Add those up and you get $5,443 with the exemption or $13,443 without it, before the property tax and strata fee adjustment, which varies by the time of year you close.

A commonly cited rule of thumb budgets 1.5% to 4% of the purchase price for closing costs across Canada. That's $9,764 to $26,036 on this condo. BC's first-time buyer PTT exemption is why your total can land well under that range if your price is under $835,000, and near the low end of it if it isn't.

What is property transfer tax, and does the first-time buyer exemption help?

BC's general property transfer tax is 1% on the first $200,000 of a home's value and 2% on the rest, up to $2 million. On a $650,900 condo, that works out to $11,018.

First-time buyers get an exemption of up to $8,000 on homes priced at $835,000 or less, shrinking to zero at $860,000. A $650,900 condo sits in the flat $8,000 zone, so the tax owed drops to $3,018. I covered the exemption's price bands and eligibility rules in detail in my earlier article on the PTT exemption: worth reading before you write an offer, since it can shift your closing budget by thousands.

What do lawyers and notaries charge, and what do they cover?

Either a real estate lawyer or a notary public can handle your conveyancing in BC, and their fees run similarly: typically $1,300 to $2,100 for a purchase with a mortgage, depending on the firm and the complexity of the file. That covers the title search, mortgage registration, the property transfer tax filing, and the funds transfer on closing day.

A lawyer can also review your contract and represent you if a dispute comes up. A notary generally can't. If your purchase is straightforward, the price difference is usually small. If you're buying with unusual conditions or an assignment, talk to a lawyer first.

What other line items add up?

Title insurance protects against title defects and survey problems your lawyer or notary can't fully rule out. Expect $200 to $300 for a condo under $1 million. Your lender will usually require the policy that protects them; the owner's policy on top is optional.

Home inspection for a condo typically runs $350 to $450, since the inspector is only assessing your unit and its systems, not the roof or building envelope. Pay this during your subject-to-inspection period, before you're firm on the purchase, not at closing.

Strata document review costs you the Form B information certificate fee, capped by law at $35 plus copying charges, so budget $50 to $100 once your realtor pulls the full package, including bylaws, minutes, and the depreciation report if one exists.

Property tax and strata fee adjustments are a reimbursement between you and the seller, settled at closing. If the seller already paid property tax or strata fees covering days after your closing date, you pay them back for that portion. The dollar amount depends entirely on where in the year you close, so there's no fixed figure to plan around, just something to expect on your statement of adjustments.

Does GST apply to my purchase?

Not on a resale condo. GST only applies to new construction and presale purchases.

If you are buying presale as a first-time buyer, a federal rebate that took applications starting March 17, 2026 refunds the full 5% GST on new homes priced at $1 million or less, worth up to $50,000. The rebate phases out on a straight-line basis between $1 million and $1.5 million, and applies to purchase agreements signed with a builder from March 20, 2025 through 2031. Presale buyers should factor it in. It has no effect on a resale condo's closing costs.

Does a smaller down payment cost you at closing?

A down payment below 20% triggers mortgage default insurance. The premium gets added to your loan balance and paid down over the life of the mortgage. You don't write a check for it on closing day.

On that same $650,900 condo with the legal minimum down payment (5% on the first $500,000, 10% on the rest), you'd borrow about $610,810 at roughly 94% of the purchase price. That lands in CMHC's 90.01% to 95% loan-to-value band, a 4.00% premium, adding about $24,432 to your mortgage. You'll pay interest on that premium for as long as you carry the loan, so it's worth running the math before you decide how much to put down.

Frequently asked questions

How much are closing costs on a $650,000 condo in BC for a first-time buyer?

Roughly $5,000 to $6,500 if the price qualifies for the first-time buyer PTT exemption, or about $13,000 to $14,000 if it doesn't. Legal fees, title insurance, inspection, and strata document fees make up the difference between the two.

Is property transfer tax the biggest closing cost in BC?

Yes, by a wide margin, unless your purchase price qualifies for the first-time buyer exemption. Without it, PTT alone can be several times larger than every other closing cost combined.

Do I need a lawyer or a notary to buy a condo in BC?

One or the other, yes. Fees run similarly for both, typically $1,300 to $2,100 with a mortgage. A lawyer can also advise on contract disputes; a notary generally can't.

Does GST apply when I buy a resale condo?

No. GST applies only to new construction and presale purchases.

Do closing costs include my down payment?

No. Closing costs are fees and taxes on top of your down payment. Budget for both when you're figuring out how much cash you need on closing day.

Barton Lui is a REALTOR® with Real Broker in Vancouver. He works mostly with first-time buyers across Metro Vancouver and speaks English, Cantonese and Mandarin.

If you're mapping out your total cash needed to close, book a consultation or read about the PTT exemption thresholds and what income you need to qualify for a mortgage.

Reach him at 604-715-5568 or barton@bartonrealtor.com.