Closing Costs in an Attached Home Transaction in British Columbia: What Buyers Need to Know

Buying a home is exciting—but it’s also a big financial commitment. If you're purchasing an attached home in British Columbia—such as a townhouse, duplex, or condo—it's important to plan for more than just your down payment. One of the most overlooked expenses? Closing costs.

These are the legal, administrative, and tax-related costs that come due around the time your purchase completes. Understanding these can help you budget effectively and avoid surprises.

🔍 What Are Closing Costs?

Closing costs are the fees and expenses that must be paid in addition to the purchase price of your home. They are due on the completion or closing date, when ownership officially transfers from the seller to the buyer.

These costs typically range between 2% to 5% of the purchase price, though this can vary depending on your unique situation.

🧾 Breakdown of Common Closing Costs in BC (Attached Home Purchase)

1. Property Transfer Tax (PTT)

This is usually the largest closing cost for BC homebuyers.

• 1% on the first $200,000
  
  
  

• 2% on the portion from $200,001 to $2,000,000
  
  
  

• 3% on the portion over $2,000,000
  
  
  

• Additional 2% on the portion over $3,000,000 (if not principal residence)
  
  
  

✅ First-Time Home Buyer Exemption: If you're a first-time buyer purchasing a home under $500,000 (with partial exemptions up to $525,000), you may qualify for full or partial exemption.

✅ Newly Built Home Exemption: Applies to new homes under $750,000.

👉 Always confirm with your lawyer or notary if you qualify for an exemption.

2. Legal Fees or Notary Public Fees

To complete a real estate transaction in BC, you must hire either a real estate lawyer or notary public to handle:

• Title search
  
  
  

• Land title registration
  
  
  

• Mortgage registration
  
  
  

• Disbursements (land title fees, couriers, etc.)
  
  
  

💰 Cost: ~$1,200–$2,000+ (depending on complexity)

3. GST (Goods and Services Tax)

GST applies only to new or substantially renovated homes.

• 5% GST is charged on the purchase price.
  
  
  

• A partial rebate may be available for homes under $450,000.
  
  
  

📌 Most attached home buyers will only encounter this if buying brand new or pre-construction units.

4. Home Inspection Fee

Not mandatory—but highly recommended, especially for townhomes or duplexes where shared structures exist.

💰 Cost: ~$400–$700

5. Appraisal Fee

If you're getting a mortgage, your lender may require an appraisal to confirm the home’s value.

💰 Cost: ~$300–$500
(Some lenders may cover this fee.)

6. Title Insurance

Protects you and your lender against potential issues with the title, such as fraud or errors.

💰 Cost: ~$250–$400
May be included in legal fees package.

7. Strata Fees (Prepaid/Adjustment)

If you're buying into a strata (condo/townhouse community), there may be adjustments for prepaid strata fees.

💡 These are calculated based on your possession date. You may need to reimburse the seller for fees already paid, or vice versa.

8. Home Insurance

Your lender will require proof of insurance before funding the mortgage. For attached homes, you may need:

• Contents & liability insurance
  
  
  

• Strata deductibles coverage
  
  
  

💰 Cost: Varies, but budget ~$30–$70/month

9. Move-In / Elevator Fees (for condos)

Some strata buildings charge a non-refundable move-in fee or require a damage deposit.

💰 Cost: ~$100–$500+

10. Mortgage Insurance (If applicable)

If your down payment is less than 20%, you’ll need CMHC insurance or from another provider.

While this is usually added to your mortgage, it’s important to account for it.

📋 Example Closing Cost Estimate – $700,000 Condo in Vancouver

📌 This is a general estimate. Your actual costs may vary.

🧠 Final Tips for Buyers

• Plan early: Ask your mortgage broker or lawyer for a full estimate of your closing costs during your financing period.
  
  
  

• Check for exemptions: You might qualify for property transfer tax relief.
  
  
  

• Read your strata documents: Understand all financial obligations related to strata fees, special levies, and rules.
  
  
  

• Keep a buffer: Set aside a bit extra for unexpected adjustments or last-minute costs.
  
  
  

📝 In Summary

Closing costs in British Columbia can add up quickly—especially in cities like Vancouver or Victoria where home prices are higher. Being prepared and informed means fewer surprises on completion day.

Whether you’re buying a condo in downtown Vancouver or a townhouse in the Fraser Valley, make sure you’ve budgeted for the full picture—not just your down payment.

Have questions or want help estimating your specific closing costs? Don’t hesitate to reach out to a BC real estate professional, lawyer, or mortgage broker.