Buying a Home in BC: Complete Cost Breakdown (2026)
A $780,000 BC home with 10% down needs $87,000 cash for a first-time buyer, $95,000 for a repeat buyer. Transfer tax, CMHC, legal fees and monthly costs.
In British Columbia the property transfer tax is the dominant closing cost: 1% on the first $200,000 and 2% above, so $13,600 on a $780,000 home. First-time buyers pay nothing on the first $500,000 if the home is under $835,000, cutting that to $5,600. BC does not charge PST on mortgage insurance premiums. Add legal fees, title insurance, inspection, an appraisal and a tax adjustment of roughly $3,700 together. A first-time buyer with 10% down on $780,000 needs about $87,255 in cash.
Figures come from the CostToClose guided buying flow.
Cash on closing: $780,000, 10% down
| Item | First-time buyer | Repeat buyer | Rule or estimate |
|---|---|---|---|
| Down payment | $78,000 | $78,000 | — |
| Property transfer tax | $13,600 | $13,600 | Rule |
| First-time buyers' exemption | −$8,000 | — | Rule |
| CMHC premium (3.10% of $702,000) | $21,762, added to mortgage | same | Rule |
| PST on premium | $0 | $0 | Rule — BC exempts it |
| Legal or notary fees | $1,500 | $1,500 | Estimate |
| Title insurance | $425 | $425 | Estimate |
| Home inspection | $550 | $550 | Estimate |
| Appraisal | $400 | $400 | Estimate |
| Property tax adjustment | $780 | $780 | Estimate |
| Closing costs | $9,255 | $17,255 | |
| Total cash needed | $87,255 | $95,255 |
This example was computed with the CostToClose calculator, 14 September 2026. Reproduce this.
The two exemptions
First-time buyers
No tax on the first $500,000 for homes up to $835,000; the $8,000 maximum benefit shrinks to zero between $835,000 and $860,000. Above that, full tax applies. Requirements: Canadian citizen or permanent resident, a year of BC residency or two BC tax returns in the last six years, never owned a principal residence anywhere, move in within 92 days.
Newly built homes
Any buyer pays no tax on a new home up to $1.1 million as a principal residence, phasing out by $1.15 million. A first-time buyer of a $700,000 new condo simply uses this one instead.
Full detail in BC property transfer tax explained.
Monthly costs after closing
Same purchase, 4.49% five-year fixed, 25 years, Surrey:
| Item | Monthly |
|---|---|
| Mortgage payment on $723,762 | $4,002 |
| Property tax (estimate ~0.35% to 0.45% of value in Metro Vancouver) | ≈ $290 |
| Home insurance (estimate) | ≈ $130 |
| Heat and utilities (estimate) | ≈ $180 |
| Total | ≈ $4,600 |
Metro Vancouver's property tax rates are among the lowest in Canada as a percentage of value, because values are high. Kelowna and Victoria are somewhat higher; use the property tax calculator.
What is different about BC
- Notaries can close purchases, not only lawyers; fees are similar.
- No PST on mortgage insurance, unlike Ontario, Quebec, Saskatchewan and Manitoba.
- 5% GST on new homes (BC has no HST), less the federal rebate; first-time buyers can recover the full GST on new homes up to $1 million. BC has no provincial new-housing rebate.
- Speculation and vacancy tax: an annual 1% (Canadians) or 3% (foreign owners) of assessed value on homes left empty in designated regions for the 2026 tax year; the foreign-owner rate rises to 4% from 2027. It does not apply to a home you live in, but you must file a declaration every year regardless. See BC speculation and vacancy tax.
- Additional 20% property transfer tax for foreign buyers in Metro Vancouver, the Capital Region, Fraser Valley, Central Okanagan and Nanaimo. Largely moot while the federal ban runs.
- Strata purchases: the Form B information certificate ($35 by law) and depreciation report replace much of a house inspection; read the contingency reserve fund balance before removing subjects.
What changes the number
- Price around $835,000 to $860,000 for a first-time buyer: the exemption vanishes over that range.
- 20% down removes the $21,762 premium; cash needed becomes about $165,000.
- Buying new: PTT drops to zero up to $1.1 million; GST applies.
Frequently asked questions
How much are closing costs in BC on a $780,000 home?
About $9,255 for a first-time buyer with 10% down, or $17,255 for a repeat buyer — the difference is the $8,000 property transfer tax exemption.
Is there PST on CMHC insurance in BC?
No. BC does not tax mortgage default insurance premiums, so nothing is due in cash for the premium.
Do first-time buyers pay property transfer tax in BC?
Not on the first $500,000, if the home is $835,000 or less. The benefit phases out between $835,000 and $860,000.
Can a notary handle my purchase in BC?
Yes. BC notaries public are licensed to convey residential property; fees are comparable to a lawyer's.
Does the speculation and vacancy tax apply to my own home?
No, if it is your principal residence — but you must declare every year by 31 March if it is in a designated region.
Sources
- Government of British Columbia, Property Transfer Tax, First Time Home Buyers' Program, Newly Built Home Exemption — checked 14 Sept 2026
- Government of British Columbia, Speculation and Vacancy Tax (2026 rates) — checked 14 Sept 2026
- CMHC, mortgage loan insurance premiums — checked 14 Sept 2026
- Department of Finance Canada, First-Time Home Buyers' GST Rebate — checked 14 Sept 2026
- BC Financial Services Authority, strata documents (Form B) — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It does not constitute legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before you rely on them.