What Are Closing Costs?
Closing costs are the fees and expenses you pay on top of the purchase price when buying a home in British Columbia. These costs are due on your completion (closing) date and can add up to 1.5%–4% of the purchase price — depending on whether you qualify for any exemptions.
Many first-time buyers budget for their down payment but forget about closing costs, which can easily total $10,000–$30,000 on a typical Surrey home. I always walk my clients through these numbers early in the process so there are no surprises on closing day.
Key Takeaway
Complete Closing Cost Breakdown
Here's every closing cost you may encounter when buying a home in BC, broken down by category:
Mandatory Costs (Everyone Pays)
| Cost | Typical Amount | Notes |
|---|---|---|
| Property Transfer Tax | $8,000 – $30,000+ | 1% on first $200K, 2% on balance up to $2M |
| Legal / Notary Fees | $1,200 – $2,000 | Lawyer or notary to handle closing documents |
| Title Insurance | $250 – $500 | Protects against title defects; most lenders require it |
| Property Tax Adjustment | $500 – $3,000 | Reimburse seller for prepaid property taxes |
| Strata Document Review | $250 – $500 | If buying a condo/townhome — review strata docs |
Costs That May Apply
| Cost | Typical Amount | When It Applies |
|---|---|---|
| Home Inspection | $400 – $700 | Strongly recommended for all purchases |
| Appraisal Fee | $300 – $500 | Some lenders charge; many cover this themselves |
| CMHC Mortgage Insurance | 2.4% – 4% of mortgage | Required if down payment is less than 20% |
| GST (5%) | 5% of purchase price | New construction only — not resale homes |
| Strata Move-in Fee | $100 – $500 | Some strata buildings charge a moving deposit |
| Home Insurance | $800 – $2,000/year | Required by lenders; first year paid upfront |
| Interest Adjustment | $200 – $1,500 | Covers interest from closing to your first mortgage payment |
Closing Cost Examples at Different Price Points
Let me show you what closing costs look like for typical purchases in Surrey and the Fraser Valley:
| Cost | Amount |
|---|---|
| Property Transfer Tax | $0 (exempt) |
| Legal Fees | $1,500 |
| Title Insurance | $350 |
| Home Inspection | $500 |
| Property Tax Adjustment | $1,500 |
| Home Insurance (first year) | $1,200 |
| Strata Doc Review | $350 |
| Total Closing Costs | $5,400 |
| Cost | Amount |
|---|---|
| Property Transfer Tax | $20,000 |
| Legal Fees | $1,800 |
| Title Insurance | $400 |
| Home Inspection | $600 |
| Property Tax Adjustment | $2,200 |
| Home Insurance (first year) | $1,800 |
| Appraisal | $400 |
| Total Closing Costs | $27,200 |
Calculate Your Property Transfer Tax
See your exact PTT amount and check if you qualify for any exemptions.
Property Transfer Tax — Your Largest Closing Cost
For most buyers, the property transfer tax (PTT) is the single largest closing cost. It's calculated on a tiered system based on your purchase price:
- 1% on the first $200,000
- 2% on $200,001 to $2,000,000
- 3% on $2,000,001 to $3,000,000
- 5% on amounts above $3,000,000
First-time buyers may qualify for a full exemption on homes up to $835,000. For the complete breakdown of exemptions and how to calculate your PTT, read my BC Property Transfer Tax guide.
CMHC Mortgage Insurance
If your down payment is less than 20% of the purchase price, you're required to purchase mortgage default insurance (commonly called “CMHC insurance”). This protects the lender — not you — if you default on your mortgage.
| Down Payment | Insurance Premium |
|---|---|
| 5% – 9.99% | 4.00% of mortgage amount |
| 10% – 14.99% | 3.10% of mortgage amount |
| 15% – 19.99% | 2.80% of mortgage amount |
| 20% or more | No insurance required |
The premium is added to your mortgage balance, so you don't pay it out of pocket at closing. However, it increases your total mortgage amount and your monthly payments.
💡 Example
How to Budget for Closing Costs
Here are my recommendations for budgeting closing costs based on years of helping buyers in Surrey and the Fraser Valley:
- First-time buyers (PTT exempt): Budget $5,000–$8,000 for closing costs on properties up to $835,000
- Repeat buyers: Budget 2%–3.5% of the purchase price — primarily driven by PTT
- New construction: Add 5% GST to your budget (minus any GST rebate you qualify for)
- Keep a buffer: Always have an extra $2,000–$3,000 beyond your estimates for unexpected costs
✅ Don't Confuse Closing Costs with Down Payment
For information on how much you need for a down payment specifically, check out my guide on down payment requirements in BC.