Closing Costs When Buying a Home in BC: What to Budget
Quick answer: On top of your down payment, budget for BC property transfer tax (unless you qualify for an exemption), legal or notary fees, a home inspection, property tax and utility adjustments, home insurance, and possibly GST if the home is newly built. Your lawyer or notary will give you an exact statement before completion.
Closing costs catch many buyers off guard. They're paid on or before completion day, usually from your own savings rather than your mortgage. Here's what to expect when you buy on East Hill or anywhere in Vernon.
General information only, current as of 2026. Tax rates and program thresholds change. Confirm with your lawyer or notary, lender, accountant and the Province of BC.
Taxes: property transfer tax and GST
Property transfer tax
BC's property transfer tax (PTT) is usually the largest closing cost. It's charged when you register the change of ownership at the Land Title Office, based on the property's fair market value. As of 2026, the general rates are:
- 1% on the first $200,000;
- 2% on the portion from $200,000 to $2,000,000;
- 3% on the portion above $2,000,000; and
- an additional 2% on the residential portion above $3,000,000.
First-time home buyers' exemption
If you qualify as a first-time buyer, you may pay less or no PTT. For properties registered on or after April 1, 2024, the thresholds are:
- full exemption on homes up to $500,000;
- up to $8,000 off on homes between $500,000 and $835,000; and
- a reduced exemption between $835,000 and $860,000, phasing out completely at $860,000.
There are other eligibility conditions, and larger lots are treated differently, so check with your lawyer or notary.
GST on newly built homes
Resale homes generally don't have GST, but newly built or substantially renovated homes usually do. The federal first-time home buyers' GST rebate can cover up to $50,000 of GST on a new home used as your primary residence. The full rebate applies to homes up to $1 million, reducing gradually until it disappears at $1.5 million. East Hill is mostly established homes, but infill and new builds do come up, so it's worth asking whether GST applies.
Professional fees and inspections
Legal or notary fees
In BC, a lawyer or notary public handles the conveyance: reviewing the title, preparing documents, registering the transfer and mortgage, and moving the money. Fees vary, and there are also disbursements such as search and registration costs. Ask for a quote up front.
Inspections and reports
- Home inspection: especially important for East Hill's older homes. BC home inspectors must be licensed by Consumer Protection BC.
- Specialist inspections: for older homes, you may want a sewer line camera inspection, an oil tank search, or an electrical assessment.
- Appraisal: your lender may require one, and sometimes the buyer pays.
- Strata documents: if you're buying a strata property, you may pay for documents and forms from the strata management company.
Adjustments and mortgage costs
Adjustments on completion day
Your lawyer or notary will prepare a statement of adjustments to split ongoing costs fairly between you and the seller. Common items include:
- Property taxes: if the seller has prepaid the year's taxes, you'll reimburse them for the days after completion.
- Utilities: water and sewer charges may be adjusted depending on the billing period.
- Strata fees: for strata homes.
Mortgage-related costs
- Mortgage default insurance premium: if your down payment is under 20%. This is usually added to the mortgage.
- Title insurance: many lenders require it, and your lawyer or notary will arrange it.
- Interest adjustment: depending on your completion date, your lender may charge interest to line up with your first payment.
Getting settled
- Home insurance: your lender will require proof before completion.
- Moving costs: movers, truck rental or storage.
- Utility setups: in Vernon, electricity is provided by BC Hydro and natural gas by FortisBC.
- A cushion for repairs: older homes often need something in the first year.
Plan ahead
Ask your lawyer or notary for an estimate of closing costs as soon as your offer is accepted, and keep your closing funds liquid. Our buying in East Hill page covers the full buying process, and our FAQ answers other common questions. When you're ready to look, browse the live MLS® search for East Hill homes for sale.
FAQ
What's the biggest closing cost when buying on East Hill?
For most buyers, it's BC property transfer tax, unless you qualify for the first-time home buyers' exemption or another exemption.
Do I pay GST when buying a resale home in Vernon?
Generally not. GST usually applies to newly built or substantially renovated homes. Eligible first-time buyers may get a rebate of up to $50,000 on a new home.
Can I add closing costs to my mortgage?
Usually not. Most closing costs must be paid from your own funds, although a mortgage insurance premium is typically added to the mortgage. Ask your lender.
Planning a purchase on East Hill? Call or text Sean at 778-363-0542, or call the Sarah AI info hotline any time at 604-227-4810.
Featured photo: stock image from Unsplash, for illustration.
