Presale Closing Costs in BC

The quick summary

Budget 3–5% of the purchase price for closing costs on a typical BC presale. On a $700,000 condo, that's $21,000–$35,000 above your purchase price and deposits. Some of that comes back as rebates if you qualify. None of it is negotiable with the developer.

Here's what makes up that number.

Property Transfer Tax (PTT)

PTT is a provincial tax on the transfer of real estate. The rate is 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, and 3% above that. For a $700,000 condo, that's $2,000 + $10,000 = $12,000.

The good news: newly built homes priced under $1,100,000 are exempt from PTT if you're a Canadian citizen or permanent resident who will occupy the home as your principal residence. This exemption is significant — on a $700,000 home, it saves you $12,000. Confirm eligibility with your lawyer before closing. There are conditions around prior ownership, occupancy intent, and citizenship that can disqualify you.

The additional 20% Foreign Buyers Tax also applies to transfers involving foreign nationals in designated areas. If that's relevant to your situation, get advice from a BC real estate lawyer before you sign anything.

GST

New homes are subject to 5% GST. On a $700,000 purchase, that's $35,000. There's a GST rebate available for primary residences, but it requires the home to be priced under $1,000,000 and you to actually move in (or a qualifying family member).

The rebate works on a sliding scale. As of early 2026, the rebate has been enhanced for first-time buyers — maximum rebate is up to $50,000 depending on purchase price. For a home priced around $700,000, the rebate can eliminate most of the GST owing. But the mechanics are specific: you typically assign the rebate to the developer at closing, and the developer credits it against your closing costs, so you may not feel the GST at all — but you need to qualify.

If you're buying as an investor and not occupying the home, the full 5% GST applies and there's no rebate. You may be able to claim an ITC if you're registered for GST and renting the unit out, but this requires proper tax planning in advance.

Legal fees

You need a lawyer to complete a real estate purchase in BC. For a straightforward condo purchase, budget $1,500–$2,500 for legal fees and disbursements. New construction transactions are generally less complex than resale, but your lawyer still needs to review the disclosure statement, title, strata documents, and the completion adjustments.

Don't use the developer's recommended lawyer without independent research. You're entitled to your own legal representation and it's in your interest to use someone who works for you, not someone the developer refers you to regularly.

Completion adjustments

At closing, you'll be charged a pro-rated share of strata fees, property taxes, and any other prepaid costs covering the period from your completion date to the end of the payment period. This typically adds up to a few hundred to a couple of thousand dollars depending on the time of year. Your lawyer will prepare a statement of adjustments that shows exactly what you owe.

Watch for developer-specific charges in the completion adjustments. Some developers charge for items like Tarion or warranty enrolment fees, municipal development cost charges that weren't included in the purchase price, or utility connection fees. These should be disclosed in the contract but buyers often don't read that section carefully. Ask your lawyer to walk you through the adjustments before closing day.

Home insurance

Your mortgage lender will require proof of property insurance before advancing funds. For a condo, this is contents and improvements insurance, the strata's master policy covers the building structure. Budget $600–$1,200 per year for condo insurance. You'll need to set this up before closing day.

Mortgage costs

If your down payment is less than 20%, you'll need CMHC mortgage insurance, a premium of 2.8–4% of the insured mortgage amount, added to your mortgage. This isn't paid at closing out of pocket, but it does increase your mortgage balance and affects your monthly payments.

Some lenders charge appraisal fees ($300–$500) or mortgage setup fees. Confirm all costs with your mortgage broker before you commit to a lender.

Example: $700,000 condo, first-time buyer

This is an estimate for illustration purposes. Your actual costs depend on your specific situation, purchase price, residency status, and occupancy intent. Always confirm with your lawyer and mortgage broker before completion.

The costs that catch buyers off guard

The most common surprise at closing is the GST, especially for buyers who assumed it was already included in the purchase price. It isn't. Neither is PTT. Confirm with the developer in writing what's included and what's additional before you commit.

The second surprise is developer-specific adjustments, warranty fees, development levies, or utility connection charges that are legitimate under the contract but that buyers didn't read carefully. Your lawyer is your last line of defence on these. Read the statement of adjustments carefully before you authorize the transfer.