Closing costs are the fees associated with the purchase of your home that is in addition to the actual purchase price, such as legal fees and disbursements, land transfer taxes and moving expenses.

Legal Fees
Legal representation will cost you approximately $1800 for a purchase and $1600 if you are selling a property at the same time.  Please note these costs vary depending on which lawyer or notary you choose and some lenders have a designated lawyer/notary list.

Title Insurance/Survey Certificate 

Approximately $150 - $300.  Most lenders require Title Insurance and this is arranged by the lawyer/notary that you will be using for the mortgage.  The cost is based on the value of the property and can be higher than $300 for higher-end properties and the lawyer will confirm the exact cost.

Home Insurance 
Insurance that you buy to cover the replacement cost of your home should it be damaged by fire or other accidents.  This is different from mortgage life insurance, which pays the outstanding balance of your mortgage in full if you die.
Please note strata properties typically have their own coverage which will be detailed in the strata minutes.

Property Appraisal - Approximately $400 
For more expensive properties and/or unique properties the appraisal cost can be higher.
The property is evaluated by a professional appraiser to determine the market value of the property. This is done on conventional mortgages, private transactions and properties to be used for investment purposes.  This is to ensure that: 
    a) the lending institution is not over lending on the property and; 
    b) to protect the borrower from overpaying.
If the down payment is less than 20% a physical appraisal is not normally required.  The insurer has an automated system that determines the value.

Home Inspection - Approximately $500
An inspection is a thorough evaluation of the structure, systems and components of a home. The inspection report is for the sole benefit of the buyer and is not required by the bank.  

Property Transfer Tax
When buying a home in BC, the buyer automatically pays the provincial Property Transfer Tax (PTT) unless you are a 1st time home buyer and meet the following criteria

The amount of the Property Transfer Tax is 1% on the first $200,000.00 of the property’s fair market value, 2% on the amount between $200,000 and $2,000,000, and 3% of the remaining fair market value.

For example, if the fair market value of the property is $200,000.00, the tax payable would be $2,000.00 (1% of $200,000.00).  If the fair market value of the property is $400,000.00, the tax payable would be $6,000.00 (1% on the first $200,000.00 = $2,000.00 and 2% on the remaining $200,000.00 = $4,000.00). 

Property transfer tax has to be paid on closing and should not be confused with property taxes.

This lists only the major items. This information is being provided to assist in the planning of a home purchase. It is not intended to be legal advice and the information set out may not be applicable in all cases.