The purchase price is only the headline. Between signing and getting your keys — and in every year after — there are costs and taxes every BC buyer should budget for. Here's the full picture, with no surprises.
One-time costs when you buy
- Property Transfer Tax (PTT). BC's biggest closing cost: 1% on the first $200,000, 2% up to $2 million, 3% above that, plus a further 2% on any residential value over $3 million. First-time buyers and buyers of new homes may qualify for generous exemptions — see my first-time buyer programs guide.
- GST — new homes only. 5% on newly built homes (resales are GST-exempt). First-time buyers can have it fully rebated on new homes up to $1 million.
- Legal or notary fees. Typically in the low thousands for conveyancing — transferring title, registering the mortgage, handling funds.
- Home inspection. Typically a few hundred dollars, and money well spent — this is where my construction background helps you read the report critically.
- Appraisal & title insurance. Often required by your lender; usually a few hundred dollars each.
- Adjustments. At completion, you reimburse the seller for anything prepaid past your possession date — property taxes, utilities, strata fees.
Rule of thumb: beyond your down payment, set aside roughly 2–4% of the purchase price for closing costs. On an $800,000 home, that's $16,000–$32,000 — much less if exemptions apply to you.
Annual obligations once you own
- Property tax — billed by your municipality every year; most owners with a principal residence claim the Home Owner Grant to reduce it.
- Vancouver Empty Homes Tax — if your property is in the City of Vancouver, you must submit a declaration every year. Homes left vacant more than six months pay 3% of assessed value. Lived-in homes pay nothing — but everyone must declare.
- BC Speculation & Vacancy Tax — a separate annual declaration for most Metro Vancouver areas. As of 2026 the rate is 1% for Canadian citizens and permanent residents and 3% for foreign owners — but principal residences and tenanted homes are generally exempt. Declare, claim your exemption, pay nothing.
- Federal Underused Housing Tax — good news: this federal tax was eliminated as of the 2025 calendar year, one less filing to worry about.
Thinking of selling within two years? Read this first
The BC Home Flipping Tax applies to homes sold within two years of buying: 20% of the profit if you sell within the first year, tapering to zero at the two-year mark. Exemptions exist for life events — divorce, job relocation, death, and others — but if your plans might change quickly, this tax belongs in your math from day one.
Please note: This article is general information, not legal, tax, or financial advice. Tax rules and rates change; always confirm current details on official government pages and consult a qualified professional about your specific situation. Figures current as of August 2026.