Closing Costs When Buying a Home in BC

Short answer: On top of your down payment, closing costs in Vernon usually include BC property transfer tax (the big one), legal or notary fees, a home inspection, title insurance, property tax and utility adjustments, home insurance and moving costs. New homes may also carry GST. Plan for these to be a meaningful separate amount, and get real quotes early so there are no surprises on completion day.

I’ve watched plenty of buyers do a great job saving their down payment and then get caught off guard in the last two weeks by the “other” costs. None of them are hidden, but they add up. Here’s how I walk my buyers through them, using the rules in place as of 2026.

What are closing costs in BC?

Closing costs are everything you pay to complete the purchase that isn’t the purchase price itself. Some are paid up front (like a home inspection), most are paid through your lawyer or notary on completion, and a few show up in the first months after you move in.

The important thing to know: your lender won’t usually let you roll most of these into your mortgage. They need to come from your own savings, so they belong in your budget from day one. My Buying a Home page covers the full process if you want the big picture first.

How much is property transfer tax in BC?

For most Vernon buyers, property transfer tax (PTT) is the largest closing cost. It’s calculated on the fair market value of the property and paid when your transfer is registered at the Land Title Office. As of 2026, the 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
A further 2% on the residential portion above $3,000,000

Some quick examples using those rates:

$600,000 home: $2,000 + $8,000 = $10,000
$800,000 home: $2,000 + $12,000 = $14,000
$1,000,000 home: $2,000 + $16,000 = $18,000

The good news is that many buyers qualify for an exemption. First-time buyers can get a full exemption on the first $500,000 for homes with a fair market value up to $835,000, with a partial exemption up to $860,000. Buyers of newly built homes used as a principal residence can be fully exempt up to $1,100,000, phasing out by $1,150,000. There are residency, citizenship and occupancy requirements for both, which I explain in detail in BC property transfer tax and the first-time buyer exemption.

Planning to buy in Vernon soon? Get pre-approved first, then text me at 778-363-0542 and I’ll send you new listings that match what you want, or book a 10-minute chat. Quick questions any time: call Sarah, my 24/7 AI info line, at 604-227-4810.

What do legal or notary fees cost?

In BC, a lawyer or notary handles the conveyancing: reviewing title, preparing the transfer and mortgage documents, collecting and paying out funds, registering everything at the Land Title Office and filing your PTT return.

Their bill has two parts: the professional fee, plus disbursements (title searches, registration fees and similar out-of-pocket costs), with taxes on top. Fees vary between offices and with how complicated your purchase is, so I always suggest calling two or three local lawyers or notaries for a written quote before you write an offer. If you’re buying a strata, acreage or a property with an unusual title, ask whether that changes the fee.

What other costs come before completion?

These are the ones you pay during your subject period, usually before you’ve committed to the purchase:

Home inspection. Highly recommended for resale homes, and paid directly to the inspector. See what to expect from a home inspection in Vernon.
Specialty inspections. Septic, well water, sewer scope, radon or oil tank searches if the property calls for them. Rural properties in the BX, Lavington or Commonage often need the septic and well checked.
Appraisal. Some lenders charge for this, some cover it. Ask your broker.
Strata documents. For condos and townhomes, the strata’s documents (minutes, bylaws, financials, depreciation report, Form B) sometimes come with a fee.

What gets adjusted on completion day?

Your lawyer prepares a statement of adjustments that splits ongoing costs between you and the seller as of the adjustment date. The common ones:

Property taxes. In Vernon and Coldstream, the year’s property taxes are billed once a year. If the seller has already paid the full year, you reimburse them for the days after you take over. If they haven’t, you get a credit.
Utilities. Water, sewer and garbage charges are usually adjusted or read at completion.
Strata fees. Prorated for the month you move in.
Fuel. If a home has a propane or oil tank, the fuel left in it may be adjusted too.

After you move in, don’t forget to apply for the BC Home Owner Grant if you qualify; it’s claimed each year with your property taxes. There’s more on that in Vernon property taxes and the Home Owner Grant.

Do I pay GST on a home in Vernon?

Resale homes: generally no. GST normally applies to new homes (and substantially renovated ones) at 5%, and it’s often built into or added to the builder’s price, so read the contract carefully.

If you’re a first-time buyer purchasing a new home from a builder, the federal First-Time Home Buyers’ GST rebate can eliminate GST on new homes up to $1 million and reduce it on homes between $1 million and $1.5 million, for agreements signed on or after May 27, 2025 and before 2031. There are eligibility rules, so confirm with the builder and your accountant.

What about mortgage costs and insurance?

If your down payment is under 20%, you’ll need mortgage default insurance. The premium is usually added to your mortgage rather than paid in cash, but it’s still a cost, and your broker can show you the exact number. Check the minimum down payment rules on the Financial Consumer Agency of Canada site and run your numbers on my mortgage calculator.

You’ll also need:

Home insurance in place before completion. Your lender will ask for proof. In parts of the Okanagan with wildfire exposure, get a quote during your subject period, not after.
Title insurance, which many lenders require and many lawyers recommend. It’s a one-time premium.
Possible lender fees, such as an appraisal or a penalty if you’re breaking an existing mortgage.

What costs do people forget?

The small stuff adds up: movers or a truck rental, changing the locks, window coverings, a few basic tools, utility hookup fees, and a cushion for the first repair. If you’re relocating from outside the Okanagan, add travel for viewings and possibly a short-term rental between homes.

How should I budget for closing costs?

Here’s the approach I suggest:

Get pre-approved first so you know your price range. My pre-approval page is a good place to start.
Calculate property transfer tax at your target price and check whether you qualify for an exemption.
Get written quotes from a lawyer or notary and a home inspector.
Ask your broker about insurance premiums, appraisal and lender fees.
Add adjustments, moving costs and a buffer for surprises.

Every purchase is different, so please talk to your lawyer or notary, your mortgage broker and, where taxes are involved, your accountant before you rely on any number here. I’m happy to help you build a realistic estimate for a specific Vernon or Coldstream home.

Frequently asked questions

When do I pay closing costs in BC?

The home inspection and similar costs are paid during the subject period. Property transfer tax, legal fees and adjustments are paid through your lawyer or notary, usually a few days before your completion date.

Can I add closing costs to my mortgage?

Generally no. Lenders expect closing costs to come from your own funds. Mortgage default insurance premiums are the main exception, since they’re usually added to the mortgage.

Is property transfer tax paid on the purchase price or assessed value?

It’s calculated on the property’s fair market value at registration, which in an arm’s-length sale is normally the purchase price, not the BC Assessment value.

Do first-time buyers pay less in closing costs?

They can. Qualifying first-time buyers may be exempt from property transfer tax on the first $500,000 for homes up to $835,000, with a partial exemption up to $860,000, as of 2026.

More Vernon guides

Questions about buying or selling in Vernon?

I’m Sean Phillips, a REALTOR® with Coldwell Banker Executives Realty in Vernon, BC. I live in Okanagan Landing, and I help buyers and sellers across Vernon, Coldstream, SilverStar and the North Okanagan.

Text or call Sean: 778-363-0542
Call or text Sarah, my 24/7 info line: 604-227-4810

Book a 10-minute chat with Sean

This article is general information as of fall 2026, not legal, tax or financial advice. Rules, fees and conditions change, so confirm details with the appropriate professional or authority before making a decision.

Featured photo by Tierra Mallorca on Unsplash.

Closing Costs When Buying a Home in Vernon, BC (2026 Guide)