Closing costs are the expenses you pay on top of your down payment when you buy a home. They’re due on your completion or possession date, and they’re very different depending on whether you’re buying in BC or Alberta. Here’s what to expect in each province, with real numbers, so you can plan early.
The short version
| British Columbia | Alberta | |
|---|---|---|
| Biggest cost | Property transfer tax | Legal fees |
| Provincial transfer tax | Yes | No |
| Typical total (resale) | About 2.5% to 4% of the price | About 1.5% to 3% of the price |
Most lenders will also want to see that you have at least 1.5% of the purchase price set aside for closing costs, on top of your down payment.
British Columbia
Property transfer tax
BC charges a property transfer tax (PTT) on most purchases. It’s calculated on the home’s fair market value:
| Portion of the price | Rate |
|---|---|
| First $200,000 | 1% |
| $200,000 to $2,000,000 | 2% |
| $2,000,000 to $3,000,000 | 3% |
| Residential portion above $3,000,000 | 5% |
On a $700,000 home, that’s $12,000.
You may pay less, or nothing, if you qualify for an exemption:
- First-time buyers pay no PTT on the first $500,000 of a home worth up to $835,000, saving up to $8,000. A partial exemption applies up to $860,000.
- Newly built homes are fully exempt up to $1.1 million, with a partial exemption up to $1.15 million. You don’t need to be a first-time buyer.
You can’t combine both on the same purchase. I explain who qualifies in my guide to first-time home buyer programs, and you can check the current rules on the BC government’s property transfer tax page.
Foreign buyers may pay an additional 20% tax on residential property in many parts of BC.
Other BC costs
Your lawyer or notary will also pay Land Title Office registration fees on your behalf, which are included in their disbursements.
Alberta
Alberta doesn’t have a land transfer tax. Instead, you pay two Land Titles registration fees:
- Transfer of land fee: $50 plus $5 for every $5,000 of the property’s value
- Mortgage registration fee: $50 plus $5 for every $5,000 of your mortgage
On a $500,000 home with a $400,000 mortgage, that’s $550 plus $450, or $1,000 total. Your lawyer pays these at closing. You can see the full fee schedule on the Alberta Land Titles page.
Alberta requires a lawyer to complete a purchase. You’ll also see a Real Property Report (RPR) come up. It’s a survey showing where the home and any structures sit on the lot. The seller usually provides it, but if they don’t, it can cost several hundred dollars.
Costs in both provinces
| Cost | Typical range | Notes |
|---|---|---|
| Legal fees and disbursements | $1,200 to $2,000 | Includes title search and registration |
| Home inspection | $400 to $800 | Optional, but strongly recommended |
| Title insurance | $250 to $500 | One-time; most lenders require it |
| Appraisal | $300 to $500 | Often covered by the lender, especially on insured mortgages |
| Property tax and utility adjustments | $500 to $3,000 | Reimbursing the seller for anything they’ve prepaid |
| Strata or condo documents | Varies | Strata or condo corporations may charge for required documents |
| Home insurance | Varies | Your lender will need proof of coverage before closing |
| GST (new builds only) | 5% of the price | First-time buyers may qualify for a full or partial rebate |
| Moving costs | Varies |
Mortgage default insurance (if your down payment is under 20%) is usually added to your mortgage, so it’s not a cash closing cost. BC and Alberta don’t charge provincial sales tax on the premium, unlike Ontario, Quebec and Saskatchewan.
Real-number examples
BC: $700,000 resale home
| Not first-time | First-time buyer | |
|---|---|---|
| Property transfer tax | $12,000 | $4,000 |
| Legal fees and disbursements | $1,800 | $1,800 |
| Title insurance | $300 | $300 |
| Home inspection | $600 | $600 |
| Adjustments (estimate) | $1,000 | $1,000 |
| Approximate total | $15,700 | $7,700 |
Alberta: $500,000 resale home with a $400,000 mortgage
| Amount | |
|---|---|
| Land Titles fees | $1,000 |
| Legal fees and disbursements | $1,500 |
| Title insurance | $300 |
| Home inspection | $500 |
| Adjustments (estimate) | $1,000 |
| Approximate total | $4,300 |
These are estimates. Your lawyer will give you a statement of adjustments with your exact figures before closing.
Budgeting
Set aside a cushion beyond your down payment, and don’t empty your savings to close. New homeowners almost always have surprise costs in the first few months. I’ll help you estimate your closing costs early so there are no surprises on completion day. Start with my down payment guide.
Frequently asked questions
How much are closing costs in BC?
Closing costs on a resale home in BC typically run about 2.5% to 4% of the purchase price. Property transfer tax is usually the largest cost, though first-time buyers and new build buyers may qualify for an exemption.
How much are closing costs in Alberta?
Closing costs in Alberta typically run about 1.5% to 3% of the purchase price, among the lowest in Canada, because Alberta has no land transfer tax. Legal fees are usually the largest cost.
How much is property transfer tax on a $700,000 home in BC?
Property transfer tax on a $700,000 home in BC is $12,000: 1% on the first $200,000 and 2% on the remaining $500,000. Eligible first-time buyers would pay $4,000.
Do I pay tax on mortgage default insurance in BC or Alberta?
No. BC and Alberta do not charge provincial sales tax on mortgage default insurance premiums. Only Ontario, Quebec and Saskatchewan do.
When are closing costs paid?
Closing costs are paid on or just before your completion or possession date, usually through your lawyer or notary. You’ll receive a statement of adjustments showing the exact amounts.
Next step
Every situation is a little different. If you’d like to talk through yours, book a consultation or read more about my home purchase mortgage service.
This guide is general information, not financial or legal advice. Rules, programs and rates change, so please confirm current details with me or the official sources linked above.