Closing costs checklist

Harmonized Sales Tax (HST) Buyers must pay a 12% federal Harmonized Sales Tax (HST) on the sale price of a new home (not a resale home). There are rebates.

• Federal New Home Rebate: is a rebate on 36% per cent of the federal portion of the HST for homes priced at less than $450,000.
• Provincial New Home Rebate: is a rebate of 71.43% of the provincial portion of the HST to a maximum of $26,250.

For information visit http://www.cra-arc.gc.ca/gncy/hrmnztn/bc/menu-eng.html.

Buyers will also pay the HST on services such as appraisals and home inspections, survey fees and legal/notary fees.

Property Transfer Tax

Payable at the time the property is registered at the Land Titles office. The rate is 1% per cent on the first $200,000 and 2% on the remainder. There is a rebate for first-time buyers. For information visit www.gov.bc.ca and type in PTT rebate in the search box. You will be taken to an information page.

Mortgage application fee

Lenders may charge your clients a fee to process a mortgage application.

Appraisal fee

To get a mortgage your clients will typically need an appraisal. Fees vary- $150-$350.

Mortgage broker's fee

Typically a mortgage broker is paid by the lender. But sometimes your fee can be as high as 2%.

Property taxes

Some lenders require property buyers to add property tax installments to monthly mortgage payments.

Mortgage insurance

The federal government requires high-ratio mortgages (with less than 20% down payment) to be insured against default. The cost ranges between 1.25 to 3.75 per cent of the mortgage amount which is added to the mortgage principal.

Land survey fee

Lenders may require a survey of the property. Survey costs vary from $150-$350.

Home inspector’s fee

Most clients (and most lenders) want an offer subject to a professional inspection. Fees vary depending on the property. If the property needs a major repair, such as a new furnace or roof, you  can use this to negotiate a better deal.$150-350. 

Mortgage life insurance

If you  pass away, this type of insurance will pay off the balance owing on their mortgage.

Fire and liability insurance

Most lenders require property buyers to carry fire and extended coverage insurance and liability insurance.

Legal fees

Lawyers charge for a variety of services such as reviewing the offer to purchase, searching the title, drawing up mortgage documents, overseeing the closing, and disbursements and other costs for conducting a title search, preparing the title deed, preparing and registering the mortgage. Lawyer/Notaries fees may vary - at least $400.

More costs and fees

Don’t forget   about property taxes, utility bills, moving expenses, new lawnmowers, hoses, ladders, paint, carpet, appliances and more.


 Please contact service providers for a quote, the prices given are estimated.

Source: REBGV