What buying actually costs
Beyond the price: the taxes, premiums and fees that decide how much cash you need on completion.
Property transfer tax
BC charges transfer tax on a sliding scale: 1% on the first $200,000, 2% from $200,000 to $2,000,000, 3% from $2,000,000 to $3,000,000, and a further 2% on the residential value above $3,000,000 — so 5% at the top band.
On a $1,200,000 purchase that is $22,000, due on completion in cash. It cannot be added to the mortgage.
The first-time buyer exemption
Since 1 April 2024, a qualifying first-time buyer pays no transfer tax on the first $500,000 of a home priced up to $835,000 — a saving of up to $8,000. Between $835,000 and $860,000 the exemption tapers away; at $860,000 and above there is none.
You must be a Canadian citizen or permanent resident, have lived in BC for a year or filed two BC tax returns in the past six, never have owned a principal residence anywhere, and move in within 92 days.
Down payment minimums
The minimum is tiered: 5% of the first $500,000, 10% of the portion between $500,000 and $1.5M, and 20% at $1.5M and above. A $1.2M purchase needs $95,000, not $60,000.
Mortgage insurance is unavailable at $1.5M or more, so 20% there is a hard floor rather than a preference.
CMHC premiums
Below 20% down, insurance is required and the premium is added to the mortgage: 2.80% of the loan between 80–85% loan-to-value, 3.10% between 85–90%, and 4.00% between 90–95%.
The rest of the cash to close
Budget $1,500–$2,500 for a conveyancing lawyer or notary including title insurance, $550–$700 for an inspection, and a property tax adjustment reimbursing the seller for the part of the year you will own.
Run your own numbers in the True Cost calculator →
Before you rely on any of this
These are the current rules as we understand them, written to be checked — not advice. Rates, thresholds and exemptions change. Confirm anything that affects a decision with your lender, lawyer or notary, and accountant.