When you’re preparing to buy a home—especially for the first time—it’s easy to focus solely on the purchase price. But as many new homeowners quickly discover, there are several hidden costs that come with buying real estate in British Columbia. Being aware of these costs upfront can help you plan your budget more effectively, avoid surprises, and make more confident decisions.
Below are some of the most common (and important) additional expenses to consider when buying a home in BC:
1. Property Transfer Tax (PTT)
This is often the biggest hidden cost for buyers in BC. The Property Transfer Tax is calculated as:
•1% on the first $200,000
•2% on the portion between $200,001 and $2,000,000
•3% on the portion between $2,000,001 and $3,000,000
•5% on amounts over $3,000,000 (residential properties)
For example, if you’re buying a $700,000 home, your property transfer tax would be $12,000.
✅ First-time home buyers may qualify for a full or partial exemption if the home is under a certain value and you meet other criteria. I always encourage my clients to check the current guidelines or speak with a mortgage professional.
2. Home Inspection
A professional home inspection is a crucial step that can reveal issues like mold, foundation cracks, or outdated electrical systems. While not legally required, it’s strongly recommended.
💲 Typical cost: $400–$700, depending on the size and age of the home.
3. Appraisal Fee
If you’re applying for a mortgage, your lender may require an independent appraisal to confirm the market value of the home.
💲 Typical cost: $300–$500
In some cases, your lender may cover this—but not always.
4. Legal Fees and Disbursements
You’ll need a lawyer or notary to handle the legal transfer of the property. This includes registering the title and reviewing documents.
💲 Estimated range: $1,000–$2,000 (including disbursements)
5. Title Insurance
Though optional, title insurance is often recommended (and sometimes required by your lender) to protect against potential title issues, fraud, or survey errors.
💲 Cost: Around $200–$300
6. Mortgage Insurance (CMHC Insurance)
If your down payment is less than 20%, you’re required to pay mortgage default insurance through CMHC or another insurer.
💲 This is typically rolled into your mortgage payments, but it’s good to understand the added cost.
7. Adjustment Costs (Utilities & Property Taxes)
On closing day, you may need to reimburse the seller for any prepaid expenses like property taxes, utility bills, or strata fees.
These are often pro-rated to the date of possession and calculated by your lawyer or notary.
Planning Ahead
While these costs may seem overwhelming at first, they are entirely manageable with the right guidance. The key is planning ahead and working with professionals who will walk you through each step—starting with a realtor who puts your best interests first.
As a Mission-based realtor with decades of experience and over 1,200 homes sold, I’ve helped countless buyers understand the full picture of homeownership—from the sticker price to the fine print.
📞 Thinking about buying a home in Mission, BC?
Let’s talk. I’d be happy to answer your questions, connect you with trusted mortgage brokers, and help you navigate the process with clarity and confidence.