Buying a home in BC is an incredibly exciting but challenging feat, and closing costs can sometimes catch first-time homebuyers off guard. So before you start mentally arranging your furniture or breaking out the paint and decor, it’s a good idea to review the total costs you’ll pay to close on a property.
In Canada, closing costs are paid upfront, and often include a down payment, land transfer tax, legal fees, title insurance, and other miscellaneous costs. To help break it all down, Zoocasa compiled estimates of what first-time homebuyers can expect to pay in 28 major markets across BC.
Note that the report’s calculations assume the following:
- The minimum down payment is made (including the initial deposit amount)
- All land transfer tax (LTT) rebates for first-time buyers are applied
- Mortgage default insurance costs are rolled into the mortgage (are not paid on closing day)
On average, buyers can expect to pay $96,078 total on closing day.
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Most expensive cities
Naturally, buying a home in one of BC’s more expensive cities will translate to larger closing costs, due to the size of the down payment. According to Zoocasa, first-time buyers in Whistler will pay the most, with an estimated closing cost of $302,192 based on the average home price of $1,373,600.
Of the closing cost total, $274,720 is covered by the down payment.
In all nine cities where the average price of a home is over $1M, buyers can expect to see closing costs of over $200,000. Of these, Burnaby has the lowest average closing cost, with a minimum down payment of $210,900 and a total closing cost of $231,990.
Least expensive cities
Finally, we get to the most affordable BC cities for first-time homebuyers. Topping the list is Kamloops and Powell River, both of which have minimum down payments under $40k, and a total closing cost of $44,236 and $49,790 respectively.
As for markets in Metro Vancouver, New West takes the cake with an average minimum down payment of $56,090 and a total closing cost of $72,308 – with Pitt Meadows close behind at $76,580.
Surprisingly, Victoria, Langley, and Surrey all fall below the BC average, with respective total closing costs of $87,793, $91,627, and $93,920.
So bottom line: If you’re looking for the most affordable market in BC, here are the top 10 cities to keep your eye on:
- Kamloops
- Powell River
- Sooke
- Campbell River
- Mission
- Abbotsford
- Kelowna
- Nanaimo
- Colwood
- Central Saanich
You can take a look at Zoocasa’s methodology for a further in-depth look at how each cost was calculated.
So there you have it, BC. Whether you’re a first-time homebuyer or not, it never hurts to weigh your options and review the total costs you’ll pay on closing day.
