Ever wonder how much cash you actually need on closing day in Langford? You are not alone. Between taxes, inspections, legal work, and adjustments, it can feel hard to pin down a number. This guide breaks it all down in plain language so you can plan with confidence and avoid last‑minute surprises. Let’s dive in.
What closing costs cover in BC
Closing costs are the one‑time expenses you pay to complete your purchase. In British Columbia, common items include:
- Property Transfer Tax (PTT)
- Legal or notary fees and disbursements
- Title insurance
- Home inspection
- Lender appraisal or valuation
- Prorated property taxes and strata adjustments
- GST on new builds and possible rebates
- Home insurance, utilities setup, and moving costs
Not every buyer pays every item. Your total depends on the property type, price, your lender’s requirements, and whether you qualify for first‑time buyer relief.
Property Transfer Tax in BC
PTT is a provincial tax paid when you register your home purchase. The calculation is based on the fair market value:
- 1% on the first $200,000
- 2% on the portion over $200,000 up to $2,000,000
- 3% on the portion over $2,000,000
- An additional 2% applies to the portion over $3,000,000 (rare for typical Langford purchases)
BC offers a first‑time home buyer exemption that can reduce or eliminate PTT if you meet residency and price eligibility. Thresholds can change, so confirm your status and the current limits before you budget around an exemption.
Sample PTT calculations
- $450,000 purchase: $7,000 (unless exempt as a first‑time buyer)
- $700,000 purchase: $12,000
- $1,000,000 purchase: $18,000
- $1,500,000 purchase: approximately $28,000
- $2,500,000 purchase: approximately $53,000
PTT is collected at closing. If you plan to claim an exemption, your lawyer or notary will prepare the necessary forms and documentation.
Legal fees and disbursements
Your lawyer or notary handles title searches, document preparation, mortgage registration, trust accounting, and funds disbursement. Typical buyer costs include:
- Legal or conveyancing fee: about $800 to $2,000 or more, depending on complexity
- Disbursements and registries: commonly $200 to $800
- Strata and mortgage filings: often $100 to $300 in added fees
Most firms collect a small retainer and require the balance shortly before completion.
Title insurance
Title insurance protects you and your lender against certain title and registration risks. It is a one‑time premium paid at closing. Typical premiums vary by purchase price:
- Under $500,000: about $100 to $300
- $500,000 to $1,000,000: about $200 to $600
- Over $1,000,000: several hundred dollars to around $1,000 or more
Discuss coverage and alternatives with your lawyer. Title insurance can be cost‑effective compared with extensive extra searches.
Home inspection costs
An inspection helps you understand the property’s condition before you remove subjects. Typical ranges are:
- Condo or smaller home: $300 to $500
- Average detached home: $400 to $800
- Specialist add‑ons (roof, chimney, septic, mold, sewer scope, electrical): $200 to $1,200 each
For strata properties, also review strata minutes, depreciation reports, and the contingency reserve to understand building‑wide maintenance.
Appraisal and lender valuation
Your lender may order an appraisal to confirm market value for mortgage approval. Typical fees are $300 to $700. Some lenders use automated tools or waive in‑person appraisals for certain products, so ask your lender what is required.
Strata costs for condos and townhomes
Strata purchases add a few items to your checklist:
- Form B (Strata Information Certificate): commonly $100 to $200 or more
- Strata documents: review depreciation reports, contingency reserve fund data, and recent minutes for any upcoming special levies
- Strata fee verification: not a closing cost, but confirm any arrears or levies that might be due near completion
GST on new builds and rebates
Most resale homes are exempt from GST. New residential construction is generally subject to 5% GST. How you pay it depends on the builder’s contract. Some prices are quoted inclusive of GST, while others add GST at completion and handle rebates separately.
There are federal new housing rebates for eligible owner‑occupiers, with value thresholds that can change. Confirm how GST is handled in your contract and whether you qualify for a rebate before you finalize your budget.
Mortgage default insurance and down payment
If your down payment is under 20%, the mortgage will include default insurance from CMHC or another insurer. The premium is a percentage of the mortgage amount. It is usually added to your mortgage, not paid in cash at closing, but it affects your monthly payments and overall cost.
Typical Langford price bands
Langford offers a range of options, and price affects your closing costs:
- Entry condos: about $350,000 to $550,000
- Townhomes or smaller single‑family: about $600,000 to $850,000
- Detached homes: about $800,000 to $1,500,000 or more
Real‑world buyer examples
Below are examples that reflect common Langford scenarios. These are illustrative. Your actual costs will vary by property, lender, and service providers.
Scenario A: First‑time buyer, resale condo at $450,000
- PTT: $0 (assuming full first‑time buyer exemption and eligibility)
- Legal and disbursements: about $1,800
- Title insurance: about $200 to $300
- Home inspection: about $350
- Appraisal (if required): about $450
- Property tax proration and adjustments: example $500
Estimated cash at closing (excluding down payment and lender deposits): roughly $3,300 to $3,900.
Note: If you do not qualify for the exemption, PTT on $450,000 is about $7,000, which significantly increases your required cash.
Scenario B: Move‑up buyer, resale townhome at $750,000
- PTT: about $13,000
- Legal and disbursements: about $1,800
- Title insurance: about $300 to $500
- Home inspection: about $450
- Appraisal (if required): about $450
- Property tax proration and adjustments: example $800
Estimated buyer‑side closing costs: roughly $16,800 to $17,500.
Scenario C: New‑build detached home at $950,000 (builder sale)
- GST: 5% of $950,000 = $47,500 (confirm whether price is inclusive and whether a rebate applies)
- PTT: standard rules apply unless you qualify for an exemption
- Legal and disbursements: about $1,800
- Title insurance: about $400 to $600
- Home inspection: optional but common, about $400 to $700
Bottom line: GST is often the single largest incremental cost on new builds. Confirm your contract price, GST treatment, and any rebates so you know your net amount due on completion.
Scenario D: Move‑up buyer, resale detached home at $1,500,000
- PTT: approximately $28,000
- Legal and disbursements: about $1,800
- Title insurance: about $600 to $900
- Home inspection: about $550 to $900
- Appraisal: about $450 to $700
Estimated buyer‑side closing costs: roughly $31,000 to $31,500.
How to budget and avoid surprises
- Get a mortgage pre‑approval that lists assumed closing costs. Ask your lender which items they require.
- Verify first‑time buyer eligibility and gather documents early if you plan to claim the exemption.
- Ask the listing agent or builder whether the price includes GST for new‑builds and how rebates are handled.
- Budget a contingency. A practical rule of thumb is 1% to 3% of the purchase price for closing and unexpected items.
- For strata purchases, request the Form B and full strata document package as early as possible. Review depreciation reports and minutes for potential special levies.
- Confirm title insurance with your lawyer and compare coverage with any additional searches.
- Arrange home insurance to take effect on completion day. Lenders require proof of insurance.
- Confirm wire instructions directly with your lawyer. Protect yourself from fraud by verifying account details by phone.
- For new‑builds, review the contract carefully. Note deposit schedules, completion dates, GST treatment, inclusions, and warranty coverage.
Your path to closing with confidence
Understanding your closing costs lets you plan your cash, negotiate with clarity, and move through completion day without stress. Whether you are buying your first condo, upsizing to a townhome near parks, or choosing a new‑build with modern finishes, a clear budget is your best tool.
If you would like help mapping your specific numbers for a Langford purchase, reach out to Kash Burley for local guidance tailored to your goals.
FAQs
What closing costs do Langford, BC buyers typically pay?
- Common items include Property Transfer Tax, legal and disbursement fees, title insurance, inspection, appraisal, and prorated taxes or strata adjustments, plus GST on most new builds.
How much PTT is due on a $700,000 Langford home?
- Using BC’s rates, PTT is about $12,000 on a $700,000 purchase.
Do first‑time buyers in Langford pay PTT?
- BC offers a first‑time home buyer exemption that can reduce PTT to zero if you meet residency and price eligibility; confirm current thresholds before relying on it.
What is different about closing costs for new builds in Langford?
- Most new builds add 5% GST at completion unless the price is quoted inclusive, and you may be eligible for a federal rebate; resale homes are generally exempt from GST.
What strata‑specific costs should condo or townhome buyers expect?
- Budget for the Form B certificate fee, plus careful review of strata documents for any upcoming special levies that could affect your short‑term costs.
When are closing funds due in BC transactions?
- Your lawyer or notary will request certified funds or a wire shortly before completion to cover PTT, legal fees, adjustments, and any balance due after your mortgage advances.
