Closing Terms & Costs

When you and the seller come to an agreement on the price to be paid for the house, you must provide a deposit. A deposit is an advance payment of part of your down payment and is paid at the time of signing the Agreement of Purchase of Sale.

The Agreement of Sale is a legal document the buyer and seller approve detailing the price & terms of the transaction.

When negotiating the cost of the house you want to purchase, it is important to keep in mind that you will also be required to pay property tax. Property tax is paid on privately owned property and is usually paid semi-annually or monthly. The amount is based on local tax rates and assessed property value. In British Columbia, we have also have a property purchase tax which is due at the time of closing. This is based on the selling price and is 1% of the first $200,000, then 2% thereafter. Use the PTT Calculator. As a first-time buyer, this tax is waived if your purchase price is $425,000 or less, and a partial exemption if you buy between $425,001 - $450,000. For a detailed breakdown, please click here:

GST only applies on New home purchases in Real Estate. For details, click here: "

Basic information on HST (Harmonized Sales Tax) for Residential Real Estate. For details click here:

Other than the deposit and down payment, you should keep in mind that you will likely also be paying for a home inspection an examination of the structure and mechanical systems to determine a home's safety and makes the potential homebuyer aware of any repairs that may be needed.

Considering Insurance on Your Mortgage

Talk to your mortgage professional about insurance protection against your mortgage in case of death, accident, or illness. There are many insurance options to choose from. See our Mortgage Insurance page for more details.

Closing Costs

Appraisal Fee

The process of assessing the value of a home, usually to determine a selling price. This value may or may not be the same as the purchase price of the home.


Money that is put towards the purchase of a home, to prove the buyer is committed to fulfilling the purchase transaction. The amount of the deposit varies based on the purchase price.

Down Payment

A partial payment made at the time of purchase. First-time home buyers are allowed to put as little as zero down when purchasing a property.

Home Inspection Fee

The cost paid to a building inspector to have an examination of the house prior to purchase, usually selected by the purchaser.

Land or Property Transfer Tax

A tax paid on property that changes hands. First time buyers may be eligible for a rebate in certain provinces.

Legal Fees

The cost paid to have a lawyer finalize the property transfer between the seller and the purchaser.

Mortgage Loan Insurance

Mortgage loan insurance enables home buyers to purchase a home with as little as zero down payment. The amount of the insurance premium depends on the amount borrowed from the lender.

Title Insurance (optional)

Title Insurance provides the purchaser with coverage against title risks inherent in real estate transactions (including title fraud) for as long as you own your home.