How Much Will My Closing Costs Really Be on a Presale?

Between GST, Property Transfer Tax, legal fees, and insurance, presale closing costs can add $30,000–$80,000+ to your purchase. Here's the complete breakdown so nothing catches you off guard. 1. The Big Three: GST, PTT, and Legal Fees 🧾 GST 5% All new construction in BC is subject to 5% GST on the purchase price. Significant rebates are available for first-time buyers and primary residences. 🏛️ PTT Property Transfer Tax Normally 1% on the first $200K and 2% on the remainder. BC offers aggressive exemption programs for new builds. ⚖️ Legal Fees & Adjustments Expect $1,500–$2,500 for a lawyer or notary, plus adjustments for pre-paid property taxes and strata fees. PTT Exemption Thresholds ✅ Newly Built Home Exemption Homes under $1,100,000 may qualify for a full or partial exemption from PTT. ✅ First-Time Home Buyers' Program For homes up to $835,000 , first-time buyers can see a significant reduction in PTT. 2. Scenario A: The First-Time Buyer Purchase: 1-Bedroom Condo in Surrey City Centre for $650,000 As a first-time buyer using the home as your primary residence, you are the "winner" when it comes to rebates. Cost Item Amount Explanation Purchase Price $650,000 Base contract price. GST 5% $32,500 5% of $650,000. GST Rebate -$32,500 100% Rebate up to $50k for first-time buyers on homes <$1M. Property Transfer Tax $0 Full Exemption under the First-Time Home Buyers' Program <$835k . Legal Fees $1,800 Professional fees + disbursements. Total Closing Costs ~$1,800 Total Savings: Over $43,000 in taxes! 3. Scenario B: The Investor Purchase: 2-Bedroom Condo in Burquitlam for $950,000 Investors do not qualify for the First-Time Buyer programs, but they still benefit from the "Newly Built Home" PTT exemption. Cost Item Amount Explanation Purchase Price $950,000 Base contract price. GST 5% $47,500 5% of $950,000. GST Rebate $0 Investors generally do not qualify for the new housing rebate. Property Transfer Tax $0 Full Exemption under the Newly Built Home Exemption <$1.1M . Legal Fees $2,000 Professional fees + disbursements. Adjustments $1,500 Estimated pre-paid property taxes/strata fees. Total Closing Costs ~$51,000 Mainly comprised of GST. 4. Key Differences to Remember 1 GST Rebates are "Back-Ended" In many cases, you must pay the full 5% GST at closing and then apply to the CRA to get your rebate back later. Always confirm with…

This article is part of the PresaleProperties.com BC real estate guide library. It is intended for buyers comparing presale condos, townhomes, assignments, deposits, completion timelines, neighbourhoods and developer incentives across Metro Vancouver and the Fraser Valley.

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