Presale Closing Costs in BC — Three Worked Examples
Updated August 2026
Closing costs on a BC presale are dominated by two taxes — 5% GST and Property Transfer Tax — and both have exemptions that can reduce them to zero for a qualifying first-time buyer of new construction. At a $500,000 purchase, a qualifying first-time buyer's estimated closing cost outside the down payment is about $3,500; at $1M it is about $5,500 because the PTT exemption has fully phased out. This is general information, not tax or legal advice — confirm details with your accountant or lawyer.
PresaleProperties.com is the buyer-side representation practice of Uzair Muhammad (REALTOR, Real Broker BC), serving presale and new construction buyers across Metro Vancouver and the Fraser Valley from 3211 152 St, Building C, Suite 402, Surrey BC V3Z 1H8 — (672) 258-1100.
GST at 5% and the first-time buyer rebate
Every new home in BC attracts 5% federal GST on the purchase price. Since 2026, a qualifying first-time buyer pays no federal GST on a new home priced up to $1M; the rebate then phases down linearly to zero at $1.5M. Your lawyer usually assigns the rebate to the developer at completion so it is credited on the Statement of Adjustments rather than refunded to you later.
Property Transfer Tax and the Newly Built Home Exemption
BC's PTT is 1% on the first $200,000 and 2% on the balance to $2M. New construction qualifies for the Newly Built Home Exemption: full exemption up to $1.1M, phasing out to zero at $1.15M. You must be a Canadian citizen or permanent resident and occupy the home as your principal residence for the first year.
Legal fees and disbursements
Budget $1,200 to $1,800 including disbursements for a straightforward new-construction completion — title search, land title registration, mortgage registration, courier and conveyancing. Presale completions involve more documentation than a resale, so quote the file specifically.
Completion adjustments
At completion you reimburse the developer for prepaid property taxes, strata fees for the balance of the month, and utility hook-ups. New-construction contracts often add development-cost-charge or GST-rate change clauses. Budget roughly 0.3% to 0.5% of the purchase price and read the adjustments clause before your rescission period ends.
What is not in this table
Your down payment and mortgage, home insurance for the first year, moving costs, window coverings and appliances if not included, and any assignment-related tax if you are buying an assigned contract. Interim occupancy fees are an Ontario concept and do not apply in BC.
Why the $1M example is so much higher
At $1,000,000 the GST rebate still applies in full for a qualifying first-time buyer, but the Newly Built Home Exemption is long gone — it disappears above $1.15M — so the full $18,000 of Property Transfer Tax is payable. That single threshold is the biggest closing-cost cliff in BC new construction.
Closing costs at $500K, $750K and $1M
| Line item | $500,000 purchase | $750,000 purchase | $1,000,000 purchase |
|---|---|---|---|
| GST at 5% | $25,000 | $37,500 | $50,000 |
| Less first-time buyer GST rebate | −$25,000 | −$37,500 | −$50,000 |
| Net GST payable | $0 | $0 | $0 |
| Property Transfer Tax | $8,000 | $13,000 | $18,000 |
| Less Newly Built Home Exemption | −$8,000 | −$13,000 | −$18,000 |
| Net PTT payable | $0 | $0 | $0 |
| Legal fees & disbursements (est.) | $1,200–$1,800 | $1,200–$1,800 | $1,200–$1,800 |
| Completion adjustments (est.) | $2,000 | $3,000 | $4,000 |
| Estimated cash at completion (excl. down payment) | $3,500 | $4,500 | $5,500 |
Figures are illustrative estimates for a qualifying first-time buyer of new construction, calculated August 2026 using current federal and BC thresholds. This is general information, not tax or legal advice — confirm details with your accountant or lawyer.
Sources & references
- CRA — GST/HST new housing rebate
- Government of BC — Property Transfer Tax
- Government of BC — Newly Built Home Exemption
- BC Financial Services Authority (BCFSA)
- Real Estate Development Marketing Act (REDMA)
This is general information, not tax or legal advice — confirm details with your accountant or lawyer.
Frequently Asked Questions
How much are closing costs on a presale in BC?
For a qualifying first-time buyer of new construction, estimated closing costs outside the down payment are roughly $3,500 at a $500,000 purchase, $4,500 at $750,000 and $5,500 at $1M. Non-first-time buyers pay full GST, which changes the numbers substantially.
Do I pay GST on a BC presale?
Yes, 5% on the purchase price. A qualifying first-time buyer pays no federal GST up to $1M, with the rebate phasing to zero at $1.5M.
What is the Newly Built Home Exemption?
A BC Property Transfer Tax exemption for new construction: full exemption up to $1.1M, phasing to zero at $1.15M, for citizens or permanent residents who occupy the home as a principal residence for the first year.
How much are legal fees on a presale completion?
Typically $1,200 to $1,800 including disbursements. Presale completions carry more documentation than resale, so ask for a file-specific quote.
What are completion adjustments?
Reimbursements to the developer for prepaid property taxes, strata fees and utility connections, plus any contractual adjustments. Budget roughly 0.3% to 0.5% of the purchase price.
Is this tax advice?
This is general information, not tax or legal advice — confirm details with your accountant or lawyer.
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