Title Insurance, Property Transfer Tax & More: What First-Time Buyers Should Know

Buying your first home in Vancouver is exciting — but let’s be honest, it can also feel like learning a new language. Between closing costs, legal fees, insurance, and taxes, there are quite a few “extras” that pop up during the buying process that many first-time buyers don’t expect.One of the most common questions I get is:
“What do I actually need to budget for, beyond the down payment?”Let’s walk through the key costs and terms you should know — in plain language — so you feel more prepared and a lot less overwhelmed.

1. Property Transfer Tax (PTT)

This one catches a lot of first-time buyers by surprise.In B.C., the Property Transfer Tax is paid when you officially transfer the property into your name. It’s calculated as:

• 1% on the first $200,000
• 2% on the portion from $200,001 to $2,000,000
• 3% on the portion from $2,000,001 to $3,000,000
• 5% on anything above $3,000,000

👉 First-Time Buyer Exemption:

The good news? If you're buying your first home and the property is under $500,000, you may qualify for a full exemption from the tax.
Partial exemptions apply for homes up to $525,000.To qualify, you must:

• Be a Canadian citizen or permanent resident
• Have lived in B.C. for 12 consecutive months before the purchase (or filed 2 years of B.C. income tax)
• Never have owned property anywhere in the world

Always check with your lawyer or notary to confirm your eligibility — the rules can change.

2. Title Insurance

Title insurance protects you (and your lender) against issues that may not show up in a standard title search — like fraud, identity theft, zoning issues, or mistakes in public records.It’s usually a one-time cost (roughly $250–400) paid at closing and is often required by your mortgage lender. Even if it’s not, many buyers opt to include it for peace of mind.

3. Legal Fees & Disbursements

You’ll need a real estate lawyer or notary to complete your purchase — they’ll handle the legal paperwork, register the property in your name, and transfer funds.Expect to pay around $1,200 to $2,000, depending on the complexity of the deal and the service provider. This often includes:

• Legal fees
• Title search and registration
• Courier, filing, and admin charges (a.k.a. “disbursements”)

4. Mortgage Insurance (if applicable)

If your down payment is less than 20%, you’ll need mortgage default insurance through CMHC, Sagen, or Canada Guaranty.This protects the lender — not you — in case of default, and the premium is added to your mortgage. It’s based on a sliding scale:

• 4% for 5% down
• 3.1% for 10% down
• 2.8% for 15% down

It’s not paid upfront, but it does affect your monthly payments, so it’s good to factor it in when budgeting.

5. Home Inspection (Optional, but Smart)

A professional inspection usually costs $400–$700 depending on the property’s size and age. It’s not mandatory, but it’s highly recommended — especially for detached homes or older buildings.A good inspection can reveal major red flags or help you plan for future repairs.

6. Other Upfront Costs to Plan For

• Appraisal fee (if required by your lender): ~$300–500
• Moving expenses
• Home insurance (must be in place by closing)
• Strata move-in fees (in condos/townhomes): ~$100–300
• Utility deposits or account set-up fees

There’s no sugar-coating it — buying your first home comes with a few hidden (or at least unexpected) costs. But knowing what to expect helps you plan wisely, avoid surprises, and move through the process with confidence.And if you're still trying to figure it all out, that’s completely normal. These are the kinds of details I walk through with my clients every day — because buying a home should feel exciting, not intimidating.

Want a simple checklist of all the upfront costs involved in buying your first home in B.C.? Let me know — I’d be happy to send it your way or walk through it together.