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

By Uzair Muhammad · Published 2026-02-09 · Updated 2026-08-29

Closing costs on a BC presale can range from nearly $0 for first-time buyers to 5%+ for investors. Here's an exact breakdown of GST, PTT exemptions, and what to budget for completion day.

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

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 your lawyer if the developer is crediting the rebate upfront.

Primary Residence Requirement

To keep your PTT exemptions, you must move into the home within 92 days of completion and reside there for the remainder of the first year.

The $1.1M Ceiling

Once a new home exceeds $1.1 million, the PTT exemptions begin to phase out quickly. For luxury presales in Vancouver, expect to pay the full tax.

5. Summary Checklist for Closing

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Mortgage Finalization

Ensure your lender knows the net price after rebates.

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Home Insurance

Your lawyer will require proof of "walls-in" insurance before closing.

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The "Buffer"

Always have an extra $5,000 in cash ready for unexpected adjustments or move-in fees.

Conclusion

Closing costs on a presale in BC can range from nearly nothing for a first-time buyer to a significant 5% for an investor. By knowing the thresholds for the Newly Built Home Exemption and the GST New Housing Rebate, you can avoid "sticker shock" on completion day.

References

1. Canada Revenue Agency – GST New Housing Rebate for First-Time Buyers

2. Province of British Columbia – First Time Home Buyers' Program

3. Province of British Columbia – Newly Built Home Exemption

Official sources

This is general information, not tax or legal advice. Rules change and eligibility depends on your situation — confirm with a tax professional or a BC real estate lawyer before you sign.