You've done the math a hundred times. You've been saving for years. Rent keeps going up, groceries cost more every month, and you finally have your down payment.

Then someone mentions closing costs, and your stomach drops.

How much more do you actually need?

This is one of the most common questions I get. And the honest answer is that your down payment is only part of the picture. Here's what it really takes, so there are no surprises when you're ready to buy.

1. Your down payment

In Canada, the minimum down payment depends on the price of the home:

  1. Up to $500,000: 5%
  2. $500,000 to $1.5 million: 5% on the first $500,000, plus 10% on the rest
  3. $1.5 million and up: 20%

So on a $650,000 home, the minimum is $40,000. That's $25,000 on the first $500,000, plus $15,000 on the remaining $150,000.

Good to know: If you're putting down less than 20%, your mortgage needs default insurance. The premium (4% of your mortgage at 5% down) is usually added to your mortgage, so it's not cash you need upfront. But it does make your mortgage bigger.

2. Property transfer tax

This is the one that catches people off guard. BC charges property transfer tax when you buy a home:

  1. 1% on the first $200,000
  2. 2% on the portion from $200,000 to $2 million
  3. 3% on anything above $2 million

On a $650,000 home, that's $11,000. Due on closing day. In cash.

The good news for first-time buyers: If you've never owned a home anywhere in the world, you may qualify for the BC first-time home buyers' exemption. For homes up to $835,000, you don't pay tax on the first $500,000. On that same $650,000 home, your tax drops from $11,000 to $3,000.

There are rules (you need to be a Canadian citizen or permanent resident, have lived in BC for at least a year, and live in the home), so check with your lawyer or notary.

3. Legal or notary fees

Someone has to handle the paperwork, transfer the title and make sure your money goes where it's supposed to. Expect to pay roughly $2,000 to $2,200, depending on who you use and how complicated your purchase is.

4. Adjustments

If the seller already paid this year's property taxes or this month's strata fees, you'll pay them back for the days you own the home. This can be a few hundred dollars or more than $1,000, depending on when you close.

5. Home inspection and appraisal

A home inspection usually runs about $500 to $800, and it's worth every penny. Some lenders also charge for an appraisal, though many cover it.

6. The costs nobody puts on the list

Moving. Utility hookups. Window coverings. That first trip to the hardware store. These aren't closing costs, but they come out of the same bank account in the same few weeks. Give yourself a cushion.

What lenders want to see

Here's the part most people don't know. What you have to prove to the lender depends on how much you're putting down.

  1. Less than 20% down (an insured, or high-ratio, mortgage): You need to show your down payment plus 1.5% of the purchase price set aside for closing costs.
  2. 20% or more down (a conventional mortgage): You only need to show your down payment.

So on a $650,000 home with the minimum down, that's $40,000 for the down payment plus $9,750 for closing costs. About $50,000 total in the bank before you buy.

Putting it all together

Here's what it looks like on a $650,000 home in BC with the minimum down payment.

If you're a first-time buyer:

  1. Down payment: $40,000
  2. Property transfer tax (with the exemption): $3,000
  3. Legal fees and home inspection: about $2,500 to $3,000
  4. Total: about $45,500 to $46,000

If you've owned a home before:

  1. Down payment: $40,000
  2. Property transfer tax: $11,000
  3. Legal fees and home inspection: about $2,500 to $3,000
  4. Total: about $53,500 to $54,000

That $8,000 difference is the first-time buyer exemption. If you've owned a home before, anywhere in the world, you pay the full property transfer tax.

Plus adjustments, moving and setup costs. And remember, the lender will want to see about $50,000 in the bank to approve you if pytting less than 20% down.

Where the money can come from

You don't have to do this with savings alone:

  1. First Home Savings Account (FHSA): Up to $40,000 tax-free toward your first home.
  2. RRSP Home Buyers' Plan: Borrow up to $60,000 from your RRSP (up to $120,000 for a couple) and pay it back over time.
  3. A gift from family: Lenders accept gifted down payments from immediate family with a signed gift letter.

The bottom line

Buying a home costs more than the down payment, but it doesn't have to blindside you. Know your numbers now, and closing day feels exciting instead of terrifying.

Planning to buy in Maple Ridge, Pitt Meadows or Langley? I'll put together a budget for you with the exact breakdown of what you'll need, from your down payment to closing day, so you don't have to guess. Reach out and let's map it out.

Numbers current as of October 2026. This article is general information, not personalized mortgage advice. Every situation is different, so talk to a mortgage professional about yours.