Amitoz Brar Realtor® · Abbotsford & Chilliwack

When you buy

Property transfer tax

British Columbia charges property transfer tax when a property changes hands. The buyer pays it, in cash, on completion day. It cannot be added to your mortgage, so budget for it separately from your down payment. The tax is charged in tiers on the fair market value of the interest you are buying:

The top tier is the regular 3% plus an additional 2% on the residential portion above $3,000,000. As a quick example, on an $800,000 home with no exemption the tax is $2,000 on the first tier plus $12,000 on the second, for a total of $14,000.

Buying as a foreign entity: foreign nationals, foreign corporations and taxable trustees pay an additional property transfer tax of 20% on their share of a residential property in specified areas, and the Fraser Valley Regional District is one of them. Canada’s federal prohibition on purchases by non-Canadians also runs through January 1, 2027. If either rule could apply to you, get advice before writing an offer.

Every year you own

Annual property tax

Property tax is separate from transfer tax. It is charged every year by your city or district and funds local services such as roads, fire protection, recreation and libraries. BC Assessment sets your home’s assessed value as of July 1 each year, your municipality sets the tax rates, and your tax notice arrives in late spring with payment typically due in early July. When a home changes hands, buyers and sellers settle their shares of the year’s tax through adjustments at completion.

The home owner grant

Most Fraser Valley owners who live in their home can reduce their tax with the provincial home owner grant. For 2026 the basic grant is up to $570 in the Fraser Valley Regional District, and the additional grant for seniors, veterans and people with disabilities brings the total to up to $845. The full grant applies to homes assessed at $2,075,000 or less for 2026; above that value the grant shrinks by $5 for every $1,000 of assessed value. The grant is not automatic. You apply to the Province every year, ideally after your tax notice arrives and before the due date, because a late claim can leave you paying penalties on the grant portion.

Province of BC, homeowner grant amounts and threshold for 2026

Two more annual taxes to know: BC’s speculation and vacancy tax applies in designated areas that include the Fraser Valley. Most people who live in their own home are exempt, but owners in those areas must still file a declaration every year. The federal underused housing tax can also apply to vacant or underused homes owned by non-residents and some corporations. If a property will sit empty or is held through a company, ask about both before you buy.

When you buy

Other closing costs for buyers

Transfer tax is usually the largest closing cost, but it is not the only one. A common planning rule is to set aside roughly 1.5% to 4% of the purchase price for closing costs, on top of your down payment. The dollar ranges below are typical Fraser Valley planning figures for 2026, not quotes; your lawyer or notary confirms your exact costs before completion.

Mortgage insurance premiums

CMHC premium rates for owner-occupied homes, charged on the total loan amount:

CMHC, mortgage loan insurance cost. With 20% or more down, no premium is charged. Other insurers use similar schedules.

When you sell

Costs of selling

Sellers do not pay property transfer tax; the buyer does. Your largest cost is usually the commission, and GST is charged on the commission itself.

Selling soon after buying: BC’s home flipping tax can take up to 20% of the profit on a home sold within about a year of purchase, sliding down to zero by the second year, with exemptions for major life events such as death, disability, separation and job relocation. A federal rule can also treat a home sold within 12 months as business income rather than a capital gain. If you bought recently and need to sell, get tax advice first.