Guide · Residential
What it costs to sell a home in BC
Before you list, it helps to know what you’ll actually walk away with. Here are the costs that come out of the sale price, and the ones people forget. Expect commission, legal or notary fees, any mortgage penalty, and moving costs.
General information, not tax or legal advice. The numbers here are illustrative. Talk to your lawyer and accountant before you act on them.
The short version
Most sellers pay the commission (plus GST on it), legal or notary fees, the cost of paying off the mortgage, and moving. If the home was your principal residence the whole time you owned it, the gain is usually tax-free. If not, talk to your accountant before you list.
Commission
Commission is negotiable and set out in the listing agreement. It usually covers both the listing brokerage and the brokerage bringing the buyer. GST applies to the commission.
Legal or notary fees
Your lawyer or notary handles the transfer, pays off the mortgage and sends you the balance. Ask for a quote that includes disbursements.
Paying off your mortgage
- Prepayment penalty if you break a fixed-rate mortgage early. Ask your lender for the exact figure before you list.
- Discharge fee to remove the mortgage from title.
- Porting your mortgage to the next home can avoid the penalty in some cases.
Getting the home ready
Cleaning, small repairs, painting, staging and photos. Spend where buyers will notice and skip the big renovations.
Taxes
- Principal residence. A home that was your principal residence for every year you owned it is usually exempt from capital gains tax. You still report the sale on your tax return.
- Rental or second property. Capital gains tax usually applies.
- Property tax is adjusted between you and the buyer on the completion date.
Example
On a $1,200,000 sale with a $400,000 mortgage, you would subtract commission and GST on it, legal fees, any mortgage penalty and moving costs from $800,000 of equity. Get your real numbers from your lender and lawyer, and I can put them together into one net figure for you.
Questions people ask
Is real estate commission negotiable in BC?
Yes. It is set out in your listing agreement and agreed between you and the brokerage before you list.
Do I pay capital gains tax when I sell my home?
Usually not if it was your principal residence for every year you owned it, but you must report the sale. A rental or second home is different. Check with your accountant.
Who pays Property Transfer Tax when I sell?
The buyer. As the seller, you don’t pay Property Transfer Tax on your sale.
Go deeper
If you’re looking for more details
A seller’s cost checklist
- Commission and GST on it
- Legal or notary fees
- Mortgage penalty and discharge fee
- Cleaning, repairs and staging
- Moving and storage
- Bridge financing, if you buy before you sell
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