What comes off your sale price
- Mortgage payout. Your lender sends your lawyer a payout statement with the exact balance on completion day, plus daily interest.
- Prepayment penalty. If you break a fixed-rate mortgage early, the penalty can be several months of interest or more. Ask your lender for a quote, or ask whether you can port the mortgage to your next home.
- Real estate fees. Set out in your listing agreement and based on the marketing plan you choose. GST applies to the fee.
- Legal or notary fees. For handling the sale and paying out your mortgage. Many sellers budget around $1,000 to $1,500.
- Adjustments. Property taxes, strata fees and utilities are split between you and the buyer as of the completion date, so this can be a cost or a credit.
What doesn't come off
Sellers don't pay property transfer tax; the buyer does. If the home has been your principal residence the whole time you owned it, there's usually no capital gains tax on the sale. If it was a rental or a second home, or you're selling within two years of buying, other rules such as capital gains tax, the federal anti-flipping rule or BC's home flipping tax may apply, so talk to your accountant. See house flipping taxes in BC.
Selling and buying at the same time?
Your proceeds become your next down payment. Read moving up or downsizing, then try the mortgage calculator and the property transfer tax calculator for the purchase side.
This calculator is a general estimate, not legal, tax or financial advice. Results are deemed accurate but not guaranteed; verify with your lender, lawyer or notary, and accountant before you rely on them.