BC Home Seller MathWhat a BC home is worth, and what you keep when you sell it.

← All guides

Selling a home in BC: what you actually keep from a $1.2 million sale

Updated November 13, 2026 · 417 words

When you sell a home in British Columbia, the price on the contract isn't what lands in your bank account. Commission, legal fees, the mortgage payout, and a possible prepayment penalty come off first. On a $1.2 million sale with a $550,000 mortgage, this seller walks away with about $594,000.

This guide breaks down every deduction, shows how commission scales with price, and explains the mortgage penalty that catches many sellers off guard.

House Interior
Sellers in BC don't pay property transfer tax, but they do pay most of the other closing costs.

Where the money goes

Waterfall chart of a $1,200,000 sale: $36,225 commission with GST, $1,200 legal fees, $550,000 mortgage payout, $11,000 prepayment penalty, $3,000 moving and $5,000 of repairs and staging, leaving $593,575 to the seller
After the mortgage, commission is the biggest single deduction.
Item Amount
Sale price $1,200,000
Commission (7% / 2.5%) plus GST -$36,225
Legal or notary fees -$1,200
Mortgage payout -$550,000
Prepayment penalty -$11,000
Moving -$3,000
Repairs and staging -$5,000
Cash to the seller $593,575

Property taxes and strata fees are adjusted to the completion date on the statement of adjustments, so a seller who prepaid the year's taxes gets part of them back.

Commission

Commission in BC is negotiable. A structure often quoted is 7% on the first $100,000 and 2.5% on the rest, and GST of 5% applies on top.

Bar chart of commission with GST at seven prices: $20,475 at $600,000, $25,725 at $800,000, $30,975 at $1 million, $36,225 at $1.2 million, $44,100 at $1.5 million, $57,225 at $2 million and $83,475 at $3 million
Above $1 million, the effective rate settles near 2.8% to 3% including GST.

The prepayment penalty

If you break a mortgage before its term ends and don't port it to your next home, the lender charges a penalty. On a variable-rate mortgage it's usually three months' interest. On a fixed-rate mortgage it's usually the greater of three months' interest and the interest rate differential (IRD).

Line chart of the penalty for breaking a $550,000 fixed mortgage at 5.29% with two years left: $7,274 when rates are unchanged, rising to $11,000 when the lender's rate is one point lower and $22,000 when it is two points lower, compared with $6,188 for a variable mortgage
The IRD grows quickly when rates have fallen since you signed.

Before you list, ask your lender for a payout statement and ask whether the mortgage can be ported to your next property or assumed by the buyer.

House Interior
Staging and small repairs are usually the cheapest way to raise the sale price.

Pricing the sale

The deductions above are fixed once you sign. The sale price is the one number you still control. Price from recent sold prices of comparable homes, not from the assessment or neighbours' asking prices. EstateBlock's guide to selling a house in Vancouver covers timing, pricing, and preparing a home for sale.

Quick answers

Do I pay capital gains tax when I sell my home? Not if the home was your principal residence for every year you owned it and you report the sale on your tax return.

When do I get the money? On completion day, after your lawyer or notary pays out the mortgage and the commission.

Sources and further reading

Hypothetical figures. General information only, not legal, tax, or mortgage advice.

Photos (CC0): House Interior by Nathan Fertig; House Interior by Justin Schüler.