Most people planning a move up focus on two numbers: what their current home will sell for, and what the next one will cost. The gap between those two numbers is what they plan around.

But there is a third number that quietly shapes the whole move: closing costs. And when you sell and buy at the same time, you pay them twice.

Let's walk through it with an example. Meet Sarah. She owns a home in Port Moody worth $500,000 with $250,000 left on her mortgage. She's selling it and buying an $800,000 home.

Part 1: What Sarah Pays to Sell

When Sarah's home sells for $500,000, she doesn't receive $500,000. Before anything reaches her account, a few costs come off the top.

Real estate commission: $17,850

This is the largest selling cost. This example uses a common structure in Greater Vancouver: 7% on the first $100,000 and 2.5% on the balance, shared between the listing and buyer's brokerages. On $500,000, that's $17,000, plus 5% GST, for $17,850.

Lawyer or notary: about $1,500

Sarah's lawyer or notary prepares the transfer documents, pays out her mortgage from the sale proceeds and makes sure the title is clear for the buyer.

Mortgage discharge

Depending on her lender, there may be a fee to discharge the mortgage and register the discharge. It's worth asking about when you call your lender.

The one to check early: a prepayment penalty

If Sarah breaks a fixed-rate mortgage before its term is up, her lender may charge a penalty. Depending on the mortgage, that can be anywhere from a few thousand dollars to much more. Many mortgages can be ported to the new home, which may avoid the penalty entirely. Sarah's mortgage is portable, so we've left it out of her numbers, but this is the first call to make to your lender before you list.

Sarah's selling costs: about $19,350

That's roughly 3.9% of her sale price. After paying off her $250,000 mortgage, Sarah walks away with about $230,650.

Part 2: What Sarah Pays to Buy

Now for the $800,000 purchase. The buying side has one large cost and a handful of smaller ones.

Property Transfer Tax: $14,000

This is the big one, and it's due in cash on completion day. It can't be added to the mortgage. BC calculates it in tiers:

• 1% on the first $200,000: $2,000
• 2% on the portion from $200,000 to $2,000,000: $12,000 on Sarah's remaining $600,000
• Higher rates apply above $2,000,000, which doesn't affect Sarah

First-time buyers can be exempt on homes up to $835,000, with a partial exemption up to $860,000. Because Sarah already owns a home, she doesn't qualify. This catches a lot of move-up buyers who remember paying little or nothing the first time.

Lawyer or notary: about $2,000

The buying side usually costs more than the selling side because there's more work: registering the new title and the new mortgage, handling the funds and preparing the statement of adjustments. This estimate includes title insurance, which most lawyers and notaries arrange as part of the purchase.

Home inspection: $400 to $600

Paid up front, before subject removal. Sarah's was $500, a small cost against the size of the decision.

Smaller items to expect

• Appraisal: often covered by the lender, but some charge a few hundred dollars.
• Property tax adjustments: if the seller has prepaid property taxes or strata fees past completion day, Sarah reimburses them for her share. This isn't an extra cost so much as prepaying her own bills, but it does need to be in her cash on closing day.
• Home insurance: the lender will require proof of coverage before completion.

Sarah's buying costs: about $16,500

That's roughly 2% of her purchase price, and most of it is the Property Transfer Tax.

Part 3: Putting Both Sides Together

Here's the part most people miss. On paper, Sarah has $250,000 of equity. If she could move for free, all of it would go toward her down payment.

But closing costs come out of that same pool of money. After $19,350 on the sale and $16,500 on the purchase, Sarah has about $214,150 left to put down, not $250,000. That's a 26.8% down payment instead of 31%, and a mortgage of about $586,000 instead of $550,000.

Costs that only show up when you do both at once

• Bridge financing. If Sarah's purchase completes before her sale, she needs her equity before she has it. A bridge loan covers the gap for a few days or weeks, with a setup fee and interest for each day it's open.
• Carrying two homes. If the dates go the other way, she may need short-term rent or storage. Lining up completion dates is one of the most valuable things to plan early.
• Moving. Not a closing cost, but real cash in the same week. Get quotes early, especially for month-end dates.

What Sarah Did Right

• She called her lender first. Before listing, she confirmed her mortgage was portable and there would be no penalty.
• She budgeted from her real equity. She planned her purchase around $214,150, not $250,000, so there were no surprises at the lawyer's office.
• She used one realtor and one lawyer for both sides. With the same people handling her sale and her purchase, funds moved smoothly between the two and the dates were easy to coordinate. It made the whole move easier.
• She set the cash aside for Property Transfer Tax. It's due on completion and can't be financed.
• She lined up completion dates. Completing the sale a day or two before the purchase meant no bridge loan was needed.

Closing costs aren't hidden, but they are easy to underestimate. If you're thinking about moving up, it's worth running your own numbers before you list, so your next home is planned around the money you'll actually have.

Figures are illustrative estimates for a typical Metro Vancouver transaction in 2026. Commission, legal fees and lender charges vary. Property Transfer Tax rates are set by the Province of British Columbia. This article is general information, not legal, tax or financial advice. Confirm your own costs with your REALTOR®, lawyer or notary, and lender.