Closing costs in Alberta: no land transfer tax, but not zero

Buyers who move here from Ontario or British Columbia are braced for a land transfer tax. Alberta does not have one. What Alberta has instead is a set of smaller costs that still add up to real money on closing day, and you pay them on top of your down payment.

Land title registration fees

When the property transfers to you, Alberta Land Titles charges a registration fee based on the value of the property. When your mortgage is registered against it, a second fee is charged based on the mortgage amount. Both are a base charge plus a small amount per $5,000 of value. On a $550,000 home with a $495,000 mortgage, the two together come to a few hundred dollars, not the several thousand a transfer tax would cost. Our closing costs calculator shows the exact figure.

Legal fees

A lawyer handles the transfer, the mortgage registration and the money on closing day. Fees and disbursements for a straightforward purchase usually land between $1,200 and $2,000 in Calgary. Ask for a quote that includes disbursements.

Title insurance

Most lenders require it. A one-time premium, typically a few hundred dollars, that protects the lender and, if you choose owner coverage, you, against title defects and fraud.

Appraisal

Some lenders order an appraisal to confirm the value, especially on refinances and unusual properties. Budget $300 to $500. Some lenders cover it.

Home inspection

Not required by anyone, and worth every dollar on a resale home. $400 to $600 for a typical house.

Adjustments

If the seller has already paid property tax or condo fees for the period after your closing date, you reimburse them for your share on closing day. A tax bill paid in June for the whole year, on a September closing, means you owe the seller roughly a third of it.

Interest adjustment

If you close mid-month, the lender collects the interest from your closing date to the first regular payment date up front.

Home insurance

The lender needs proof that the home is insured from the closing date. The first year’s premium is often paid at or before closing.

GST on new homes

Resale homes carry no GST. New builds do: 5% of the price, though rebates exist and change over time. Confirm with the builder how the price is stated and whether the rebate is assigned to them.

How much to have ready

For a resale home in Alberta, a working rule is about 1.5% of the price, plus the down payment. New builds are higher because of GST. Run your own numbers in the calculator, and if the total surprises you, talk to us before you make an offer, not after.