Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

Closing costs in Alberta

See how much you might have to pay in closing costs when buying a home in this province.

Avatar
Avatar

By

James Wan

&

Stacie Hurst

Updated

Fact checked

On Average, closing costs in Alberta cost about $12,911. A good rule of thumb is to calculate 2-4% of the final home sale price.

Closing cost stats in Alberta

  • Average home sale price as of April 2021. $430,348 (ranges from around $245,843 for an apartment to $481,986 for a detached home)1
  • Average total closing cost. $12,911*
  • Expected closing cost range. $8,607 to $17,214*
  • Percentage of closing cost to home sale price. 2-4%

*Excludes the goods and services tax (GST).

Remember, these averages are based on sample data. Your closing costs may vary based on your lender, the size of your loan and whether you’re paying in cash.

What are the closing costs for a homebuyer in Alberta?

Below is a breakdown of closing costs you may encounter. Remember to factor in moving costs as well.

Type of costEstimated amountMandatory expense?Description
Adjustment costsVaries, but set aside around $500Mandatory if applicable
  • The buyer must reimburse the seller for any property taxes or utilities the seller paid after the buyer takes possession.
  • For example, if the seller pays property taxes for the next 12 months, and the buyer takes possession 3 months later, the buyer would then reimburse the seller for 9 months’ worth of property taxes.
Legal fees$1,000-$1,500 (varies depending on the complexity of the purchase)Mandatory
  • Lawyers handle administrative details and make sure the title is transferred properly.
  • Make sure you find out exactly what services your lawyer is performing and how the legal fees break down.
DisbursementsStarting at $100Mandatory
  • These are reimbursements paid to your lawyer for miscellaneous fees like mailing costs, bank charges, photocopies and land transfer fees to register the property in your name.
  • As of January 1, 2020, the land title transfer fee is a $50 base fee plus $2 for each $5,000 or (portion of $5,000) of the land value.
Home inspection$350-$750Not mandatory (but strongly recommended)
  • Have the property professionally inspected before you buy to ensure you’re aware of its true condition and can afford any necessary maintenance or repairs.
Home insurance$800-$1,200 (annual)Likely mandatory
  • This insurance covers any loss or damage to your home.
  • Mortgage lenders will require you to have it.
  • Your premium depends on several factors, such as the type of home, the materials it was made out of and the neighbourhood crime rate.
Mortgage default insuranceVariesMandatory if down payment is less than 20%
  • This covers the cost of the home should you default on payments.
  • Your premium is based on various factors such as the size of the down payment and the mortgage’s amortization period.
  • The premium can be paid upfront or throughout the amortization period.
Real Property Report (RPR)Potentially $0Likely mandatory for the seller to provide
  • This is an illustration of the property’s boundaries, buildings and structures.
  • In Alberta, the seller is usually required to provide this to the buyer.
Title insuranceAround $300Not mandatory
  • This covers the lender against defects in the title, which could include overlooked back taxes, conflicting wills and existing liens from other mortgages or home equity lines of credit.
  • This insurance is legally complex, so be sure to research and seek advice on exactly what it can cover.
Property appraisal$350-$500Depends
  • Your mortgage lender may require an appraisal to ensure the mortgage is reasonable given the property’s value.
Estoppel certificateAround $100Likely mandatory if you’re buying a previously owned condo
  • This is a signed statement from the condo corporation that details condo contributions or outstanding payments.They may charge a fee for providing this to you.
  • Sometimes, the seller of the condo will provide this to you as part of the selling process.
Mortgage prepayment penaltyVaries based on the terms of your mortgageDepends
  • If you have to break an existing mortgage, you may have to pay a penalty fee that could be thousands of dollars.
Moving costsVariesNot mandatory
  • This includes the cost of any professional moving services you hire, truck rental fees, moving equipment and any related incidental costs.
Switching/setting up utilitiesVariesDepends
  • You may have to pay fees for switching and setting up your utilities. This could include separate charges for gas, electricity, water, Internet, cable, phone and security systems.
Goods and services tax (GST)5% of the purchase priceMandatory if you’re buying a newly built home

Closing costs and mortgage fees

Is there a land transfer tax or property transfer tax when buying a house in Alberta?

There is no land transfer tax or property transfer tax for homebuyers in Alberta. However, there are still fees you will need to pay the government, such as the land title transfer fee (mentioned above under “Disbursements”). Your lawyer can help ensure all the proper fees are paid to the government.

Do you have to pay GST when buying a home in Alberta?

In Alberta, GST is a 5% federal tax that is only payable when you buy a new or substantially renovated property. This can be on a presale high-rise condominium or a newly built home. Sometimes, GST is already included in the sale price of the home, so be sure to check with the builder.

  • A home is considered substantially renovated if at least 90% of the interior was replaced or removed.

Is there a GST rebate?

Yes. If you purchase a home with a sale price of $350,000 or less, you are eligible for a 36% rebate on the 5% GST you pay, for a maximum rebate of $6,300. This rebate is reduced on properties ranging from $350,000-$450,000 and anything above $450,000 is not eligible for any GST rebate.

Compare mortgage lenders in Alberta

1 - 4 of 4
Name Product Interest Rate (APR) Loan Term Min. credit score Provincial availability
nesto Mortgages
CASHBACK
nesto Mortgages
4.49%
5 Year Fixed Rate
680
All of Canada
Get 1% cashback on your mortgage value (up to a total cashback of $9,250).
Go to site
More Info
Tangerine Mortgages
Tangerine Mortgages
5.74%
5 Year Fixed Rate
620
All of Canada
Secure a mortgage rate for up to 120 days. Make lump sum prepayments up to 25% of your original mortgage amount each year.
Go to site
More Info
BMO Mortgages
BMO Mortgages
6.49%
5 Year Fixed Rate
Varies
All of Canada
Switch your mortgage to BMO and get up to $4,200 CashBack. Valid until June 30, 2023.
Go to site
More Info
Homewise Mortgages
Homewise Mortgages
Varies
Varies
600
Not available in Quebec
Homewise's personal advisors can get you mortgage rates from over 30 banks and lenders.
Go to site
More Info
loading

What about realtor fees?

When you buy a home, it is standard practice for the seller of the home to pay your real estate agent’s commission.

How do closing costs in Alberta compare with the rest of Canada?

The closing costs for buying a home in Alberta are among the lowest in Canada because you don’t have to pay land or property transfer tax. The absence of this tax allows the buyer to save precious tax dollars and keeps the overall closing costs that much lower.

Bottom line

Closing costs are inevitable when you’re buying a home in Alberta. The exact amount will depend on your personal situation. Try to budget at least 2-4% of the price for your closing costs. If you buy a newly built home, you should also keep in mind the GST, which is 5% of the sale price. Talk to your lawyer or real estate agent to learn more about your closing costs.

Want to learn more about mortgages? Head to our guide here.

  1. Alberta Real Estate Association: Province of Alberta Monthly Statistics April 2021

More guides on Finder

Go to site