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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.
*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.
Below is a breakdown of closing costs you may encounter. Remember to factor in moving costs as well.
|Type of cost||Estimated amount||Mandatory expense?||Description|
|Adjustment costs||Varies, but set aside around $500||Mandatory if applicable|
|Legal fees||$1,000-$1,500 (varies depending on the complexity of the purchase)||Mandatory|
|Disbursements||Starting at $100||Mandatory|
|Home inspection||$350-$750||Not mandatory (but strongly recommended)|
|Home insurance||$800-$1,200 (annual)||Likely mandatory|
|Mortgage default insurance||Varies||Mandatory if down payment is less than 20%|
|Real Property Report (RPR)||Potentially $0||Likely mandatory for the seller to provide|
|Title insurance||Around $300||Not mandatory|
|Estoppel certificate||Around $100||Likely mandatory if you’re buying a previously owned condo|
|Mortgage prepayment penalty||Varies based on the terms of your mortgage||Depends|
|Moving costs||Varies||Not mandatory|
|Switching/setting up utilities||Varies||Depends|
|Goods and services tax (GST)||5% of the purchase price||Mandatory if you’re buying a newly built home|
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.
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.
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.
When you buy a home, it is standard practice for the seller of the home to pay your real estate agent’s commission.
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.
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.
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