Average closing costs in Calgary are roughly $9,000 after taxes or approximately 1.5-3% of the final home sale price.
- Average home sale price. $400,000-$425,000
- Average total closing cost. $9,000*
- Expected closing cost range. $6,000-$12,750*
- Percentage of closing cost to home sale price. 1.5-3%
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.
Buyers in Calgary are fortunate to pay a minimal amount of tax (GST only) because of a lack of property or land transfer tax on the sale of properties.
*Goods and Services Tax (GST)
While homebuyers in Calgary do not need to pay a land or property transfer tax, you will need to pay a GST but not in all circumstances. In Calgary, the GST is a 5% federal tax that is only payable on the sale of brand new properties. This can be on a presale high-rise condominium or on a newly built home. The key here is that this tax is only applicable on a brand-new residence.
Yes, there is a rebate that is available to homebuyers in Calgary. 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 example, if you purchase a new home for $350,000, you will be charged $17,500 in GST. You will then be eligible for a GST rebate of $6,300 (36% of $17,500).
This rebate is reduced on properties ranging from $350,000-$450,000 and anything above $450,000 is not eligible for any GST rebate.
The closing costs for buying a home in Calgary are among the lowest of major cities in Canada because of the absence of any land or property transfer taxes. The absence of this tax allows the buyer to save their dollars and helps to keep closing costs down.
Closing costs are inevitable when you’re buying or selling a property. The exact amount will vary depending on what the final sale price is on your property in Calgary. It is safe to budget at least 1.5-3% of the final home sale price for closing costs. In cases where you buy a brand-new property, you will have to pay GST and this can raise your closing costs to as high as 7-9% (not including the rebate).
Want to learn more about mortgages? Head to our guide here.