Alberta Mortgage Closing Costs — Complete Guide

What Are Closing Costs?

Closing costs are the expenses you pay in addition to your down payment when you complete the purchase of a home. In Alberta, most buyers are surprised by how many different fees are involved. Budgeting 1.5%–4% of the purchase price for closing costs is a reasonable rule of thumb, though the exact amount varies significantly depending on your situation.

Alberta vs. Other Provinces: The Land Transfer Tax Advantage

One of the significant advantages of buying in Alberta is the absence of a provincial land transfer tax. Ontario charges 1.5%–2.5% of the purchase price in land transfer tax (plus an additional Toronto land transfer tax if you're buying in the city). BC charges 1%–3%. These taxes can add $10,000–$25,000+ to a purchase in those provinces. Alberta charges only a land title transfer fee, which is much lower.

Alberta Land Title Transfer Fees

Alberta charges fees based on the property value for transferring title. As of 2025, the fees are:

For a $550,000 home: $350 + ($300,000 × $2.00 / $1,000) = $350 + $600 = $950. Compare this to Ontario where the equivalent land transfer tax would be approximately $7,475. A meaningful saving.

There is also a separate mortgage registration fee, typically $100–$200.

Legal Fees

You'll need a real estate lawyer to handle the title transfer, mortgage registration, and closing. In Alberta, legal fees for a standard residential purchase typically run $1,200–$2,500 plus disbursements (out-of-pocket costs the lawyer incurs on your behalf such as title searches, registration fees, and courier costs). Disbursements add another $300–$600.

Don't choose your lawyer solely on price. A good real estate lawyer reviews your purchase contract, ensures title is clear, and protects you from liens or other issues with the property.

Title Insurance

Title insurance protects you (and your lender) against title defects, survey issues, fraud, and other problems that may arise after closing. Most Alberta lenders require it. Cost: typically $250–$400 for a one-time premium on a property in the $500,000–$700,000 range.

Home Inspection

A home inspection is not legally required in Alberta but is strongly recommended — especially for resale homes. A qualified home inspector evaluates the structural integrity, roof, mechanical systems, electrical, plumbing, and more. Cost: typically $400–$700 depending on property size. Well worth the investment — a good inspector can identify issues that may be costly to repair or give you negotiating leverage on price.

Property Tax Adjustment

Alberta property taxes are paid annually. If the seller has prepaid property taxes for the year, you'll reimburse them for the portion covering the time after your closing date. If they haven't paid yet, they'll give you a credit. This amount varies but is typically $500–$3,000 depending on the property and timing of closing.

CMHC Insurance Premium (if applicable)

If your down payment is less than 20%, your CMHC mortgage default insurance premium is added to your mortgage — you don't pay it at closing. However, in some provinces GST applies to the premium and must be paid at closing. Alberta does not apply PST/GST to CMHC premiums, so this is typically not a cash cost at closing for Alberta buyers.

Other Potential Costs

• Mortgage appraisal fee: $300–$500 (sometimes waived by lender)
• Condo status certificate: $100–$200 (if buying a condo)
• Home warranty: New builds come with warranty coverage; resale homes may not
• Moving costs: $1,000–$5,000+ depending on distance and volume
• Immediate repairs: Budget 1–2% of purchase price for first-year maintenance even on well-maintained homes

Total Closing Cost Estimate: Alberta Example

On a $550,000 purchase, this represents about 1.0% of the purchase price — well below the 1.5–4% rule of thumb, reflecting Alberta's land transfer tax advantage. Your actual costs will vary.