What Are Closing Costs?
Closing costs are the fees and expenses you pay on or before possession day, separate from your down payment. They are the part of buying a home that many first-time buyers do not think about until their lawyer sends them the final statement and the number is larger than expected.
In Alberta, closing costs typically range from 1.5% to 4% of the purchase price. On a $568,000 home, that is $8,500 to $22,700 that needs to be available in cash beyond your down payment. Budget conservatively and keep a buffer. Running short on possession day creates real problems.
Alberta's Biggest Advantage: No Land Transfer Tax
Before going through the list of costs, here is the most important thing to understand about buying in Alberta: this province does not have a land transfer tax. Every other major province does.
In Ontario, a buyer purchasing a $568,000 home would pay approximately $9,100 in provincial land transfer tax, plus an additional $9,100 if buying in Toronto (where there is also a municipal tax). In BC, the same purchase triggers about $9,100 in property transfer tax. Alberta charges a land title transfer fee on a sliding scale, but on that same $568,000 home it works out to roughly $650 to $800. That is thousands of dollars you simply do not pay in Alberta that buyers in other provinces do.
The Main Closing Costs in Alberta
Legal fees and disbursements
Hiring a real estate lawyer is not optional in Alberta. A lawyer handles the title transfer, registers your mortgage, reviews all purchase documents, and ensures the title is clear on possession day. Expect to pay $1,000 to $2,000 for a standard residential purchase, including disbursements. More complex transactions or condominiums with large document packages can run slightly higher.
Land title transfer fee
Alberta's land title transfer fee is based on the purchase price. For a home in the $500,000 to $600,000 range, the fee is typically $650 to $800. Your lawyer will calculate and pay this on your behalf as part of the closing process.
Title insurance
Title insurance protects against issues with the property's ownership history, survey errors, or undisclosed liens. It is a one-time premium, typically $200 to $400, and most lenders require it. It is worth every dollar: title issues are rare but expensive when they occur.
Home inspection
A professional home inspection for a standard Calgary detached home runs $400 to $600. Larger properties or those with additional structures cost more. While technically optional, skipping the inspection on a used home is a risk very few buyers should take. In Calgary's current more balanced market, you almost never need to waive this condition.
Property tax adjustment
In Alberta, property taxes are billed annually. When you purchase partway through the year, there is typically an adjustment at closing where you either pay the seller for their prepaid taxes, or they credit you for taxes not yet paid. This is not an additional cost but a reallocation, and your lawyer handles the calculation.
Condo document review fee
If you are buying a condominium, your purchase contract will include a condition to review condo documents: meeting minutes, reserve fund study, financial statements, and bylaws. Lenders and lawyers sometimes charge $200 to $500 to review these documents. Ordering the documents from the condo corporation also costs a fee, typically paid by the seller under standard Alberta contracts.
Moving costs
Moving costs are not technically a closing cost, but they land at the same time. Budget $800 to $3,000 depending on the size of your home and the distance of your move. Long-distance moves from another province cost significantly more.
A Realistic Closing Cost Budget for a $568,000 Calgary Home
To make this concrete, here is what a typical closing cost budget looks like for a $568,000 purchase in Calgary with a 10% down payment.
Legal fees and disbursements: $1,500. Land title transfer fee: $750. Title insurance: $300. Home inspection: $500. Property tax adjustment: variable, often $500 to $1,500 depending on purchase date. Moving costs: $1,500. Miscellaneous and buffer: $1,000. Total estimate: approximately $6,000 to $8,000 in cash beyond your down payment.
If your down payment is less than 20%, the CMHC mortgage insurance premium (4% of your insured mortgage on a 5% down payment) is added to your mortgage balance rather than paid in cash at closing, so it does not affect your immediate cash requirements.
Ask your real estate agent and lawyer for a closing cost estimate specific to your purchase as early as possible. A good agent will walk you through expected costs before you make an offer so there are no surprises on possession day.
Frequently Asked Questions
How much are closing costs in Alberta?
Closing costs in Alberta typically range from 1.5% to 4% of the purchase price. On a $568,000 home, that means budgeting between $8,500 and $22,700 beyond your down payment, though in practice many transactions land closer to $6,000 to $10,000 due to Alberta's low land title fees and no land transfer tax.
Does Alberta have a land transfer tax?
No. Alberta does not have a provincial land transfer tax. Alberta charges a land title transfer fee calculated on a sliding scale, but it is dramatically lower than the land transfer taxes charged in Ontario, BC, and most other provinces.
What is the land title transfer fee in Alberta?
For a $568,000 purchase, the land title transfer fee is approximately $650 to $800. This compares to over $9,000 in provincial land transfer tax on the same purchase in Ontario, or nearly $18,000 combined provincial and municipal tax in Toronto.
Do I need a lawyer to buy a house in Alberta?
Yes. A real estate lawyer is required in Alberta to complete the title transfer and register your mortgage. Legal fees for a standard residential purchase typically range from $1,000 to $2,000 including disbursements.
Are closing costs included in the mortgage in Canada?
Generally no. Most closing costs must be paid in cash on or before possession day. The one exception is the CMHC mortgage insurance premium, which can be added to your insured mortgage balance. Budget for closing costs separately from your down payment.
