When buyers tell us they have saved a 10 or 20 percent down payment, the conversation often reveals they have not accounted for the additional costs that come with closing a real estate transaction in Calgary. Those costs are real, they add up quickly, and being surprised by them close to your possession date creates serious stress. Here is a complete breakdown of what to expect beyond the purchase price.
The Down Payment and What It Actually Covers
Alberta does not have a provincial land transfer tax, which is a meaningful advantage for Calgary buyers compared to Ontario or British Columbia purchasers. Your down payment is the largest cash requirement, and the minimum depends on the purchase price. For homes under $500,000, the minimum down payment is 5 percent. For homes between $500,000 and $999,999, it is 5 percent on the first $500,000 and 10 percent on the remainder. For homes at $1 million or above, you need a minimum 20 percent down.
CMHC Mortgage Insurance
If your down payment is less than 20 percent of the purchase price, your mortgage must be insured through CMHC (Canada Mortgage and Housing Corporation) or an approved private insurer. The premium is added to your mortgage principal and ranges from 2.80 percent (at 15 to 20 percent down) to 4.00 percent (at 5 to 9.99 percent down). On a $650,000 Calgary home with 5 percent down, this insurance premium adds approximately $24,700 to your mortgage balance. This is not a cash cost at closing, but it directly increases your mortgage and the interest you pay over the life of the loan.
On a $700,000 Calgary home purchased with 10 percent down, budget roughly $25,000 to $35,000 beyond your down payment to cover all closing and move-in costs comfortably.
Home Inspection
A professional home inspection costs $400 to $700 depending on property size and type. For new construction, a new-home inspection runs slightly higher at $500 to $900. This is one cost buyers should never cut. A thorough inspection by a qualified inspector surfaces material defects that can cost tens of thousands of dollars to remedy after closing. In Calgary, the most common inspection findings that affect purchase decisions involve the HVAC system, the roof, the foundation, and the electrical panel. The inspection fee is a small fraction of the protection it provides.
Legal Fees and Title Insurance
You will need a real estate lawyer to handle the title transfer and mortgage registration. Legal fees in Calgary typically range from $1,200 to $2,000, including disbursements. Title insurance, which protects against title defects, fraud, and survey issues, costs $150 to $300 for most residential properties and is worth carrying. Your lawyer handles the title insurance purchase as part of closing. Some lenders require it; others recommend it. We recommend it regardless of the lender's position.
Property Tax Adjustment
On your closing date, you will pay a property tax adjustment to the seller for any property taxes already prepaid by the seller that cover your period of ownership. Calgary's property tax year runs January to December, and taxes are typically due in June. Depending on when you close, you may owe the seller several months of property tax that they have already paid. Your lawyer calculates this adjustment precisely, but it can range from a few hundred dollars to over $3,000 depending on the property value and closing date.
Moving Costs and Immediate Repairs
Local moves within Calgary typically cost $1,000 to $3,000 depending on the volume of belongings. Long-distance moves cost significantly more. Beyond moving, most buyers spend $2,000 to $8,000 in the first three months of ownership on immediate needs: window coverings, appliances not included in the sale, minor repairs, landscaping, and the inevitable items that were not apparent until you moved in and started using the house.
A Complete Cost Summary
For a typical Calgary home purchase at $750,000 with 10 percent down, the total out-of-pocket costs beyond the down payment look like this: home inspection ($500), legal fees and disbursements ($1,500), title insurance ($200), property tax adjustment ($1,500 to $2,500), moving costs ($2,000), and a cash reserve for immediate needs ($3,000 to $6,000). That is approximately $9,000 to $13,000 in addition to your down payment. Add a contingency buffer and the real number to have comfortably accessible on closing day, excluding your down payment, is closer to $15,000.
If you are using our mortgage calculator to plan your budget, make sure these costs are factored into your overall financial picture before you make an offer.
