What Are Closing Costs on an Alberta Mortgage?
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·Reviewed by a mortgage professional
Short answer
Alberta buyers typically budget 1.5%–3% of the purchase price for closing costs — mainly legal fees, title insurance, appraisal, and home inspection. Unlike Ontario or BC, Alberta has no provincial land transfer tax, which keeps this side of the budget lower than many provinces.
The plain-English version
Closing costs are the fees and charges due when your purchase completes, separate from your down payment. They cover the legal work to register the mortgage, confirm title, and insure the transaction.
Your down payment goes toward the purchase price; closing costs are paid in addition — usually from savings, not added to the mortgage (except in rare structured deals).
Alberta-specific considerations
- No Alberta land transfer tax — a meaningful savings vs. provinces that charge one on top of everything else.
- Property tax adjustments at closing depend on what the seller prepaid for the year.
- New builds may involve GST (with possible rebates) and different legal workflows than resale purchases.
Example scenario
On a $500,000 resale home, buyers often budget $7,500–$15,000 for closing — legal ($1,500–$2,500), appraisal ($300–$500), inspection ($400–$600), title insurance, and adjustments. Exact amounts vary by lawyer and property.
Common mistakes to avoid
- Forgetting closing costs when calculating total cash needed beyond the down payment.
- Assuming CMHC insurance is a closing cost paid upfront — it is usually added to the mortgage when applicable.
- Not leaving a buffer for moving costs, utility hookups, and immediate repairs.