Closing costs in Alberta: the money buyers forget

Most buyers plan carefully for the down payment. Fewer plan for the cheques due on closing day. The Financial Consumer Agency of Canada (FCAC) suggests budgeting 1.5% to 4% of the purchase price for closing costs, separate from your down payment. On a $500,000 home, that's roughly $7,500 to $20,000, depending on the property and your choices.

Good news first: Alberta has no land transfer tax

Buyers in some other provinces pay a provincial land transfer tax that can run into the thousands. Alberta doesn't have one. Instead, you pay registration fees to Alberta Land Titles, which are much smaller.

Land Titles fees, with a worked example

Under the Government of Alberta's fee schedule effective October 1, 2026, two registrations matter for most buyers:

• Transfer of land (putting the title in your name): $50 plus $5 for each $5,000, or portion of $5,000, of the value of the land.
• Mortgage (registering your lender's charge): $50 plus $5 for each $5,000, or portion of $5,000, of the mortgage principal.

Example: a $500,000 home with a $450,000 mortgage.

• Transfer: $500,000 ÷ $5,000 = 100 × $5 = $500, plus $50 = $550
• Mortgage: $450,000 ÷ $5,000 = 90 × $5 = $450, plus $50 = $500
• Total Land Titles fees: $1,050

Amounts that aren't an even multiple of $5,000 round up to the next $5,000. The transfer fee is based on the value of the land, which can differ from the purchase price. Your lawyer usually pays these fees on your behalf and lists them on the statement of adjustments.

The closing costs buyers often miss

Legal fees and disbursements

In Alberta, a lawyer typically handles the transfer of title and the mortgage registration. Ask for a quote that includes disbursements (searches, couriers, registration fees) so the total doesn't surprise you.

Title insurance

Many lenders require or accept title insurance, which protects against problems with the title such as fraud, errors in a survey or certain unregistered issues. It's usually a one-time premium paid at closing.

Home inspection

An inspection before you firm up the deal can reveal issues with the roof, foundation, wiring or furnace. It's optional, but skipping it can cost far more later. On acreages, also budget for well water and septic checks.

Appraisal

Your lender may require an appraisal to confirm the home's value, and CMHC notes it may be at your expense. Some lenders cover it; ask up front.

Property tax adjustment

If the seller has already paid this year's property taxes, you'll reimburse them for the days after you take possession. If taxes are unpaid, the adjustment can go the other way.

Everything else

Home insurance (your lender will want proof before funds are released), moving costs, utility hookups, and for new builds, GST. Eligible first-time buyers of new homes may qualify for the federal First-Time Home Buyers' GST rebate, so ask your builder and lawyer.

Mortgage insurance: premium vs. closing cost

With less than 20% down, your mortgage needs default insurance. The premium can be paid up front but is usually added to the mortgage, so it typically isn't part of the 1.5% to 4%. Alberta doesn't charge provincial sales tax on the premium (FCAC lists Ontario, Manitoba and Quebec as the provinces that do). Adding the premium does increase what you owe, and you pay interest on it, so include it when you compare payments. See how much you need down.

How to budget with confidence

1. Get a pre-approval so you know your price range and payment, including the stress test.
2. Set aside closing costs separately from your down payment. Lenders often ask to see these funds.
3. Get quotes for legal fees, inspection and insurance before you write an offer.

Buying your first place? See first-time home buyer mortgages in Alberta for the FHSA, the Home Buyers' Plan and other programs.