Closing Costs When Buying a House in Alberta: What to Expect

The down payment is the number most buyers plan around, but it is not the only money due on closing. A handful of government charges, tax adjustments and optional protections all land at the same time, and they are easier to handle if you know about them early.

This article walks through the main closing costs for an Alberta home purchase, what drives each one, and how to build a realistic estimate with your lawyer before possession day.

This article covers the law of Alberta.

What Alberta does not charge

Many buyers expect a land transfer tax because other provinces have one. Alberta does not charge a land transfer tax on a home purchase, and it has no provincial sales tax either, so only federal GST can apply, mainly to new homes and certain other cases.

Instead, buyers pay Land Titles registration charges based on the value of the land, which is generally the purchase price. Fees for registration are listed in the Tariff of Fees Regulation and must be paid when the documents are submitted.

The main closing costs at a glance

Legal fees, an appraisal, a home inspection and moving costs also arise for many buyers. Those vary by situation, so ask for them in writing early.

Land Titles levies in practice

The transfer levy is $50 plus $5 for each $5,000 or portion of the value of the land, and any part of a $5,000 step is charged as a full step. On a $400,000 value that works out to $450.

The mortgage levy uses the same formula, but it is based on the principal secured by the mortgage, not the purchase price, and a buyer paying cash with no mortgage does not pay it. As an illustration, a mortgage securing $400,000 of principal would carry a $450 mortgage levy under that same formula.

These levies rose to $5 per $5,000 for submissions received on or after October 20, 2024, so older figures you see online may be out of date.

GST and property taxes

Resale homes are generally exempt from GST when sold by someone who is not a builder, with exceptions such as a seller who claimed input tax credits on the home or used a unit mainly for business. New homes are different: a 1998 CRA policy statement says GST is payable on the full consideration at final closing, when possession is transferred, although that statement may not reflect later changes, so confirm the timing with your lawyer.

Rebates may reduce GST on a new home. The New Housing Rebate is 36% of the GST paid up to $6,300, available in full at $350,000 or less and nil at $450,000 or more. The home must be bought or built as your (or a relation's) primary place of residence, so a recreational cottage or investment property does not qualify. The First-Time Home Buyers' rebate can be up to 100% of the GST on a new or substantially renovated first home, to a maximum of $50,000, with the full rebate at $1 million or less. For a home bought from a builder, the purchase agreement generally must be dated on or after March 20, 2025. Other conditions apply to each rebate, so confirm them before you rely on one.

For property taxes, unpaid taxes are a special lien on the land, which is why they are dealt with at closing. Your lawyer can obtain a tax certificate showing taxes owing, arrears and any deferred taxes. How the taxes are split between you and the seller is set by your purchase contract, so read that part carefully.

Building your estimate

• Confirm whether your home is new or resale, since that decides whether GST is in play.
• Ask whether the price in your contract includes GST on a new home.
• Work out the transfer levy from the purchase price and the mortgage levy from the mortgage principal.
• Ask your lawyer for the property tax adjustment once the tax certificate is in.
• Decide whether to buy title insurance and get the cost in writing.
• Keep a cushion for legal costs, inspection, appraisal and moving.

Title insurance is not required by the standard Alberta purchase contract, which does require a Real Property Report, and it does not replace that report. A lender's policy protects only the lender, while an owner's policy can cover some non-title issues such as encroachments.

What to do next

Before you remove conditions, ask your lawyer for a written closing-cost estimate based on your contract. A lawyer can also help make sure the purchase closes on time under the signed contract. Keep in mind that Land Titles fees can change, so the figures on closing day should be confirmed.

Frequently asked questions