Mortgage Registration Fee in Alberta: What You Pay at Land Titles

If you are buying a home with a mortgage in Alberta, you will see a charge for registering that mortgage at Land Titles. It often shows up on your lawyer's closing statement, and many buyers are not sure how it is worked out.

This article explains the levy in plain terms: what it is based on, when you pay it, and a few situations where the amount is different. Your own figures depend on your mortgage, so your lawyer can confirm the final number.

This article covers the law of Alberta.

What the mortgage registration charge is

Alberta has no land transfer tax on a home purchase. Buyers instead pay Land Titles registration charges based on the value of the land. One of those charges is a levy on the mortgage itself.

Under section 102.1 of the Land Titles Act, a mortgagor (the borrower) pays a levy of $50 plus $5 for each $5,000 or portion of $5,000 of the principal secured, when the mortgage or a mortgage caveat is registered. A caveat claiming under an unregistered mortgage is treated the same way, based on the interest claimed.

The transfer of ownership has its own, separate levy. Under section 64.1 of the Land Titles Act, a transferee named in an instrument that transfers ownership, creates a lease, or is a qualifying court order pays $50 plus $5 for each $5,000 or portion of the value of the land or interest in land.

How the amount is worked out

The levy is calculated on the principal amount the mortgage secures, not on the purchase price of the home. A larger down payment means a smaller mortgage, and so a smaller levy.

The words "or portion thereof" matter. Any part of a $5,000 step is charged as a full step. As an illustration on the transfer levy formula, a $400,000 value gives $50 plus 80 steps at $5 each, or $450. The mortgage levy uses the same $50-plus-$5-per-step structure, applied to the principal secured.

Other fees for registering documents are listed in the Tariff of Fees Regulation (AR 120/2000) and must be paid when the documents are submitted. A Common Documents Fee Schedule lists the most common documents. Fee schedules can be updated, so check the current ones or ask your lawyer to confirm any fee other than the levy.

When you pay it and when you do not

• You pay it when a mortgage or mortgage caveat is registered.
• You do not pay it if you buy with cash and have no mortgage.
• If the Registrar does not accept the document, the mortgage levy is returned.
• Land Titles fees are paid at submission, and can be paid in person by cash, cheque, credit or debit, with cheques payable to the Government of Alberta.

Who handles registration and collects these amounts from you at closing depends on your situation, so it is worth confirming with your lawyer. Frequent users can apply for a Land Titles charge account.

The rate change and exceptions

The rate rose recently. Before October 20, 2024 the levy was $1.50 per $5,000 for mortgages and $2 per $5,000 for transfers; it is now $5 per $5,000 for both. The higher rate applies to submissions received by the Land Titles Office on or after October 20, 2024. Articles that quote the older rates are out of date.

There are also exceptions that can change the amount:

• If a new mortgage or caveat is from the same lender as an existing mortgage and is supplemental, collateral, a substitute or a partial replacement, the levy is calculated only on the additional interest or principal.
• An agreement amending a mortgage to increase the interest or principal carries the levy on the additional amount only.
• The levy does not apply to the Crown in right of Canada or Alberta, other than agents of the Crown in right of Alberta, the Minister of Municipal Affairs acting under Part 10 of the Municipal Government Act, and the Public Trustee.
• Mortgages and caveats submitted before section 102.1 came into force are exempt from the levy but pay fees under the earlier Tariff of Fees Regulation.

What to do next

• Ask your lawyer for an estimate of the Land Titles charges before closing day.
• Confirm the principal amount of your mortgage, since the levy is based on it.
• Tell your lawyer if you are refinancing, adding to an existing mortgage with the same lender, or amending a mortgage, because the levy may be calculated on a smaller amount.
• Keep funds ready for closing costs, because fees must be paid at submission.
• Check the current Tariff of Fees Regulation and Common Documents Fee Schedule if you want to see other registration fees.

Frequently asked questions