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Closing Costs with Homes and Mortgages
Posted on | Leah Higgelke | Uncategorized

When buying a home in Alberta you need to budget for more than just your down payment – you’ll also need to account for your closing costs.

Closing costs can add up to anywhere between 0.5% and 2% of the final purchase price of the home and must be paid with cash between the time you make an offer and the day you close.

Here are some of the most common closing costs a buyer in Alberta will encounter.


When you’re ready to make an offer on a home, your agent will ask you to provide a deposit with the offer. The purpose of the deposit is to show the seller that you are serious about buying the home. It makes up part of your down payment, but may very well not be the whole amount. That amount must be paid when you accept and sign the Offer to Purchase, and the funds are held in trust until closing day.

Home Inspection Fee

Home inspections may be optional, but the home inspection report can offer key information that will help home buyers decide whether or not they want to purchase the home. A complete home inspection must be carried out by a registered Alberta home inspector. Since the home inspection industry is regulated in Alberta prices for home inspections don’t vary a lot. Home inspections can cost up to $500, so make sure you account for that in your budget.

Land Transfer Tax

While some provinces require home buyers to pay hefty land transfer taxes Alberta levies a much smaller fee in order to complete the land title transfer. Your land title transfer fees are part of your disbursements with you legal fee.

Legal Fees

Whenever you buy, sell, or refinance a property in Alberta you need to hire a real estate lawyer to deal with all the legal aspects of the transaction. Your lawyer’s job includes conducting a title search, getting title insurance in place, registering all the documents in your name, and facilitating your final transaction.

In Alberta, you can expect to pay at least $1500 in legal fees, disbursements, and title insurance.

Additional Closing Costs to Consider

While we have listed the most common closing costs Alberta home buyers need to take into account when purchasing a home there are a number of additional costs that may arise. These costs could include:

  • Reimbursement of prepaid utilities
  • Reimbursement of prepaid property taxes
  • Taxes or condo fees
  • GST on a new home
  • A new home warranty enrollment fee
  • An appraisal fee
  • A land survey fee

Understanding the different closing costs is an important part of the home buying process. If you’re considering buying a home then knowing about these costs will help you plan your finances accordingly. By budgeting for your closing costs ahead of time you will be better prepared for any expenses that occur come closing time.

Written by Josh Higgelke

Josh is a natural leader and driven entrepreneur. It is fitting that he is a Managing Partner and Broker of Record for Mortgage Connection. Josh has always had a love for everything real estate related and became a Mortgage Broker in 2007.

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