Alberta skips the land transfer tax. That doesn’t mean it skips the bill.
Most Calgary buyers should plan for closing costs of roughly 2% to 3% of the purchase price, on top of the down payment. On a $500,000 home, that’s about $10,000 to $15,000. The good news: Alberta has no land transfer tax, so a line item that costs buyers thousands in other provinces isn’t on your bill here.
Here’s what most buyers don’t realize: closing costs aren’t one big bill. They’re a dozen smaller ones, and they tend to show up right when you’re busy picking a possession date and booking movers. Let’s put them all in one place.
What counts as closing costs?
Closing costs are the cash you need beyond your down payment to finish the purchase. You pay them around the time you take possession. They are not your moving costs, and they are not the down payment.
The Calgary closing cost checklist
| Cost | Typical range | What it is |
|---|---|---|
| Land title and mortgage registration | Based on price (see below) | Government fees to put the home in your name and register your mortgage |
| Legal fees | $1,200 to $1,900 | Your lawyer reviews the contract, searches title, and handles the funds |
| Legal disbursements | $200 to $400 | Searches and registrations your lawyer pays on your behalf |
| Title insurance | $200 to $500 | Protects you against certain ownership problems |
| Home inspection | $400 to $700 | Optional, but we strongly recommend it |
| Appraisal | $300 to $500 | Sometimes required by your lender, and sometimes covered or waived |
| Home insurance (first year) | $1,200 to $2,400 | Your lender will want proof before possession |
| Property tax and condo fee adjustments | $300 to $2,000 | You reimburse the seller for anything they prepaid past your possession date |
Ranges are typical for Calgary and vary by home, lender, and lawyer.
What Alberta charges instead of a land transfer tax
Alberta charges a registration fee at Land Titles. For a transfer of land it’s $50 plus $5 for every $5,000 of the property’s value. Registering a mortgage works the same way, based on the mortgage amount.
Here’s a real example. You buy a $500,000 home with a $400,000 mortgage:
- Transfer of land: $50 + $500 = $550
- Mortgage registration: $50 + $400 = $450
- Government fees total: $1,000
So why the 2% to 3% rule?
Add up the checklist for a $500,000 resale home and you’ll often land somewhere around $4,500 to $9,500. So why budget more? Because the rule of thumb leaves room for the things that surprise people: bigger tax adjustments, lender fees, a higher insurance quote, and the small costs that pile up in the last week. We’d rather you budget high and be pleasantly surprised than the other way around.
Buying a new build? Add a few more lines
New construction has extra costs. GST generally applies to new homes, and rebates may apply depending on your situation and current federal rules. New homes in Alberta also come with a mandatory new home warranty. Ask your builder for the exact numbers early, and check the current GST rules with your lawyer.
Five ways to keep closing costs from catching you off guard
- Get a legal quote early. Fees vary, so ask what’s included before you book.
- Ask your lender about the appraisal. Some lenders cover it or waive it.
- Get your home insurance quote before possession week. It takes longer than you’d think.
- Ask us for a property tax and condo fee estimate. We can work out the adjustment before you write an offer.
- Keep closing costs and moving costs in separate budgets. They’re due at different times.
How we help
When we work with buyers, we walk through closing costs before you write an offer, so there are no surprises at possession. Then we stay involved through the details: conditions, financing timelines, your lawyer, and the key handoff.
Want to know what closing costs would look like on the home you’re considering? Send us a message and we’ll walk through the numbers with you.
Frequently asked questions
Does Alberta have a land transfer tax?
No. Alberta charges land title and mortgage registration fees instead. They’re based on the property value and mortgage amount, and they’re much smaller than land transfer taxes in some other provinces.
Who pays closing costs in Calgary, the buyer or the seller?
Each side pays its own. Buyers cover their legal fees, registration fees, insurance, and adjustments. Sellers cover their own costs, such as their lawyer and their real estate commission.
How much cash do I need besides my down payment?
A good rule of thumb is 2% to 3% of the purchase price. Your actual costs may come in lower, and it’s better to plan for the higher end.
Can I add closing costs to my mortgage?
Generally, closing costs are paid from your own funds rather than rolled into the mortgage. Ask your lender what applies to your situation.