Short answer: Budget about 1.5% of the purchase price for closing costs in Alberta. They cover legal fees, land titles registration, title insurance, a home inspection and property tax adjustments. Alberta has no land transfer tax. Closing costs must come from your own funds, separate from the down payment.
Most first time buyers focus on the down payment. But there’s a second bucket you can’t ignore: closing costs, the extra expenses you pay to actually get the keys.
What Are Closing Costs?
One time expenses paid on or before possession day to:
- Legally transfer the home into your name
- Register your mortgage
- Protect you and your lender (title insurance, home insurance)
- Adjust property taxes or condo fees between you and the seller
They’re separate from your down payment and usually can’t be borrowed on your mortgage.
How Much to Budget
Many Canadian buyers budget 1.5% of the purchase price. Alberta tends to be on the lower end because there’s no provincial land transfer tax, but you still pay legal fees, registrations and inspections.
Example: $450,000 home × 1.5% = $6,750
Use our closing cost calculator for a closer estimate.
Key Closing Costs in Alberta
1. Legal fees and disbursements
Your real estate lawyer reviews the contract, transfers the land, registers your mortgage and moves the funds. You pay base legal fees plus disbursements (title searches, courier, admin).
2. Land titles and mortgage registration fees
Alberta has no land transfer tax, but charges fees to register you as owner and to register your mortgage. Your lawyer collects them. See our Alberta land titles fee guide and calculator.
3. Property tax and condo fee adjustments
Property taxes are annual and condo fees monthly, so they’re prorated at closing. You may reimburse the seller for prepaid taxes or fees.
4. Title insurance
Protects against title defects and fraud, is often required by the lender, and is a one time premium. It can also cover gaps if the Real Property Report (RPR) isn’t perfect.
5. Home inspection
Paid before you waive conditions. It helps you spot repairs before you commit.
6. Appraisal, if required
Your lender may require one to confirm value. Sometimes the lender covers it.
7. Mortgage default insurance premium
Required with less than 20% down. It’s usually added to the mortgage, not paid at closing. In Alberta there’s no provincial sales tax on the premium.
8. Home insurance
Your lender needs proof of coverage before funding.
9. Moving and set up costs
Movers, utility connections, new locks, furniture and small repairs. Build a buffer.
Sample Breakdown: $450,000 Home in Calgary
| Item | Estimated cost |
|---|---|
| Legal fees and disbursements | $1,500 to $2,000 |
| Land titles and registration | $300 to $500 |
| Title insurance | $250 to $400 |
| Property tax adjustment | Varies |
| Home inspection | $400 to $600 |
| Home insurance (first payment) | $100 to $200 |
| Moving and setup | $500 to $1,500 |
| Estimated total | $3,050 to $5,200 plus adjustments |
Your costs may vary. We help you estimate them early.
When Are Closing Costs Due?
A few days before possession, your lawyer sends a statement of adjustments listing the balance of the purchase price, legal fees and disbursements, and property tax adjustments. You provide a bank draft to your lawyer before possession day. The inspection and any appraisal are paid earlier.
How Can I Reduce Closing Costs?
- Compare lawyers: get two or three quotes. Fees vary.
- Ask about lender promotions: some lenders offer cash back or cover certain fees.
- Choose your possession date with care: it changes the property tax adjustment.
- Bundle services: some lawyers include title insurance in package pricing.
Total Cash Needed: $450,000 Home With 5% Down
- Down payment: $22,500
- Closing costs: about $6,500
- Emergency fund: about $5,000 or more
- Total cash needed: about $34,000
Buying a new build? The First Time Home Buyers’ GST rebate can offset a large part of your costs. See our GST new housing rebate guide.
→ Related: Down Payment Requirements in Canada
Your Next Step
Closing costs are part of the puzzle. Talk to us about your full first time buyer plan or read the First Time Home Buyer Guide.
Frequently asked questions
How much are closing costs in Alberta?
Most buyers budget about 1.5% of the purchase price. On a $450,000 home that's about $6,750. Alberta has no land transfer tax, so costs are lower than in BC or Ontario.
Does Alberta have a land transfer tax?
No. Alberta charges small land titles registration fees for the transfer and the mortgage instead of a percentage based land transfer tax.
This article is general information, not personal financial advice. Rates, rules and programs change. Talk to a licensed mortgage broker about your situation. Lacroix Mortgage Group is licensed and powered by Mortgage Connection Inc.
Lacroix Mortgage Group, licensed and powered by Mortgage Connection Inc.
Tim Lacroix, Mortgage Broker · Alberta licence CON-00005179 (RECA) · BC licence 503533 (BCFSA)
Call or text (403) 648-1541 · hello@lacroixmortgage.com · Calgary, Alberta