Understand Closing Costs When Buying a Home in Alberta!
If you're preparing to buy a home in Calgary, you've likely heard the term “land transfer tax” come up during your research. But here's the good news: Alberta is one of the few provinces in Canada that does not charge a traditional land transfer tax.
That said, there are other government fees and closing costs you should understand before signing on the dotted line. In this post, we’ll break it all down for you — simply and clearly.
What Is Land Transfer Tax?
A land transfer tax (LTT) is a provincial fee charged when the ownership of property is transferred from one person to another. It’s common in places like Ontario, BC, and Quebec, where buyers can pay thousands of dollars in land transfer taxes based on the price of their home.
But Not in Alberta
In Alberta — and specifically Calgary — there is no formal land transfer tax.
Instead, buyers pay much lower government fees, which are often misunderstood or lumped under the same term. These fees are:
- Land Titles Transfer Fee
- Mortgage Registration Fee (if applicable)
What Will You Actually Pay?
As of 2025, here’s what Calgary buyers can expect:
1. Land Titles Transfer Fee
Base Fee: $50
Plus: $2 for every $5,000 (or part thereof) of the property value
Example:
For a $500,000 home: $50 + ($2 × 100) = $250 total
2. Mortgage Registration Fee (if you’re financing)
Base Fee: $50
Plus: $1.50 for every $5,000 of the mortgage amount
Example:
For a $400,000 mortgage: $50 + ($1.50 × 80) = $170 total
Quick Comparison: Alberta vs. Ontario
Total Transfer Costs On a $500K Home
Ontario ~$6,475 Land transfer tax applies
Alberta ~$250–$420 Only registration fees
So if you’re buying in Calgary — you’re saving thousands just by purchasing in Alberta.
Final Tips for Calgary Buyers:
- Budget for all closing costs, not just title fees — include legal, inspection, and insurance costs
- Ask your real estate agent or lawyer for an estimate of your total closing fees based on your purchase price and mortgage
- If you're a first-time buyer, explore provincial or federal incentives like the First-Time Home Buyer Incentive or RRSP Home Buyers’ Plan
Ready to Buy in Calgary?
The affordability of Alberta’s closing fees is just one of the many reasons more buyers are making Calgary home. If you’re looking to understand the full buying process, we’re here to help — from pre-approval to keys in hand.
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