Closing Costs When Buying a Home in Alberta: The Full Breakdown

Beyond your down payment, buying a home in Alberta comes with a stack of closing costs — but one pleasant surprise: there is no land transfer tax. As a rough planning range (not a quote), budget about 1.5–3% of the purchase price beyond your down payment. Here is where every dollar goes.

Verified news snapshot

• No land transfer tax in Alberta. Buyers pay Land Titles registration fees instead: $50 + $5 per $5,000 of property value for the transfer, and $50 + $5 per $5,000 of mortgage principal for the mortgage — about $1,000 on a $500,000 purchase with a $400,000 mortgage.
• Other standard costs: lawyer/notary fees, home inspection, title insurance (usually required by the lender), property tax adjustments, condo document review (for condos), and moving costs.
• GST of 5% applies to new builds — new-housing rebate eligibility may reduce it; check current CRA rules.
• Rough planning range: 1.5–3% of the price beyond the down payment — an estimate for budgeting, not a quote. Your lawyer gives the exact numbers before closing.

What are the main closing costs in Alberta?

Land Titles fees (~$1,000 on a typical $500K purchase, as above). Lawyer or notary fees for the title search, document preparation and closing — typically in the low four figures. Home inspection — a few hundred dollars that can save you tens of thousands. Title insurance — a one-time premium your lender will usually require, protecting against title defects and fraud. Property tax adjustments — if the seller prepaid taxes beyond your possession date, you reimburse them. Condo document review — for condo purchases, a professional review of the building's financials (worth every penny). Moving costs — movers, or pizza for friends.

How much are Land Titles fees?

The transfer registration costs $50 plus $5 for every $5,000 of the property's value; the mortgage registration costs $50 plus $5 for every $5,000 of mortgage principal. On a $500,000 purchase with a $400,000 mortgage: $550 for the transfer + $450 for the mortgage = about $1,000. Compare that to Ontario's ~$6,475 land transfer tax on the same price — Alberta buyers keep the difference.

What about new construction?

New builds add one big line item: 5% GST on the purchase price. On a $500,000 new home, that is $25,000 — though it is often already built into the advertised price, so confirm with the builder. The federal new housing rebate may let you recover part of the GST if the home will be your primary residence and the price is within the limits — check current CRA rules, as thresholds change. Resale homes do not attract GST.

How should you budget for all of this?

Use the 1.5–3% planning range as a starting point: on a $500,000 home, that is $7,500–$15,000 beyond your down payment. Keep this money liquid and separate from your down payment — closing costs are due on closing day, and "we'll figure it out later" is how deals get stressful. Your lawyer will send a final statement of adjustments before closing with exact numbers; review it line by line and ask about anything you do not recognize.

Frequently asked questions

How much are closing costs in Alberta?
As a rough planning range, 1.5–3% of the purchase price beyond your down payment — so $7,500–$15,000 on a $500,000 home. Your lawyer confirms exact figures before closing.

Do I pay land transfer tax in Alberta?
No. Alberta has no land transfer tax. You pay Land Titles registration fees instead — about $1,000 on a typical $500,000 purchase with a mortgage.

Do I pay GST when buying a home in Alberta?
Only on new construction — 5% GST applies to new builds (often included in the advertised price). Resale homes have no GST. A new-housing rebate may apply; check CRA rules.

What is title insurance and do I need it?
A one-time insurance policy protecting against title defects and fraud. Most lenders require it, and it is inexpensive relative to the protection it provides.

When do I pay closing costs?
On closing day, through your lawyer — who will send a final statement of adjustments beforehand showing every dollar.

Related reading

https://jaypatelhomes.com/buyers-guide/home-buyers-guide-alberta

https://jaypatelhomes.com/home-sellers-guide-alberta

https://jaypatelhomes.com/mortgage-amortization-calculator-alberta

Want your exact closing numbers?

Tell me the price and city — I'll estimate your closing costs to the dollar. Free. Call or text Jay Patel at +1 (825) 889-5383, visit jaypatelhomes.com, or DM me on Instagram @jaypatel.albertarealtor. First conversation is free — no pressure, just real numbers.