When buying a home in Alberta, it’s important to plan for various closing costs beyond the purchase price. Here’s a breakdown of some key expenses buyers can expect, with an emphasis on up-to-date fee changes and a general range of costs.
Legal Fees: Hiring a real estate lawyer to handle paperwork, title transfers, and other legal matters is essential. Legal fees typically range from $800 to $2,000, depending on the complexity of the transaction.
Home Inspection: A professional home inspection is strongly recommended to ensure the property is in good condition. Inspections can range from $400 to $800 based on the size and age of the home.
Appraisal Fees: Mortgage lenders may require a home appraisal to confirm the property’s value, especially for out-of-province buyers. Appraisal fees typically range from $300 to $500.
Land Transfer Fees: Important update: As of October 20, 2024, Alberta's land transfer fees have increased. The new fees are calculated at $5 per $5,000 of property value, plus a $50 base fee. For example, on a property valued at $1,000,000, the land transfer fee has increased from $450 to $1,050.
Mortgage Registration Fees: Similar to land transfer fees, mortgage registration costs will also rise after October 20, 2024, to $5 per $5,000 of the mortgage amount, plus a $50 base fee. This fee was previously much lower, so buyers should prepare accordingly.
Title Insurance: While optional, title insurance protects buyers from potential issues with the property’s title. Title insurance costs typically range from $250 to $400.
GST (on New Builds): For buyers purchasing a new construction home, GST (Goods and Services Tax) is applied at a rate of 5% on the purchase price. However, rebates may be available under certain conditions.
Property Tax Adjustments: Buyers may need to reimburse the seller for any prepaid property taxes. The amount depends on the closing date and the total taxes paid for the year.
Moving Costs: Don’t forget to factor in the cost of moving! Whether you’re hiring professional movers or renting a truck, moving expenses can range from $500 to $2,000 depending on the distance and services needed.
Are you ready to start looking for your next home? Let’s connect and schedule a consultation—we’ll discuss your needs, explore options, and ensure you’re well-prepared for this exciting journey. I’m here to refine your real estate experience from start to finish!