Closing Costs + Additional Expenses

💼 Homebuying Costs in Alberta: What You Need to Know

When buying a property in Alberta, it’s essential to prepare for more than just the down payment. You’ll encounter a variety of closing costs — which are required to complete the transaction — along with additional expenses as part of the home buying process.

✅ What Are Closing Costs?

Closing costs are the legal and administrative fees required to complete yo+ ur home purchase. These are calculated by your lawyer and confirmed during the mortgage approval process, once your lawyer receives instructions from the lender’s funding department. In the upfront underwriting process, the lenders underwriter has a due diligence to ensure you have extra funds (beyond your down payment) to cover these costs. Your lender won’t collect this money — they just need to confirm you have it available and seen along side with your down payment documents.

📌 Estimated Range:

0.5% to 1.5% of the purchase price (dependent on each lenders policies)

🔒 Typical Closing Costs in Alberta

🧑‍⚖️ Lawyer Fees
Required to facilitate your purchase, including disbursements.
Budget: ~$700 base + disbursements (Total estimated between around $2500-$3000)

Disbursements includes document handling, courier charges, title insurance, title and mortgage registration fees and other administrative costs

🏷️ Land Title & Mortgage Registration Fees (Alberta Specific)
Land Title Registration: $50 + $5 per $5,000 (rounded up) of purchase price
Mortgage Registration: Same formula applied to the total mortgage amount, including default insurance if included in the total mortgage.
* these title and registration costs are often part of the full lawyer bill, they will break it down for you.

🏠 Property Tax Adjustments
Your lawyer will calculate and adjust based on the time of year and what the seller has already paid.
This ensures you’re paying your fair share from the closing date onward.

💰 Lender Fees
If your mortgage is needing to be financed in the alternative, private, or commercial lending space— these lenders will charge a lender fee.
Your mortgage broker will confirm if this applies to your mortgage.

➕ Additional Expenses When Buying a Home

These aren’t technically closing costs but are important to budget for as they’re often incurred during or shortly after the purchase.

🔍 Home Inspection
A professional report on the home’s condition.
Estimated Cost: ~$500

💵 Deposit
Paid when making an Offer to Purchase. Counts toward your down payment but shows financial commitment.
No minimum required, though typical deposits range from 1–5% of the purchase price.

🚫 Mortgage Default Insurance
Required when putting less than 20% down. Usually rolled into the mortgage amount.
Still, it’s a significant added cost to be aware of.

🏢 Condo Document Review
When purchasing a condo, most people enlist a professional condo document reviewer. Costs vary by company. But you could estimate $300-$600.

📈 Appraisal Fee– requested by a lender if needed to confirm the value of the property.
Sometimes required if your down payment is 20% or more, if it’s a private sale, or a related-party transaction.
Estimated Cost: $350–$4500 (more for properties that are acreage, out of town, or rush appraisals)

📦 Set-Up & Moving Expenses
Include:

Moving services

Utility account setup (gas, electricity, internet, water)

First month’s mortgage payment

Home insurance

New furniture or home essentials

✅ Quick Tip: Be Prepared, and Be Financially Ready

Keep a buffer in your savings to comfortably cover these expenses. Most lenders want to see you have closing costs on hand, so it’s smart financial planning — and a smoother path to homeownership.