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 actual legal and administrative fees required to complete your home purchase. These are calculated by your lawyer, once they receive instructions from your lender’s funding department and paperwork from the realtors involved. The final breakdown of what you owe at closing is provided in a document called the Statement of Adjustments.

Because you won’t know the exact amount until your lawyer prepares this document, it’s important to plan and budget for predictable out-of-pocket costs in advance. In Alberta, a safe range for actual closing costs is typically 1.5% – 4% of the purchase price, depending on the property type (condo vs. detached), mortgage size, and whether extras items are done. But we always recommend to keep a running list of numbers you may know for sure and numbers you are estimating, as they can add up!

Lender Closing Cost Estimates Are Different

During the mortgage approval process, your lender’s underwriter needs to confirm you have additional funds available beyond your down payment, this is to show that you’re financially prepared for closing costs. This is only for qualification purposes; not the actual cost you’ll pay at closing.

Your lender is not collecting this money, and they won’t know your exact closing cost total. Its simply an estimated number, as part of their qualification process. Each lender has their own policy, but in Alberta, they typically want to see that you have 0.5% to 1.5% of the purchase price set aside as a buffer.

Typical Closing Costs in Alberta

Bridge Financing

If you need a bridge loan there are additional costs considered in the loan.

Lawyer Fees

Required to facilitate your purchase, including disbursements.
Budget: $750 base + disbursements
(Total estimated between around $2500-$3000) for a standard residential purchase.

Disbursements are items such as but not inclusive or limited too: document handling, courier charges, title insurance, land title and mortgage registration fees and other administrative costs.

If you require private lending expect to double this amount as you will be required to pay for your lawyer and the lenders lawyer costs.

Commercial Lending– higher cost and you pay for your lawyer and the lenders lawyer.

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.

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.

Estoppel Fees
Required when purchasing a condo; it provides financial details about the condo corporation (e.g., reserve fund status, arrears). Estimate $200-$350.

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.

Property Tax Holdbacks – If you’re paying property taxes through your mortgage lender, they may require an upfront payment to cover any potential shortfall when they pay the tax bill on your behalf. We also recommend that you ask and understand upfront; what year the tax bill will be paid to your municipality by your lender.

Mortgage Penalties and Costs to Pay Out Your Existing Mortgage Lender

If you’re buying and selling, and either breaking or porting your mortgage, there may be associated costs. Mortgage penalties are typically calculated only when a payout statement is requested, based on the date the mortgage balance is scheduled to be paid out.

Title Insurance

Title insurance protects against potential issues with the ownership (or “title”) of your property, such as fraud or past permit violations. In Canada, lenders typically require a lender policy, while homeowners can choose to add an owner policy for added protection at a low, one-time cost. Both are paid for by the owner and arranged through your lawyer at the time of purchase or refinance.

Talk with your lawyer about costs but typically lender title insurance is about $500 or less. This can change and does depend on your lender.

➕ Additional Expenses When Buying a Home

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

Appraisal Fee– requested by a lender when needed to confirm the value of the property.
Sometimes required if your down payment is 20% or more, and almost always required if its 20% down payment or more and it’s a private sale, or a related-party transaction.

Estimated Cost:

Residential Property: $350–$450 (it can be higher if it has to be rushed, over the weekend, for properties that are acreage or out of town)
Commercial Property Appraisals are much higher: estimate $3500 + depending on the scope of the project/property.

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.

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.

Home Inspection
A professional report on the home’s condition.
Estimated Cost: $500-$700

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. The insurance premium is added on top of the base mortgage amount.

Set-Up & Moving Expenses

Include things such as:

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.