Closing Costs When Buying a Home in Calgary

The down payment is usually the largest upfront expense, but it is not the only amount a buyer should plan for.

Knowing the other potential costs before you write an offer makes it easier to build a realistic buying budget.

Legal fees and closing work

In Alberta, a real estate lawyer handles the legal side of closing: reviewing title, preparing transfer and mortgage documents, receiving and distributing funds, and registering the change of ownership. Fees and disbursements vary by lawyer and by the complexity of the transaction, so request a quote early rather than assuming a number.

Property tax adjustments

Property taxes are paid on an annual cycle. If the seller has already paid taxes covering a period after your possession date, your lawyer will calculate an adjustment and you reimburse the seller for your share. If taxes are owing, the adjustment can go the other way. Either way, it appears on your statement of adjustments at closing.

Home inspection costs

When an inspection is part of your offer, you pay the inspector directly. Pricing depends on the property type, size and any additional services. Inspection is not a formality — it is how you learn about visible conditions before your conditions are removed.

Condo document review where applicable

If you are buying a condo, your conditions may include reviewing the condominium corporation's documents — financial statements, reserve fund information, meeting minutes, bylaws and insurance. Some buyers use a professional document-review service, which carries its own fee. It's worth budgeting for, because the building's financial health affects your future costs.

Insurance and financing-related costs

Your lender will require home insurance in place for possession, and condo owners will need their own unit coverage in addition to the corporation's policy. Depending on your down payment and lender, there may also be mortgage default insurance or appraisal-related costs. Your mortgage professional can confirm exactly which apply to your financing.

Moving and immediate ownership costs

Movers or a truck, utility connection fees, changing locks, basic tools, window coverings and any appliances that aren't included all tend to arrive in the same few weeks. None is large alone, but together they can be meaningful.

Does Alberta have a land transfer tax?

No — Alberta does not charge a provincial land transfer tax. Instead, there are much smaller government registration fees for the title transfer and mortgage. I've covered this in more detail in what you'll actually pay to buy in Alberta.

Build a complete home-buying budget

The simplest approach is to list every cost above next to your down payment before you start viewing homes. If you're still working out the down payment itself, read how much down payment you need in Calgary.

Buying your first home in Calgary? My Calgary first-time buyer guide walks through the process from budget to possession.