Most provinces in Canada charge a significant amount in closing costs, which can be mainly attributed to the land transfer taxes that they levy. Alberta and Saskatchewan are the only two provinces that do not have this tax. Although there is no Alberta land transfer tax, there is still a land transfer registration is fee and a mortgage registration fee to consider.
The two fees are calculated as follows:
- Property registration fee – $50, plus $1 for every $5,000 of property value (rounded up to the nearest $5,000)
- Mortgage registration fee – $50, plus $1 for every $5,000 of your mortgage amount (rounded up to the nearest $5,000)
To clarify further, take a look at the following example: Let’s say you purchase a home with a property value of $400,000 after finding the best Alberta mortgage rate. You put in a 20% down payment to avoid CMHC insurance, so your mortgage amount comes to $320,000.
Property registration fee: $50 + [$1 x ($400,000 / $5,000)] = $130
Mortgage registration fee: $50 + [$1 x ($320,000 / $5,000)] = $114
Your total fees would come to $244.
You can use our Ratehub.ca land transfer tax calculator to determine what your tax will be in Alberta.