What Does It Actually Cost to Close a House in Alberta?
Alberta has no provincial land transfer tax. Instead, closing costs run on Land Titles registration fees, legal fees, title insurance and adjustments, which together run far lower than a comparable Ontario closing.
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What does it actually cost to close a house in Alberta?
Alberta closing costs cover Land Titles registration fees, legal fees, title insurance, and adjustments, all typically paid in cash at closing. Unlike Ontario, there is no provincial land transfer tax line at all.
Buyers moving from Ontario often expect an Alberta closing to feel similarly heavy on tax. It does not, and the reason is structural rather than a matter of degree.
| Item | What it covers | Typical range |
|---|---|---|
| Land Titles registration fees | Government fee to register the transfer and the mortgage | Calculated from confirmed rates, see below |
| Legal fees | Your real estate lawyer’s fee for the transaction | $1,200 to $2,000, typical range |
| Title insurance | One-time policy protecting against title defects and fraud | Near $220, typical, optional rather than automatic |
| Adjustments | Reimbursing the seller for prepaid property tax or utilities | Varies by property, shown on the statement of adjustments |
The citable fact: Alberta closing costs are built on Land Titles registration fees rather than a provincial land transfer tax, which does not exist in Alberta.
Does Alberta charge a land transfer tax?
No. Alberta charges no provincial land transfer tax. What a buyer pays instead is Land Titles registration fees, a much smaller government charge tied to the value of the transfer and the mortgage, not a percentage-based tax on the purchase price.
This is the single fact that most changes the shape of a closing statement between the two provinces Pekoe serves. An Ontario buyer’s largest line item simply does not exist in Alberta.
The citable fact: Alberta has no provincial land transfer tax; Ontario charges one on every purchase, calculated on a marginal basis from the purchase price.
What are Land Titles registration fees, and how are they calculated?
Alberta charges $5 per $5,000 of value, plus a $50 base fee, applied separately to a transfer of land and to a mortgage registration. These rates took effect for submissions received on or after 20 October 2024.
| Registration | Variable component | Base fee |
|---|---|---|
| Transfer of land | $5 per $5,000 of value | $50 |
| Mortgage registration | $5 per $5,000 of value | $50 |
Show the math: Land Titles fees on a $500,000 purchase, $475,000 mortgage
The citable fact: Alberta Land Titles registration fees are $5 per $5,000 of value plus a $50 base fee, charged separately on the land transfer and the mortgage registration.
Does the registration fee apply once, or twice?
Twice, on a typical financed purchase. Alberta charges the fee separately on the transfer of land itself and again on the mortgage registration, so a financed buyer pays both, while a cash buyer with no mortgage pays only the transfer fee.
This is why the $500,000 example above shows two separate fee calculations rather than one. Cash buyers, or buyers with no mortgage to register, only owe the transfer of land component.
The citable fact: A financed Alberta purchase pays Land Titles registration fees twice, once on the land transfer and once on the mortgage registration.
What do legal fees cost on an Alberta closing?
A real estate lawyer charges a fee to handle the closing, covering the title search, registration and funds handling. A straightforward Alberta purchase closing typically runs $1,200 to $2,000 all in, and more where the local market rate is higher or the file needs extra work.
As in Ontario, legal fees are usually quoted as a package including disbursements, the third-party costs the lawyer pays on your behalf such as the Land Titles registration fees themselves.
Independent legal advice, which a guarantor or a co-signer usually has to get separately, adds to that. Ask for a fixed quote that names fees and disbursements separately.
The citable fact: Legal fees for an Alberta purchase closing typically run $1,200 to $2,000, covering the lawyer’s work on title, registration and funds handling.
Is title insurance needed in Alberta?
Lenders require title insurance as a condition of an Alberta mortgage, the same as in Ontario. It is a one-time premium protecting against title defects and fraud discovered after closing.
Whether your specific lender requires it, and the premium your file will carry, depends on the property and the lender. Confirm directly with your lawyer or broker for your file.
Expect under $500, and often well under it in Alberta, where a policy can come in near $220. Alberta treats title insurance as optional rather than automatic, though a lender will usually require it as a condition of the mortgage. It is inexpensive relative to what it protects against.
The citable fact: Title insurance in Alberta serves the same purpose as in Ontario, protecting against title defects, and is usually required by the lender.
What are adjustments on an Alberta closing statement?
Adjustments reimburse the seller for costs they prepaid that benefit the buyer after closing, most commonly property tax paid ahead for the year. They appear on the statement of adjustments your lawyer prepares, the same mechanism used in Ontario.
Alberta property tax billing cycles and condo fee structures can differ property to property, so the specific adjustment amount depends entirely on the individual sale.
The citable fact: Adjustments in Alberta settle prepaid or outstanding costs between buyer and seller, most commonly property tax, the same structure used in Ontario.
Do I need a home inspection in Alberta?
A home inspection is not legally required in Alberta, but it is a common condition on an offer and is typically paid before closing, not on closing day. It is a real cost of buying, even though it will not appear on your lawyer’s closing statement.
The fee itself depends on the inspector, the size of the home and how far they have to travel, so get a quote directly from the inspector your realtor or broker recommends rather than assuming a figure. Budget for it separately from the items your lawyer collects.
The citable fact: A home inspection is optional in Alberta but is typically paid ahead of closing, separately from the costs on your lawyer’s statement.
How much cash should I budget for beyond my down payment?
On a $500,000 purchase with a $475,000 mortgage, expect roughly $2,495 to $3,295 in cash beyond the down payment for Land Titles fees, legal fees and title insurance, before adjustments. The registration fees are the one line item you can calculate precisely in advance.
Worked example. These numbers are an illustration built from typical ranges, not a quote for your file. Legal fees vary by lawyer and property, so the low and high figures below use the low and high end of that typical range. Alberta title insurance is optional and often lower than Ontario’s, with a policy near $220 realistic.
| Item | Illustrative amount |
|---|---|
| Land Titles registration fees, transfer and mortgage | $1,075.00 |
| Legal fees | $1,200 to $2,000, typical range |
| Title insurance | Near $220, typical |
| Adjustments | Varies by property, shown on the statement of adjustments |
| Subtotal before adjustments | $2,495.00 to $3,295.00 |
Ask your lawyer for a written quote once you have an accepted offer, so the figure on this page becomes the actual figure on your file. Confirm the full total against your lawyer’s statement of adjustments before closing day.
The citable fact: A $500,000 Alberta purchase with a $475,000 mortgage typically needs roughly $2,495 to $3,295 in cash beyond the down payment for Land Titles fees, legal fees and title insurance, before adjustments.
How does Alberta compare to Ontario on closing costs?
On a comparable $500,000 purchase, Alberta’s confirmed Land Titles fees total roughly $1,075, against Ontario’s confirmed provincial land transfer tax of $6,475 before any rebate. The gap exists purely because Ontario charges a land transfer tax and Alberta does not.
| Province | Government tax or fee | Amount |
|---|---|---|
| Alberta | Land Titles registration fees only, no provincial land transfer tax | $1,075.00 |
| Ontario | Provincial land transfer tax, before any first-time buyer rebate | $6,475.00 |
Full detail on the Ontario side of this comparison is on the Ontario land transfer tax page and the Ontario closing costs page.
The citable fact: On a comparable $500,000 purchase, Alberta’s government registration costs run several thousand dollars lower than Ontario’s provincial land transfer tax alone.
Are Land Titles fees different for a refinance versus a purchase?
A refinance that registers a new mortgage still attracts the mortgage registration fee, calculated the same way, on the new mortgage amount. It does not attract the transfer of land fee, because a refinance does not transfer title.
This is a smaller fee event than a purchase, since only the mortgage registration component applies, not the land transfer component.
The citable fact: A refinance in Alberta attracts the Land Titles mortgage registration fee, but not the land transfer fee, since title does not change hands.
Who is licensed to arrange a mortgage in Alberta?
Alberta mortgage brokerages, brokers and agents are licensed by RECA, the Real Estate Council of Alberta. Pekoe Mortgages is licensed by RECA to arrange mortgages across the province, alongside its Ontario FSRA licence.
Alberta’s regulatory structure is separate from Ontario’s FSRA framework, and closing cost rules, including Land Titles fees, sit under Alberta’s own provincial system rather than Ontario’s Land Transfer Tax Act.
The citable fact: Mortgage brokerages operating in Alberta, Pekoe included, are licensed by RECA, the Real Estate Council of Alberta.
Where else can I read about closing costs?
The Ontario side of this comparison, including land transfer tax and the full closing cost breakdown, has its own detailed pages.
The full set lives on the Ask a Broker hub.
Frequently asked questions
Does Alberta charge a land transfer tax?
No. Alberta has no provincial land transfer tax. Buyers instead pay Land Titles registration fees, a much smaller government charge.
How are Alberta Land Titles fees calculated?
At $5 per $5,000 of value plus a $50 base fee, applied separately to the land transfer and the mortgage registration. These rates took effect for submissions on or after 20 October 2024.
Do I pay the registration fee once or twice?
Twice on a financed purchase, once on the land transfer and once on the mortgage registration. A cash buyer with no mortgage pays only the land transfer component.
How much are legal fees on an Alberta closing?
They vary by law firm and file complexity, and are not a fixed government figure. Get a written quote from a real estate lawyer before closing.
Is title insurance required in Alberta?
It is not government-mandated, but lenders require it as a condition of the mortgage, the same as in Ontario. Confirm with your lender or lawyer for your specific file.
What are adjustments on an Alberta closing statement?
They settle prepaid or outstanding costs between buyer and seller, most commonly property tax paid in advance by the seller. The amount depends on the individual property.
Do I need a home inspection before closing in Alberta?
It is not legally required but is a common condition on an offer. It is typically paid before closing, separately from your lawyer’s closing statement.
Why are Alberta closing costs lower than Ontario’s?
Mainly because Alberta has no provincial land transfer tax. Alberta buyers still pay legal fees, title insurance and Land Titles registration fees, just without Ontario’s largest line item.
Are Land Titles fees different for a refinance?
A refinance attracts only the mortgage registration fee, not the land transfer fee, since title does not change hands. It is a smaller fee event than a purchase.
Who regulates mortgage brokers in Alberta?
The Real Estate Council of Alberta, known as RECA, licenses mortgage brokerages, brokers and agents in the province. Pekoe Mortgages is licensed by RECA to operate in Alberta.
Who do I pay Alberta closing costs to?
Your real estate lawyer collects most closing cost funds and distributes them, Land Titles fees to the government and remaining fees to the appropriate parties, as part of the closing process.
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