What Does It Cost to Refinance a Mortgage in Alberta?
Refinancing in Alberta comes with a handful of real costs: an appraisal, legal fees, sometimes a discharge fee, sometimes a prepayment penalty, and a Land Titles registration fee. Alberta charges no provincial land transfer tax on any transaction. Here is every line item, what is confirmed, and what still needs a lender quote.
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What are the typical cost line items on an Alberta refinance?
A refinance can involve an appraisal fee, legal fees, a discharge fee from your existing lender, a prepayment penalty if you break your term early, title insurance, and the Alberta Land Titles registration fee. Not every item applies to every file, and the dollar amounts vary by lender, law firm, and property.
The one item Alberta refinances never carry is provincial land transfer tax, because Alberta does not charge one on any real estate transaction, purchase or refinance.
| Item | Applies to a refinance? | How it’s set |
|---|---|---|
| Appraisal fee | Usually | Lender’s appraiser, quoted per file |
| Legal fees | Yes | Your real estate lawyer’s own rate |
| Discharge fee | Only if switching lenders | Set by your existing lender |
| Prepayment penalty | Only if breaking your term early | Your existing lender’s formula |
| Title insurance | Often required | Title insurer, via your lawyer |
| Land Titles registration fee | Yes | Set by the Government of Alberta |
| Alberta provincial land transfer tax | No such tax | Does not exist in Alberta |
The citable fact: An Alberta refinance can involve an appraisal fee, legal fees, a possible discharge fee and prepayment penalty, title insurance, and a Land Titles registration fee, but never a provincial land transfer tax.
Does Alberta charge land transfer tax on a refinance?
No. Alberta has no provincial land transfer tax at all, on a purchase or a refinance. What Alberta does charge is a Land Titles registration fee tied to the value of the mortgage being registered, which is a smaller and different kind of cost.
This is the clearest cost advantage Alberta has over a province that charges provincial land transfer tax on property transactions. It does not eliminate refinance costs entirely, since the registration fee, appraisal, and legal costs still apply.
The citable fact: Alberta charges no provincial land transfer tax on a mortgage refinance, unlike provinces that levy one on real estate transactions.
What is the Alberta Land Titles registration fee on a refinance?
Since submissions received on or after 20 October 2024, Alberta charges $5 per $5,000 of value plus a $50 base fee on a mortgage registration. Because a refinance does not transfer ownership, only the mortgage registration fee applies, not a separate land transfer fee.
| Component | Fee |
|---|---|
| Base fee | $50, on the mortgage registration |
| Variable fee | $5 per $5,000 of the mortgage value |
Show the math: illustrative Land Titles fee on a $500,000 mortgage
This example is illustrative only, built from the confirmed fee schedule, and is not a quote. The exact figure on your file depends on the registered mortgage amount.
The citable fact: Alberta’s Land Titles mortgage registration fee is $5 per $5,000 of the mortgage amount plus a $50 base fee, effective for submissions received on or after 20 October 2024.
What does an appraisal cost in Alberta?
A residential appraisal typically runs $300 to $600, and more where the property or its access makes the work harder. A boat-access property, for example, can cost considerably more. Alberta and Ontario sit in a similar range. Confirm the figure for your own file, since the appraiser and lender set it case by case.
A refinance almost always needs one, because the lender is establishing what the property is worth today rather than relying on a purchase price.
The citable fact: A residential appraisal on an Alberta refinance typically costs $300 to $600, with unusual access or property types costing more, and a refinance generally requires one because the lender needs current value rather than a purchase price.
What legal fees should I expect on a refinance?
Legal fees for a refinance are set by the real estate lawyer or law firm you choose, and typically cover title review, registering the new mortgage, discharging any old mortgage, and disbursing funds. Firms in Alberta quote this work differently, so it is worth asking for a fee estimate before you commit to one.
Legal work on a refinance averages $1,500 to $3,000, and it can come in above a purchase rather than below it. The driver is disbursements: payouts to existing lenders and whatever registrations and searches the new lender requires. Ask for a quote that separates the fee from the disbursements.
Legal work on a refinance is a separate step from the lending process itself, which is covered in full on our page about how to refinance a mortgage in Alberta.
The citable fact: Legal fees on an Alberta refinance are set by the individual law firm handling the file, not by a fixed provincial rate.
Is there a fee to discharge my existing mortgage?
If you are switching to a new lender, your existing lender typically charges a fee to discharge and remove its mortgage from title, separate from the new lender’s registration fee. The exact amount is set by your current lender and shown on your mortgage statement or payout statement.
Expect roughly $300 to $500, depending on the lender. Banks and monoline lenders sit in a similar range, and Alberta and Ontario are no different from each other on this. Your payout statement shows the exact figure for your own mortgage.
The citable fact: A discharge fee of roughly $300 to $500, set by your existing lender, typically applies only when you switch lenders on a refinance, not when you stay with the same one.
What is a prepayment penalty, and when would I pay one?
A prepayment penalty is a charge your existing lender applies when you pay off or replace your mortgage before its term matures. It only applies if you are breaking your current term early to refinance; if your term has already matured, there is nothing to break.
On a fixed-rate mortgage, lenders generally charge the greater of three months’ interest or an interest rate differential, a comparison between your contract rate and the lender’s current rate for the time left on your term. On a variable-rate mortgage, the penalty is generally three months’ interest only. Each lender writes its own version into the mortgage contract, so get the exact figure from your current lender’s payout statement rather than estimating it.
The citable fact: A prepayment penalty applies to an Alberta refinance only when you break an existing term before it matures, and the amount is calculated by your current lender.
Do I need title insurance to refinance, and what does it cost?
Many lenders require a title insurance policy on a refinance to protect against title defects and registration errors, arranged through your lawyer. The premium is a one-time cost set by the title insurer, not a fixed provincial rate.
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 on an Alberta refinance, where required by the lender, is priced by the title insurer as a one-time premium.
Will I pay a broker or lender fee to refinance?
On a prime mortgage, the lender compensates the brokerage and you pay no fee. On an alternative or private mortgage, a lender or broker fee may apply, and any such fee must be disclosed to you in writing before you sign.
Alberta mortgage brokerages are licensed by RECA. Ask your broker directly how they are compensated on your specific file, and get the answer in writing before you sign anything.
The citable fact: On a prime mortgage refinance, the lender pays the brokerage and the borrower pays no fee, while alternative and private files may carry a disclosed lender or broker fee.
Can refinance costs be added to the new mortgage instead of paid upfront?
Some lenders allow certain refinance costs to be added to the new mortgage balance rather than paid in cash at closing, but this depends on the lender and the loan-to-value room available. It is not guaranteed on every file, and the confirmed rule on mortgage default insurance premiums is different from this general practice.
Ask your broker to confirm whether your specific lender allows it, and how much loan-to-value room your file actually has, before you assume any closing cost can be rolled in.
The citable fact: Whether refinance costs can be rolled into the new mortgage balance instead of paid upfront depends on the individual lender and the available loan-to-value room.
Does refinancing cost more for a rental or investment property?
The core cost items, appraisal, legal fees, and the Land Titles registration fee, apply the same way regardless of whether the property is owner-occupied or a rental. Some lenders charge higher fees or require additional underwriting steps for non-owner-occupied properties, which can add to the total.
Ask your broker early whether your specific lender treats the property differently, since the extra underwriting on a rental can affect timing as much as cost.
The citable fact: The Land Titles registration fee and legal costs on an Alberta refinance apply the same way to a rental property as to an owner-occupied home, though some lenders add extra underwriting steps for rentals.
Are refinance costs different if I switch lenders versus staying with my current one?
Switching lenders adds a discharge fee from your old lender, and sometimes a second set of legal steps to pay out and remove the old mortgage. Staying with your current lender can avoid the discharge fee, though you still pay the appraisal, any applicable legal fees, and the Land Titles registration fee.
For the full process of what happens at each stage, including the lawyer’s role, see our page on how to refinance a mortgage in Alberta.
The citable fact: Switching lenders on an Alberta refinance typically adds a discharge fee that staying with your current lender avoids.
Looking at other refinance questions?
This page covers cost line items only. The other three pages in this set go deeper on process, equity, and cash-out rules.
- How to refinance a mortgage in Alberta
- Taking equity out of an Alberta home
- Cash-out refinance rules in Alberta
The full set lives on the Ask a Broker hub.
Frequently asked questions
Is the Alberta Land Titles fee the same for a purchase and a refinance?
A purchase involves both a transfer of land fee and a mortgage registration fee, each at $5 per $5,000 of value plus a $50 base fee. A refinance involves only the mortgage registration fee, since ownership does not change.
Do I pay appraisal costs even if I don’t proceed with the refinance?
This depends on the lender and the appraiser’s own policy. Ask your lender or broker directly before ordering the appraisal.
Can I negotiate legal fees on a refinance?
Legal fees are set by the individual law firm, and it is reasonable to call more than one firm for a quote before choosing. Some firms offer flat-fee refinance packages.
Is GST or PST charged on refinance costs in Alberta?
Alberta has no provincial sales tax, so PST does not apply to refinance costs in the province. Whether GST applies to specific professional fees like legal or appraisal work is a tax question best confirmed with the service provider or an accountant.
Does my current lender waive the discharge fee if I stay with them?
Usually yes, because there is no old mortgage to discharge if you are refinancing within the same lender. Confirm this directly with your lender, since practices vary.
Is a prepayment penalty tax-deductible?
This is a tax question that depends on your specific circumstances, including whether the property is your principal residence or a rental. Speak with an accountant rather than relying on a general answer.
How do I get an exact cost quote before I commit?
Ask your broker or lender for a written breakdown of appraisal, legal, discharge, and any penalty costs specific to your file before signing. A real estate lawyer can also provide a legal fee estimate in advance.
Do private or alternative lenders charge higher fees to refinance?
Alternative and private lenders may charge a lender or broker fee that prime lenders do not, and this must be disclosed to you in writing before you sign. Ask for the full fee schedule before committing to an alternative file.
Is the Land Titles fee paid by me or the lender?
The borrower typically pays the Land Titles registration fee as part of closing costs, usually through the lawyer’s trust account. It is not absorbed by the lender.
Will refinancing costs show up on my mortgage statement?
The Land Titles fee and legal costs are usually settled at closing through your lawyer, not added line by line to your ongoing mortgage statement. Any costs rolled into the mortgage balance would appear in the total principal amount.
Is the broker chat on this page a bot?
No. It connects you to a real, licensed Pekoe broker during business hours, and to a direct reply outside them. There is no AI persona standing in for an advisor.
Does a HELOC have different costs than a full refinance?
A HELOC can involve similar legal and registration costs to set up, though some lenders offer lower-cost HELOC setups than a full refinance. The mechanics of a HELOC versus a refinance are covered on our page about taking equity out of an Alberta home.
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