Closing costs when you buy a home in Edmonton, and how much cash to set aside

Alberta has no land transfer tax. That is the single biggest reason closing costs in Edmonton are lower than in Ontario or British Columbia. What you pay instead is a short list of registration fees, professional fees and adjustments that usually add up to a few thousand dollars on top of your down payment. Your lender will want to see that money in your account before closing, so it pays to know the number early.

The government fees: Land Titles registration

When you buy, your lawyer registers two documents at the Alberta Land Titles Office: the transfer of the property into your name, and your mortgage. Each one carries a fee of $50 plus $5 for every $5,000 of value, or part of $5,000. That rate has been in force since October 20, 2024, when the province raised it from $2 per $5,000 on transfers and $1.50 per $5,000 on mortgages.

On a $450,000 home with 10% down, that works out to:

• Transfer: $50 plus $5 × 90 = $500
• Mortgage: about $417,555 once default insurance is added (see below), so $50 plus $5 × 84 = $470

Your lawyer collects both fees and pays them on your behalf. They show up on the statement of adjustments, not as a separate bill.

Mortgage default insurance is not a cash cost

If you put down less than 20%, your mortgage has to be insured. CMHC's standard premiums are 2.80% of the loan with at least 15% down, 3.10% with at least 10% down, and 4.00% with 5% to 9.99% down. On the $450,000 example, that is about $12,555.

Two things buyers often miss:

• The premium is added to your mortgage, not paid on closing day. You pay it off over time with interest.
• In provinces with a sales tax on insurance, that tax is due in cash at closing. Alberta has no provincial sales tax, so Edmonton buyers do not have this cost.

The professional fees

These vary, so get quotes. Our closing cost estimator starts with placeholder amounts you can replace with your own.

• Legal fees and disbursements. Your real estate lawyer reviews the contract, does the title search, registers the documents and moves the money. Ask whether the quote includes disbursements (searches, couriers, registrations).
• Title insurance. Most lenders require a lender's policy. Ask your lawyer whether an owner's policy is included too. If the seller is offering title insurance instead of a Real Property Report, read what that trade means.
• Home inspection. Paid when you do the inspection, usually during the conditions period, so it comes out of pocket before closing.
• Condo document review. On a condo, someone qualified should read the bylaws, minutes, budget, reserve fund study and estoppel certificate before you firm up.
• Appraisal. Some lenders charge for it; many absorb it. Ask your lender.

The adjustments

The statement of adjustments squares up costs the seller has already paid, or still owes, for the time you will own the home.

• Property tax. Edmonton bills property tax once a year, due June 30. If you close after the seller has paid the full year, you repay them for the days from your possession date to December 31. If you close earlier in the year, the seller credits you for the days they owned it. Homeowners on the City's monthly payment plan are adjusted differently, and your lawyer handles it.
• Condo fees. If the seller has prepaid the month you take possession, you repay the days that are yours.
• Interest adjustment. Some lenders charge interest from closing day to the start of your first regular payment period. Ask whether yours does.

New builds are different

A home inspection is usually not part of a new-build purchase, and GST applies to the price unless the builder has included it. Depending on the price and whether you are a first-time buyer, the federal new housing rebate or the first-time home buyers' GST rebate can cut that bill significantly. Read our guide to the first-time buyers' GST rebate and try the GST rebate calculator. Check the purchase agreement for any other adjustments the builder adds on closing.

What to set aside

Run your own numbers in the closing cost estimator. It calculates the Land Titles fees from your price and down payment, and lets you replace every other line with the quotes you get. With the estimator's placeholder amounts, the $450,000 example comes to about $4,100 in closing costs, or roughly 1% of the price, and about $5,600 once you add $1,500 for moving.

Then add a cushion. Utility hook-ups, home insurance (your lender will need proof before closing) and the first week of small fixes all land in the same month.

If you are planning a purchase in Edmonton and want a closing-cost estimate built on real quotes, send us the price range and the type of home. We will walk you through it.

Sources

• Bennett Jones, Increases to Alberta land transfer and mortgage registration fees (October 2024): bennettjones.com
• CMHC, Mortgage loan insurance premiums: cmhc-schl.gc.ca
• City of Edmonton, property tax notices and the June 30 due date (2024 coverage): ctvnews.ca