So, you’ve found your dream home, saved your down payment, and you’re ready to make the leap into homeownership — congratulations! But before you get the keys in hand, there’s one final financial hurdle you need to understand: closing costs.

For many first-time buyers in Alberta, closing costs can come as a surprise. These are the legal, administrative, and miscellaneous fees you pay when your home purchase is finalized — essentially, everything required to officially close the deal.

Let’s break down what you need to know, how much to budget, and how to prepare.

What Are Closing Costs?

Closing costs are the fees and expenses due at the end of your home buying journey, separate from your down payment. In Alberta, buyers are fortunate because some costs (like land transfer taxes) are lower than in other provinces, but they still add up.

Common Closing Costs in Alberta

Here are the most typical costs you can expect when buying your first home:

1. Legal Fees

You’ll need a real estate lawyer to handle the transfer of the title, register the mortgage, and complete the paperwork.
Estimated cost: $1,200 – $2,000 (including disbursements)

2. Title Insurance

This protects you against potential issues with the property’s title, such as fraud or unpaid taxes from a previous owner.
Estimated cost: $250 – $400

3. Home Inspection (Optional, but Strongly Recommended)

Before you finalize your purchase, get the home professionally inspected to uncover any hidden issues.
Estimated cost: $400 – $600

4. Property Appraisal

If you’re putting less than 20% down or using an insured mortgage, your lender may require a third-party appraisal.
Estimated cost: $300 – $500 (sometimes covered by your lender)

5. Adjustment Costs

If the seller has prepaid property taxes, condo fees, or utilities, you’ll need to reimburse them for your share from the closing date onward.
Estimated cost: Varies depending on date of possession

6. Mortgage Default Insurance (CMHC Insurance)

If your down payment is less than 20%, this insurance is mandatory. While it’s usually added to your mortgage, the PST (provincial sales tax on the premium) must be paid upfront at closing.
Estimated cost: Varies — PST on a $10,000 premium would be $500 in Alberta (5%)

7. Moving Costs and Utility Hookups

While not technically part of the legal closing process, don’t forget to budget for moving trucks, utility connection fees, and basic home essentials.
Estimated cost: $500 – $1,500+

How Much Should You Budget?

As a general rule of thumb, set aside 1.5% to 4% of your purchase price for closing costs. On a $400,000 home, that means budgeting around $6,000 to $16,000.

Keep in mind that some of these costs can be paid over time or negotiated, while others are due upfront.

Tip for First-Time Buyers

Did you know that Alberta first-time home buyers may qualify for certain rebates or incentives that can reduce overall costs? Programs like the First-Time Home Buyer Incentive or RRSP Home Buyers’ Plan can help make ownership more affordable — and I’m always happy to walk you through those options.

Ready to Get Started?

Navigating your first home purchase can feel overwhelming, but you don’t have to do it alone. As an Alberta mortgage broker, I’m here to break down the process, connect you with trusted lawyers and inspectors, and help you understand your costs before you commit.

If you’re thinking about buying your first home, let’s talk. I’ll help you build a realistic budget — closing costs and all — so you can make confident decisions.