When you’re buying or selling a home in Alberta, it’s important to plan for more than just the purchase price. Closing costs — the various fees and expenses due at the end of a real estate transaction — can add up to several thousand dollars. Knowing what to expect will help you avoid last-minute surprises and make smart financial decisions.

As a mortgage broker, I’ve helped hundreds of Albertans navigate these costs. Here’s what you should know about typical closing costs and how planning ahead can make your home purchase go more smoothly.

What Are Closing Costs?

Closing costs are the fees you pay to complete your real estate transaction. Some are due during the purchasing process, but most are due on closing day — when the property officially changes hands.

In Alberta, buyers typically pay between 2% and 5% of the home’s purchase price in closing costs, while sellers cover commissions, legal fees, and other administrative expenses.

Common Closing Costs for Alberta Buyers

Here are the most common costs you can expect when buying a home in Alberta:

Deposit: Once your offer is accepted, you’ll usually pay a deposit of $5,000–$10,000. If it’s a new build, you pay this to the builder. If it’s a resale, you pay it to the realtor. This amount is then applied toward your down payment.

Down Payment: You can choose the amount of your down payment, but the minimum is 5% of the purchase price.

Mortgage Insurance: If your down payment is under 20%, mortgage insurance through programs like CMHC is mandatory. The premium can be up to 4% of your mortgage amount. Most buyers choose to roll this amount into their mortgage, but you do have the option to pay it outright.

Legal Fees: Your lawyer will handle the title transfer, registration, and funds. Expect to pay around $1,000–$2,000.

Title Insurance: Protects you and your lender against title issues such as fraud or undisclosed liens. Usually around $300.

Property Insurance: Required by lenders before funding your mortgage. Annual premiums typically range from $500 to $1,500.

Property Appraisal: Your lender may require an appraisal to confirm the property’s value. Costs are around $400 or less.

Home Inspection: Highly recommended to identify any potential issues before you buy. Expect to pay roughly $500.

Property Taxes: If the seller has prepaid property taxes, you’ll reimburse them for the period after possession — usually a few hundred to a few thousand dollars.

Land Transfer Fees: Alberta doesn’t charge a traditional land transfer tax, but you’ll pay small registration fees — usually a few hundred dollars total.

GST on New Builds: GST applies to new homes in Alberta, but not resales. You may qualify for a partial rebate if your home costs under $450,000.

New Home Warranty: If you’re buying a new build, you’ll receive Alberta’s mandatory home warranty, typically around $2,000.

Closing Costs for Sellers in Alberta

Sellers have fewer individual fees but often pay the larger costs, including:

Realtor Commissions: Most Alberta real estate agents charge 7% on the first $100,000 and 3% on the remaining balance, split between the buyer’s and seller’s agents.

Legal Fees: Sellers also pay legal fees, typically $1,000–$2,000, to prepare sale documents and discharge the mortgage.

Mortgage Penalties: If you’re breaking a mortgage early, your lender may charge a penalty — sometimes several thousand dollars. Always check your mortgage terms before listing.

Real Property Report (RPR): An updated survey of your property, required for most resale transactions. Costs around $600.

Appraisal (Optional): If you’d like an independent valuation before listing, a professional appraisal costs about $400 or less.

Alberta’s Advantage

Alberta homebuyers enjoy some of the lowest closing costs in Canada. Unlike Ontario or B.C., we don’t pay a hefty land transfer tax — and that alone can save you thousands. For example, a $500,000 home in Alberta might cost $12,000 in total closing costs, while the same purchase in Toronto could cost nearly $19,000.

That’s just one of the reasons why Alberta remains one of the most affordable places in Canada to own a home.

Why Working with a Mortgage Broker Matters

Understanding closing costs is only part of the picture. What’s most important is knowing how to plan for them strategically.

As your mortgage broker, I help you:

• Budget realistically for closing costs so you’re never caught off guard

• Access lender incentives that can offset certain fees

• Structure your mortgage to minimize or avoid penalties when you move or refinance

• Compare insurance and legal fee options to save hundreds or even thousands of dollars

A few smart decisions early in the process can make a big difference in how much you pay on closing day.

Plan Ahead and Buy with Confidence

Whether you’re buying your first home, moving up, or selling, the key to a smooth closing is preparation. Knowing what to expect helps you focus on what matters most — getting the right home and the right mortgage for your future.

If you’re planning to buy in 2026, now is the perfect time to review your budget and understand your options. Let’s make sure your next move is a confident one. Reach out to me, Josh Tagg at Mortgages for Less, for expert mortgage advice and a clear plan for your home purchase.