Closing Costs For Alberta Homebuyers Explained

Buying your first place in Edmonton and worried about surprise fees on closing day? You’re not alone. Closing costs can feel murky when you’re trying to budget for a down payment and monthly payments. The good news: Alberta buyers avoid a big fee many provinces charge. In this guide, you’ll see exactly what you’ll likely pay, what’s required vs optional, typical Edmonton price ranges, and how to plan with confidence. Let’s dive in.

What closing costs include in Alberta

Closing costs are the one-time expenses you pay at or just before possession to complete your purchase and take title. In Alberta, you benefit because there is no provincial land transfer tax. That said, you still have several standard items to plan for.

Typical buyer costs cover:

• Legal fees and disbursements
• Land title registration and searches
• Mortgage-related fees (appraisal, default insurance if under 20% down, interest adjustments)
• Property tax and utility adjustments
• Home insurance
• Optional protections like title insurance, home inspection, and a survey/Real Property Report (RPR)

For exact government registration fees, check the current Alberta Land Titles information through Alberta Land Titles.

Required or very common costs in Edmonton

Legal fees and disbursements

You’ll hire a real estate lawyer to review contracts, perform title searches, register the transfer and mortgage, handle trust funds, and prepare your statement of adjustments. In Edmonton, total legal fees typically range from CA$800 to CA$1,800, plus disbursements of about CA$100 to CA$400 for courier, title searches, and registrations. Complex files can cost more.

Land title registration and searches

Registration covers the Transfer of Land and your mortgage. For a routine purchase, the combined registration and search charges are commonly under CA$200 to CA$400. These often show up within your lawyer’s disbursements. For current amounts and forms, refer to Alberta Land Titles.

Mortgage-related items

If you’re financing, a few items may apply:

• Appraisal. Many lenders request an appraisal. In Edmonton, a standard single-family appraisal runs about CA$300 to CA$600. Some lenders use automated valuations instead.
• Mortgage default insurance. If your down payment is under 20%, your lender will require mortgage loan insurance from CMHC or another insurer. Premiums are a percentage of the mortgage and vary with your down payment. They are often added to your mortgage. For current rules and how premiums work, review CMHC mortgage loan insurance.
• Interest adjustment. Your lender will calculate interest from the funding date until your first scheduled payment. Expect this as a line item on your statement of adjustments.

Property tax and utility adjustments

If the seller has prepaid property taxes or certain utilities past the closing date, you’ll reimburse them for the portion after possession. The amount depends on the closing date and the property’s annual tax bill. This can range from a few hundred to a few thousand dollars in some cases.

Home insurance (binder)

Lenders typically require proof of home insurance before releasing funds. Annual premiums for a detached home in Edmonton often fall between CA$900 and CA$2,000, depending on coverage and property details. Condo unit policies are usually lower. Plan for the first payment at or before closing.

Optional but smart protections

Title insurance

Title insurance is a one-time premium that protects against certain title defects, fraud, survey/RPR issues, and some registration errors. In Edmonton, it typically ranges from CA$150 to CA$500, with condos often at the lower end. It can sometimes replace the need for a new RPR, though your lender or the other party may still ask for one.

Home inspection

For resale homes, a professional inspection is strongly recommended. Expect CA$300 to CA$700 for a typical single-family inspection in Edmonton. Inspectors review visible systems and major components, helping you budget for upcoming repairs.

Survey / Real Property Report (RPR)

An up-to-date RPR confirms boundaries and structures on the lot. Costs vary widely by lot size and complexity, often CA$600 to CA$1,500. Title insurance can sometimes be used instead, but discuss the pros and cons with your lawyer and lender.

New home warranty admin

For new builds, the builder’s warranty paperwork and any transfer or registration fees are usually modest. Ask the builder to outline any administration costs in writing.

GST on new homes and the federal rebate

Alberta has no provincial sales tax, but federal GST at 5% applies to most new homes and substantially renovated homes. Resale homes are generally exempt. On a new build, GST is either included in the price or added at closing, and the builder will clarify how it’s handled.

If you intend to live in the home, you may qualify for a federal New Housing Rebate on part of the GST. Rules and thresholds change, and eligibility depends on price, intended use, and other factors. Review the details directly from the CRA at the CRA new housing rebate. Ask your lawyer or accountant to confirm your eligibility and filing steps. Some builders help with the rebate paperwork, while others do not.

Real Edmonton examples

These examples exclude your down payment and monthly mortgage payments. Your numbers may vary.

Example A: Resale condo at CA$275,000

• Lawyer + disbursements: CA$900
• Title insurance (optional): CA$175
• Appraisal (if required): CA$350
• Home inspection (optional): CA$350
• Property tax/utility adjustments: example CA$200
• Home insurance (first payment): CA$300 to CA$600
• Moving and deposits: CA$300

Estimated total at closing: CA$2,575 to CA$3,875 if you choose inspection and title insurance.

Example B: Resale single-family at CA$475,000

• Lawyer + disbursements: CA$1,200
• Title insurance: CA$250
• Home inspection: CA$450
• Appraisal: CA$400
• RPR/survey (if required): CA$800
• Property tax adjustment: example CA$500
• Home insurance (first payment): CA$900
• Moving and deposits: CA$500

Estimated total at closing: CA$4,000 to CA$5,500, depending on whether you need an RPR and the timing of adjustments.

Example C: New build at CA$550,000 (GST applies)

• GST at 5%: CA$27,500 (confirm if included in price)
• New Housing Rebate: varies by eligibility
• Lawyer + disbursements: CA$1,500
• Builder warranty/admin: varies by builder
• Mortgage insurance (if under 20% down): premium may be added to mortgage

Estimated total at closing: plan for standard closing items of about CA$2,000 to CA$4,000, plus the net GST amount after any rebate.

How to budget and avoid surprises

Build a closing cost buffer

For most resale purchases in Edmonton, set aside CA$3,000 to CA$6,000. For new builds, plan for a larger buffer to cover GST net of any rebate and potential builder admin costs.

Confirm lender requirements early

Ask your lender:

• Will you need an appraisal, and who orders it?
• Are there any lender admin fees?
• If you need mortgage default insurance, will the premium be added to the mortgage or paid up front?

For mortgage insurance guidelines, review CMHC mortgage loan insurance.

Get a written legal estimate

Ask your lawyer for an itemized quote that includes fees and disbursements. Also request a walkthrough of your statement of adjustments a few days before closing, so you can prepare certified funds or a wire on time.

Choose title insurance vs. RPR

• Title insurance is quick to arrange and usually costs less.
• An updated RPR provides a surveyor’s report on boundaries and structures. It can be helpful if you plan future exterior work.

Discuss with your lawyer and lender which route best fits your property and timeline.

Plan inspections wisely

For resale homes, a full home inspection can save money and stress. For new builds, consider a detailed pre-delivery inspection and a checklist to document any items for the builder to address.

Understand timing and adjustments

Your closing date affects property tax and utility adjustments. Ask your lawyer to explain how these are calculated based on possession date and the municipality’s billing cycle. For broader local norms and resources, you can also review buyer information through the REALTORS Association of Edmonton.

Your next step

If you want a precise closing estimate for a specific home, or you’d like to compare title insurance vs. RPR for your situation, reach out to our team. We’ll walk you through each line item, coordinate with your lender and lawyer, and help you plan a smooth possession day. Connect with The Anderson Co. to get started.

FAQs

Who pays real estate commissions in Alberta home purchases?

• Typically the seller pays the brokerage commission in Alberta; buyers usually do not pay an agent commission at closing.

Are condo and house closing costs different in Edmonton?

• Core items are similar, but condos can have condo-specific documents and often lower insurance premiums; houses may have higher inspection or RPR costs.

Can closing costs be negotiated in Edmonton purchases?

• Some items can be negotiated, such as legal fee arrangements or seller-paid credits; builders may offer promotions that cover certain closing costs.

Do I need certified funds for closing with an Alberta lawyer?

• Most law firms require a certified cheque or a wire transfer for the balance to close; confirm your lawyer’s process at least a week before possession.

Does title insurance replace hiring a real estate lawyer?

• No. Title insurance covers specific title risks, while your lawyer manages the legal closing process, document review, registrations, and disbursements.