Buying or selling a home in Calgary and wondering what the final bill looks like beyond the price? You’re not alone. Closing costs can feel murky, especially if you’re comparing Alberta to other provinces. The good news: Calgary buyers and sellers have a few cost advantages, and most fees are predictable if you plan ahead. In this guide, you’ll learn what you’ll likely pay, what’s optional, how timing works, and where to double‑check amounts before you commit. Let’s dive in.
Alberta rules at a glance
Alberta stands out on a few key points that shape your budget:
- No provincial land transfer tax. Alberta does not charge a land transfer tax to buyers. You will pay Land Titles registration fees to register the transfer and any mortgage, which are set by the province. For current rules and fee details, review Alberta’s guidance on Land Titles and registrations.
- No provincial sales tax (PST). You only consider the federal GST (5%). GST generally does not apply to resale homes, but it typically applies to most new‑build purchases and some substantial renovations. For eligibility and rebates, see the Government of Canada’s overview of GST on new housing and rebates.
- Mortgage default insurance on high‑ratio loans. If your down payment is under 20%, lenders require mortgage loan insurance. Premiums vary by down payment and insurer and are usually added to the mortgage. Learn the basics from CMHC mortgage loan insurance.
Buyer closing costs in Calgary
Down payment and mortgage items
Your down payment drives your mortgage amount and whether you need mortgage default insurance. If you put less than 20% down, your lender will arrange insurance through CMHC or another approved insurer. The premium is a percentage of your mortgage and is commonly added to your loan, though you can pay it upfront.
Ask your lender about any application or administration fees. Some lenders also require an appraisal and will pass that cost to you.
Deposit
When your offer is accepted, you typically pay a deposit to the seller’s brokerage trust account. This amount becomes part of your purchase price and reduces your cash needed at closing. If the deal falls through under a valid condition, the deposit is usually returned, subject to the contract terms.
Inspections and appraisal
A general home inspection is optional but strongly recommended for resale homes. Depending on the property, you might add specialist inspections like sewer scope, radon, or pest. Most inspections cost a few hundred dollars each, depending on size and scope.
If your lender requires an appraisal, expect a separate fee, also often a few hundred dollars.
Title insurance and survey/RPR
Many buyers purchase title insurance as a one‑time cost to protect against certain title issues or fraud. Some lenders also require a Real Property Report (RPR) or survey for detached homes, especially older properties. Your lawyer and lender will advise which path is appropriate for your purchase.
Legal fees and Land Titles fees
Your real estate lawyer handles the title search, mortgage and transfer documents, and the statement of adjustments. Legal fees vary with complexity and disbursements. The provincial Land Titles registration fees are paid at closing to register the transfer and any mortgage. To estimate legal services and find local counsel, consult the Law Society of Alberta. For provincial registration requirements, see Alberta Land Titles.
GST on new builds
Buying from a builder? GST (5%) generally applies. There are possible federal rebates for owner‑occupied homes under certain thresholds. Review the CRA’s guidance on GST/HST new housing rebates and confirm how your builder prices GST.
Adjustments at closing
Your lawyer will prorate property taxes, utilities, and condo fees to the closing date. If the seller prepaid part of the year, you’ll reimburse your share on the statement of adjustments. To understand the local billing cycle, see the City’s pages for Calgary property taxes and Calgary utilities and final billing.
Moving and first‑week costs
Budget for movers, utility hook‑ups and deposits, mail forwarding, and any immediate repairs or upgrades you want to tackle before move‑in.
Condo buyer notes
If you’re buying a condominium, plan for:
- Condo document review. Your lawyer may charge a separate review fee for bylaws, financials, reserve fund studies, and meeting minutes. These documents reveal building health and any pending special assessments.
- Condo corporation document fees. Many condominium corporations charge a fee to provide official records. Who pays can be negotiated.
Seller closing costs in Calgary
Realtor commission
Commission is negotiated with your listing brokerage and is typically a percentage of the sale price or a flat fee, shared between the listing and buyer’s brokerages. Because practices vary, ask for a written commission schedule and examples of net proceeds at different sale prices. For consumer context, visit the Calgary Real Estate Board.
Legal fees and disbursements
Your lawyer prepares the statement of adjustments, releases your mortgage, and handles closing funds. Fees generally align with buyer‑side costs and include disbursements. Your lender may also charge a mortgage discharge fee.
Mortgage payout and penalties
If you break your term early, your lender may charge a prepayment penalty. Request a payout statement as soon as you list so you can plan your net proceeds accurately. Penalties can change with interest rates, so timing matters.
Property condition and presentation
Optional costs like repairs, paint, cleaning, staging, and minor upgrades can improve marketability and your sale price. Discuss return‑on‑investment items with your agent before spending.
Taxes, utilities, and condo fees
At closing, prepaid items are credited back to you up to the closing date. Ensure your utility accounts are up to date and scheduled for final reads.
Condo seller notes
Condominium corporations may charge for status certificates, move‑out elevator bookings, or deposits. Clear any outstanding condo fees before closing to avoid delays.
Capital gains basics
If the home was your principal residence for all the years you owned it, the principal residence exemption generally shields you from capital gains tax. If you rented part of the property or it was not your principal residence for a period, speak with a tax professional for guidance.
Budgeting checklist and ranges
Use this as a starting point. Actual costs vary by property, provider, and timing. Get quotes early.
Buyer checklist
- Deposit at offer acceptance.
- Down payment at closing.
- Mortgage default insurance if under 20% down (premium typically added to mortgage; confirm with your lender and CMHC).
- Lender fees and appraisal if required.
- Home inspection(s) and any specialist inspections.
- Title insurance and/or Real Property Report as required.
- Legal fees and disbursements.
- Land Titles registration fees (provincial).
- GST if buying new construction; investigate rebates via the CRA.
- Property tax, utility, and condo fee adjustments on the statement of adjustments.
- Moving costs, utility deposits, immediate repairs.
Seller checklist
- Realtor commission (negotiated; request written examples of net proceeds).
- Legal fees and disbursements.
- Mortgage payout and possible prepayment penalty (request early from lender).
- Staging, repairs, cleaning, and marketing extras.
- Condo administration or move‑out fees; any outstanding condo fees.
- Property tax, utility, and condo fee adjustments to closing date.
- Tax considerations if not fully principal residence.
A simple way to plan
Create two columns in your budget:
- Mandatory/contractual: deposit, down payment, mortgage insurance (if applicable), legal fees, Land Titles registration fees, realtor commission, mortgage payout items.
- Optional/variable: inspections, title insurance, RPR/survey, staging, cleaning, minor repairs, moving services.
Confirm amounts with quotes from your lender, lawyer, and inspector before you waive conditions so your final cash‑to‑close has no surprises.
Common pitfalls to avoid
- Skipping pre‑approval, which can derail financing timelines and costs.
- Forgetting mortgage default insurance when putting less than 20% down.
- Waiting too long to request a mortgage payout statement if you’re selling.
- Overlooking condo documents or not having a lawyer review them.
- Misreading registration timing or missing documents, which can delay closing.
Your next steps
- Get pre‑approved and ask your lender for a full estimate of fees, appraisal needs, and timing. Review insurance basics with CMHC mortgage loan insurance.
- Hire a local real estate lawyer early for a fee quote, document list, and closing timeline. Start with the Law Society of Alberta.
- Check provincial registration fees and what gets filed on closing with Alberta Land Titles.
- If buying new, confirm GST and potential rebates through the CRA’s housing resources.
- Review property tax and utility billing schedules to forecast adjustments using the City of Calgary.
- If you’re selling, request a commission schedule and net‑proceeds examples, and see consumer info from the Calgary Real Estate Board.
Ready to map your numbers to a real property in your price range or see your net proceeds under different sale scenarios? Reach out for a clear, local breakdown tailored to your timeline and goals with Natherine Leger.
FAQs
Who pays land transfer tax in Alberta?
- Alberta does not charge a provincial land transfer tax; buyers typically pay provincial Land Titles registration fees at closing.
Does GST apply to resale homes in Calgary?
- Generally no; GST usually applies to new‑build purchases from a builder, while resale homes are typically GST‑exempt.
When do legal and Land Titles fees get paid?
- Your lawyer collects and pays these at closing and shows them on the statement of adjustments with your final cash‑to‑close.
How are property taxes and condo fees prorated?
- They are prorated to the closing date, crediting the seller for any prepaid amounts and charging the buyer for the period of ownership after closing.
What should sellers know about mortgage penalties?
- Request a mortgage payout statement early to estimate any prepayment penalty and discharge fees so you can plan your net proceeds.
Are realtor commissions fixed in Calgary?
- No; commissions are negotiable. Ask for a written commission schedule and net‑proceeds examples from your listing brokerage.
