As of October 20, 2024, homebuyers in Alberta saw a change in their closing costs due to a new Land Titles Registration Levy introduced in Budget 2024. If you’re in the market to buy a property, this is something you’ll want to be aware of, as it affects the fees associated with land transfers and mortgage registrations.

What Changed?

Previously, Alberta’s land transfer and mortgage registration fees were calculated using a variable system, which included a base fee plus an additional amount based on the property or mortgage value. However, as of October 20, the structure was replaced by a new flat levy: $5.00 for every $5,000 of the property’s or mortgage’s value, plus a $50 flat fee.

Here’s a quick breakdown of the changes:

• Before October 20, 2024:
  • Land transfer fees: $50 + $2.00 per $5,000 of property value.
  • Mortgage registration fees: $50 + $1.50 per $5,000 of mortgage value.
• After October 20, 2024:
  • A flat levy of $5.00 per $5,000 (for both land transfers and mortgage registrations), plus a $50 flat fee.

What Does This Mean for Buyers?

Let’s look at a real-world example: If you’re buying a $750,000 home with a $650,000 mortgage, your previous Land Titles Office fees would have been around $595. Now that the new levy has come into effect, those fees jumped to $1,500 – more than double the old cost! This increase could catch buyers off guard, so it’s important to factor this into your budget.

Want to Know the Exact Fees?

While the above example gives you an idea of the changes, the exact costs will depend on your specific transaction, and your lawyer will be the best person to give you an accurate fee calculation. It’s also important to note that while the cost has increased, Alberta levies still remain the lowest in Canada.

It’s important to stay on top of the ever-changing real estate landscape, now is a good time to get in touch if you have any questions or need assistance with your upcoming home purchase. Let’s make sure you’re prepared for everything that comes with buying a home! Don’t forget to connect with my on Facebook and Google for the latest in real estate news.