Alberta Real Estate Fees Are About to Jump

If you’re planning on buying or selling real estate in Alberta, you may want to wrap up those transactions soon. Starting on October 20, 2024, the fees for land title transfers and mortgage registrations in Alberta are set to rise significantly. While these changes were included in the provincial budget earlier this year, you may not have heard much about it—there hasn't been a prominent public announcement, leaving many to find out through other channels.

What’s Changing?

Currently, alberta land titles transfer fees include a $50 flat fee and a $2 variable fee for every $5,000 of property value. Mortgage registration fees are similarly structured with a $50 flat fee and a $1.50 variable fee per $5,000 of mortgage value. Starting in October, the variable fee will jump to $5 per $5,000 for both land title transfers and mortgage registrations.

For example, on a $450,000 home with a $405,000 mortgage, the current fees total around $401.50. Under the new system, those fees will more than double to approximately $955.

How Will This Impact You?

For buyers and sellers, this change means higher closing costs. If you’re in the middle of a real estate transaction, it may be worth speeding up your timeline. Any documents submitted before October 20 will still be processed under the current fee structure. However, any submissions after that date will be subject to the new, higher fees.

Why the Fee Hike?

The increase is part of Alberta’s 2024-2027 fiscal plan, aimed at updating and standardizing fees. Despite the rise, Alberta’s land title fees will still remain lower than those in many other provinces, which also impose land transfer taxes on top of registration fees.

What’s Next?

If you're planning a real estate transaction, reach out to your mortgage broker or lawyer to ensure everything is submitted on time. This way, you can avoid the new fee structure and save potentially significant amounts of money.

While information on these changes hasn’t been easy to come by, it’s important to stay informed and act quickly if you want to lock in the current rates before the new fees take effect.

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