Closing Costs When Buying in Calgary

The Deposit Comes First — and It Is Separate Money

The deposit is paid when your offer is accepted or your conditions come off, depending on how the offer is written. It is held in trust, it is credited to your purchase at closing, and it counts toward your down payment — so it is not an extra cost.

It is, however, early cash. You need liquid money weeks before possession, which catches buyers whose savings sit in something that matures next month. Deposit vs. down payment in Alberta.

What Alberta Charges Instead of a Transfer Tax

With no land transfer tax, the government charge at closing is Land Titles registration. It is a base fee of $50 plus $5 for every $5,000 of value, charged on the transfer of land and again on the mortgage registration. Your lawyer collects it and shows it on your statement.

Buying New Construction? GST Applies

Resale homes do not carry GST. New homes do: 5% federal GST applies to a newly built home, and rebates may reduce it depending on the price, whether you will live there and whether you are a first-time buyer. Always confirm in writing whether a builder’s price includes GST or adds it, and whether any rebate has been assigned to the builder in that price. The first-time buyer GST rebate.

Buying a Condo? Two Documents to Budget For

The estoppel certificate confirms the unit’s fee status and whether anything is owed or pending. In Alberta a corporation has 10 days to provide one, and the charge is capped at $200, plus up to $100 if you need it within three days. Separately, many buyers pay for a professional condo document review during the condition period.

Adjustments: The Line That Surprises People

Property taxes, condo fees and some utilities are split between you and the seller as of the possession date. If the seller prepaid the year’s taxes, you reimburse the balance; if they did not, the credit can run the other way. The figure is not knowable until your lawyer prepares the statement. The statement of adjustments, explained.

The Costs After the Keys

• Home insurance must be in place for possession day, not after it. A condo adds move-in fees and an elevator booking.
• Moving, which costs more at month-end and in winter, when everyone else in Calgary is moving too.
• The first fixes: new locks, a furnace service, and whatever the inspection flagged as “soon”.
• Window coverings and furniture for rooms you did not previously have.

Keep a cash cushion after possession rather than pushing every dollar into the down payment. A slightly smaller down payment with money left over usually makes for a calmer first year.

The Cash You Need, in the Order You Need It

Buyers ask how much cash they need as though it were one number on one day. It is four numbers on four dates, and the sequence is what catches people out.

1. On acceptance — the deposit. Days, not weeks, and in certified funds. It is credited to your purchase later, so it is not an extra cost, but it has to be liquid first.
2. During conditions — the small cash costs. A home inspection, an appraisal where the lender wants one, condo documents and any professional review. These are paid out of pocket while the deal could still fall apart, which is exactly why they feel expensive.
3. At closing — the balance. The rest of your down payment plus legal fees, Land Titles registration, the property tax adjustment and your first year of home insurance, all through your lawyer. Your down payment funds cannot also be your closing-cost funds.
4. After possession — the part nobody budgets. Movers, utility deposits, locks, blinds, a furnace service and whatever the inspection flagged as “soon”.

How much should be left over after the down payment? We deliberately do not publish a percentage, because the right cushion depends on the house, not on a formula. A better test: could you absorb the possession-day list and one unwelcome repair without borrowing? On a forty-year-old house that is a larger number than on a two-year-old condo.

If you are close to the line, an FHSA or the Home Buyers’ Plan may free up room. And decide deliberately — a slightly smaller down payment with money left over usually makes for a calmer first year than the reverse.