Real Estate Transfer Fees
There are many different costs that buyers may incur when purchasing a home – property inspections, appraisals, legal fees and Real Estate transfer fees among others. Well, as of July 1st, expect to see buyers costs rise as transfer fees are set to quadruple.
Currently, Alberta’s land transfer fees are among the lowest in Canada. Presently sitting at about 0.02% of the cost of the purchase, fees are now set to rise to 0.12%. So how much extra can you expect to pay?
Assuming a $500,000 home with a $400,000 mortgage:
Land title registration:
Prior to July 1st 2015 – $150 After July 1st 2015 – $675
Mortgage Registration;
Prior to July 1st 2015 – $130 After July 1st 2015 – $555
So, an average home purchase in the city of Edmonton after July 1st 2015 will cost about $1230 in registration fees – almost $1000 more than it was previously. Not that it makes it an easier pill to swallow, but even with this substantial hike, Albertas fees still remain significantly lower than other big markets such as Vancouver and Toronto.
So if you were thinking of buying a home in the near future it might be a good idea to start looking. A closing date of June.30 or earlier will save you $1000.
