A new budget for Alberta was announced on March 26, 2015. Effective July 1, 2015, land title fees will be increased.
• The flat fee for mortgages, transfers and leasehold titles will increase by $25.
• The variable fee for mortgages, transfer and leasehold titles increases with the value of a property or mortgage. The fee will increase from $1 to $6 for every $5,000 in value.
• These fees are only paid when acquiring a new property and new mortgage.
How will the increased fees impact the closing costs of typical real estate transactions? Here are some examples:
1. Purchase Price $400,000.00 Mortgage amount $375,000.00
Current Land Titles fees: $255.00
New Land Titles Fees $1,080.00
2. Purchase Price $500,000.00 Mortgage Amount $475,000.00
Current Land Titles fees: $295.00
New Land Titles Fees $1,320.00
3. Purchase Price $600,000.00 Mortgage Amount $575,000.00
Current Land Titles Fees $335.00
New Land Titles Fees $1,560.00
Budget: Dramatic fee hikes coming to real estate market
While registration fee hikes bring Alberta much closer to the national average, it’s still well below what homebuyers pay in provinces with land transfer taxes. That same $500,000 property would come with an $8,000 transfer tax in Vancouver, $7,500 in Halifax, and $12,200 in Toronto, according to ratehub.ca, a financial comparison website.
Please contact us at (403) 288-0009 if you have any questions about land title fees.