Picture two buyers closing on the same $600,000 home next month. One's in Calgary. The other's in Toronto. The Calgary buyer hands their lawyer a cheque for closing costs of around $5,000. The Toronto buyer writes a separate cheque — just for land transfer tax — of nearly $17,000. Same house, same price, and that one tax is more than triple the Calgary buyer's entire closing bill.
That gap is the most important thing to understand about closing costs in Calgary. They're real, they're easy to overlook, and thanks to one quirk of Alberta law, they're a fraction of what buyers pay almost anywhere else in Canada. After helping clients close on more than 100 homes across the city, I've watched too many people save diligently for a down payment and then get caught flat-footed by the few thousand dollars due at possession. Let's make sure that's not you.
At a glance: your Calgary closing-cost budget
Here's the short version of what to set aside, on top of your down payment, for a typical resale purchase:
Bottom line: budget somewhere in the range of 1.5% to 4% of the purchase price to be safe — though in Calgary, many resale buyers land closer to the low end. Here's why, and where every dollar goes.
Closing costs and your down payment are not the same thing
This trips up first-time buyers constantly, so let me separate the two cleanly.
Your down payment is your stake in the home — the cash that comes off the purchase price. Your closing costs are the fees, taxes, and adjustments required to transfer ownership and register your mortgage, due at or around possession and paid on top of the down payment.
Save $30,000 for a down payment on a $600,000 home and forget closing costs, and you could be short $5,000 the week you take possession — not something you want to discover at the lawyer's office. If you're still mapping out the cash side, my Calgary down payment guide breaks down the minimums and the strategy behind them.
The Alberta advantage: no land transfer tax
Here's the part that makes Calgary genuinely cheaper to buy into than Toronto or Vancouver.
Most provinces charge a land transfer tax — a percentage of the purchase price you pay the government simply for changing the name on title. It's the single largest closing cost in much of the country. Alberta doesn't have one.
The numbers are stark. On that $600,000 home:
That's not a typo. The same transaction that costs a Vancouver buyer five figures costs a Calgary buyer a few hundred dollars. It's one of the quiet financial reasons people keep choosing this city — and choosing among its many communities — and it's worth weighing if you're comparing markets, something I dig into in my Calgary vs. Toronto breakdown. Alberta isn't perfect, but at the closing table, it's hard to beat.
Your Calgary closing costs, line by line
So if there's no land transfer tax, what exactly are you paying for? Here's every line item, what it does, and what it typically runs.
Legal and lawyer fees
You need a real estate lawyer to close in Alberta — full stop. They review the contract, run title searches, register the transfer and your mortgage, handle the money, and make sure you actually own what you think you're buying.
Expect roughly $1,200 to $2,000 all-in for a standard purchase. That usually bundles the lawyer's base fee (often $900 to $1,400) plus disbursements — out-of-pocket costs like courier fees, title searches, and registration charges. Ask for an itemized quote up front so there are no surprises.
Title insurance
Title insurance is a one-time policy that protects you against problems with the property's title — fraud, survey errors, encroachments, or a previous owner's unpaid liens surfacing after you buy.
In Alberta it typically costs $200 to $500, paid once and good for as long as you own the home. Most lawyers and lenders now require it — for the price, an easy yes.
Land title registration fees
This is Alberta's version of a transfer cost — a rounding error next to land transfer tax elsewhere.
The Land Titles Office charges $50 plus $5 for every $5,000 of value, on both the property transfer and the mortgage. On a $600,000 purchase, the transfer registration works out to about $650; register a $480,000 mortgage on top and that's roughly another $530. These rates rose in late 2024, so older guides may quote less — but you're still looking at a four-figure total at most.
Property tax and utility adjustments
When you take possession partway through the year, the books get squared. If the seller already paid the year's property taxes, you reimburse them for the portion covering the time you'll own the home. Utilities and condo fees are prorated the same way.
This one swings the most. Depending on your possession date and whether taxes were prepaid, the adjustment runs from a few hundred dollars to $2,500 or more. Your lawyer calculates the exact figure on the statement of adjustments — ask to see it a few days before closing, not the morning of.
Home inspection
Skipping the inspection to save a few hundred dollars is one of the few closing-cost shortcuts I'll talk a client out of.
A professional inspection runs about $400 to $650 for a typical Calgary home — more for larger or luxury properties. It's paid before closing, and a good inspector earns the fee the moment they flag a $12,000 roof you didn't know was failing. That's leverage to renegotiate, or a reason to walk.
Appraisal
Your lender may require an appraisal to confirm the home is worth what you've agreed to pay. It usually costs $300 to $500.
The good news: on many insured mortgages, the lender or insurer covers it, so you may not see this charge at all. Ask your mortgage broker whether it applies to your file before you budget for it.
Mortgage default insurance — only with less than 20% down
If your down payment is under 20%, your lender requires mortgage default insurance (CMHC or a private insurer). The premium is a percentage of your mortgage that climbs as your down payment shrinks:
Two things soften the blow here. The premium is almost always added to your mortgage and paid over time, not handed over in cash at closing. And while several provinces charge sales tax on that premium up front, Alberta — with no PST — doesn't, so there's nothing extra due at the table. For more on how down payment size changes your costs, see my down payment guide.
GST — new builds only
Buy a brand-new home from a builder and you'll pay 5% GST on the purchase price. Buy a resale home — the vast majority of Calgary transactions — and there's no GST at all. Resale homes are exempt, full stop.
If you are buying new, the math matters: 5% on a $700,000 build is $35,000. The federal first-time buyer GST rebate can wipe out much of that on qualifying new homes up to $1 million (phasing out by $1.5 million), so don't assume you're paying full freight. I cover that and the other programs in my rundown of first-time home buyer incentives in Alberta.
A real example: closing on a $600,000 Calgary home
Here's a realistic resale purchase, end to end. Say you're buying a $600,000 home with 20% down — a $120,000 down payment and a $480,000 mortgage. Here's what lands on your statement of adjustments, roughly:
Total: roughly $5,000 to $6,000 — just under 1% of the purchase price.
Now change one thing. Put 10% down instead of 20% and you add a 3.10% CMHC premium — but it's financed, so your cash-at-closing barely moves. Make it a new build and you add 5% GST, which can dwarf everything else here. Your down payment and whether you're buying new are the two biggest levers on the final figure.
How much should you actually budget?
Most national guides say to set aside 1.5% to 4% of the purchase price for closing costs. That's a sensible starting point, but remember what it bakes in: land transfer tax, which you don't pay here.
In practice, a Calgary buyer purchasing a resale home with 20% or more down often lands closer to 1% to 2%. The number climbs when you buy a new build (GST), put less down, or close at a point in the year that creates a large tax adjustment. My advice: budget toward the higher end, then be pleasantly surprised. A cushion at possession beats scrambling for cash the week you get your keys.
A few ways to trim the figure: shop your lawyer's quote, confirm whether your lender covers the appraisal, and time your possession date thoughtfully with your agent. Small moves, real savings. To see closing costs in context, my guide to the cost of living in Calgary sets the one-time and ongoing numbers side by side — and if you're relocating here, moving to Calgary covers the rest of the landing.
A quick note for sellers
Closing costs aren't only a buyer's concern. If you're selling, your own costs come off the other end of the deal — real estate commission, your lawyer's fee, any mortgage discharge or prepayment penalty, and a final tax-and-utility adjustment. Different structure, just as real to plan for.
Start by knowing your number. You can get a no-obligation sense of your home's value through my home valuation tool, and my seller's resources walk through what to expect from list to close. Knowing your net proceeds early changes how you plan your next move.
Frequently Asked Questions
Are closing costs included in my mortgage?
Mostly, no. Closing costs are paid in cash, separately from your mortgage and on top of your down payment. The main exception is mortgage default insurance — with less than 20% down, that premium is added to your mortgage balance rather than paid at the table. Everything else, from lawyer fees to the tax adjustment, comes out of your own funds at possession.
How much are closing costs on a $500,000 home in Calgary?
For a resale purchase with 20% or more down, plan for roughly $4,000 to $6,000 — lawyer fees and disbursements, title insurance, land title registration, the property tax adjustment, and a home inspection. With no land transfer tax in Alberta and no GST on resale homes, that figure sits well below what you'd pay on an equivalent home in Ontario or B.C.
Does Alberta have a land transfer tax?
No — and that's a genuine advantage. Instead of a percentage-based land transfer tax, Alberta charges a modest land title registration fee of $50 plus $5 for every $5,000 of value, on both the transfer and your mortgage. On a $600,000 home, that's a few hundred dollars rather than the $10,000 to $17,000 a buyer would owe in Vancouver or Toronto.
Do I pay GST when buying a house in Calgary?
Only on new construction. Brand-new homes purchased from a builder are subject to 5% GST. Resale homes — the majority of what sells in Calgary — are exempt, so you pay no GST at all. If you're buying new and it's your first home, the federal first-time buyer GST rebate can recover much of the 5% on qualifying homes up to $1 million.
Can the seller pay my closing costs?
Generally, no — buyer and seller each cover their own. There's no built-in mechanism for a Calgary seller to absorb your legal fees or adjustments the way you might see in some U.S. markets. What you can do is negotiate price or possession terms, choose a lender that covers the appraisal, and shop your lawyer's fee. Small adjustments, but they add up.
Make your numbers add up before you write the offer
Closing costs are the part of buying that nobody puts on a billboard — and exactly the part that derails an otherwise smooth purchase. You don't have to guess. Bring me the home you're considering and I'll give you a clear, line-by-line estimate of what you'll owe at possession, so the only surprise on closing day is how good it feels to get the keys.
Remember those two buyers from the top — the Calgary one and the Toronto one? You're the one with the lighter bill. Let's make the most of it.
I'm Conor Elder, a Calgary luxury real estate specialist with LPT Realty, and I've guided clients through more than 100 closings and over $100M in sales across the city — including quiet off-market opportunities you won't find on the public boards. Start by browsing current Calgary listings, see how I work with buyers from first showing to final signature, or reach me through my contact page or at (403) 804-2724. No pressure, no obligation — just a straight answer about what your purchase will really cost.