Home buyers in Calgary will feel the impact of the 2015 budget because of a shocking hike in land titles and mortgage registration fees that start July 1, 2015.
According to Service Alberta Minister Stephen Khan, lawyer and real-estate associations say that Alberta’s registrations fees are low comparative to other provinces.
There are two parts of land title and mortgage registration fees. The flat-fee portion for each type of registration goes from $50 to $75.
But it’s on the “variable” or per-dollar fee that homeowners will see the biggest increase in fees. That fee will rise to six times its current level.
For example: Starting July 1, someone buying an average-priced home in Calgary of $500,000 with a $400,000 mortgage will pay $675 for land title registration and $555 for mortgage registration, a total of $1230. Registration fees are up 424 percent from the current fees of $290.
To keep home buying costs and fees in perspective, buying a home Alberta is still well below what homebuyers pay in provinces that have land transfer taxes. Using my example of a home purchase of $500,000, the land transfer tax in Vancouver would be $8000 and in Toronto Ontario $12,200.
Are you considering buying a home in Calgary and not sure of all the steps and costs associated with a home purchase? Give us a call today and book an appointment to meet with one of our buyer specialists, where we will show you all of your out-of-pocket expenses plus show you how to save thousands on your mortgage. Call Dean Martin at 403-837-0909.