If you’re considering moving to Alberta or buying an Alberta investment property, the question if Alberta properties are subject to a land transfer tax (or property transfer tax as it may be called in some provinces), comes up quite often.
Does Alberta have a land transfer tax? The short answer is no. While most Canadian provinces levy a property or land transfer tax, Alberta requires only Land Transfer Registration Fees and Mortgage Registration Fees to be paid.
The amount of these fees is much smaller when compared to other provinces. Here’s a breakdown of the fees you can expect:
- The Land Transfer Registration Fee costs a base of $50 and an additional $2 for every $5000 in property value.
- If you have a mortgage on your property, a Mortgage Registration Fee applies and costs a base of $50 and an additional $1.5 per $5000 on the mortgage amount.
It's important to note that these fees and any legislation regarding land transfer taxes or applicable closing costs may change at any time. Always check with your lawyer or real estate professional prior to signing an agreement.
For example, a $300,000 Alberta property with a $200,000 mortgage would cost:
- Land transfer registration fees: $170
- Mortgage registration fees: $110
These fees tend to be a small fraction of what a homebuyer could potentially pay for Land Transfer Taxes if buying a property in Ontario or British Columbia, making Alberta an attractive and cost-efficient place to purchase a property.
If you’re purchasing or refinancing a property in Alberta, the Deeded team can help you close your transaction seamlessly with our virtual process. You can sign your documents virtually from anywhere in Canada, saving you from having to travel to Alberta or retaining a second lawyer locally to witness your document signing.
Getting your Alberta closing process started is simple. Click here to get started, upload your purchase contract, and we’ll connect you with one of our independent real estate lawyers to get you on your way to owning your Alberta property.