From the initial home search to the exciting day you receive the keys to your new property, prospective homebuyers in Calgary, Alberta, should be prepared for various closing costs. These expenses, often referred to as closing costs, are a crucial part of the home buying process. Keep in mind that closing costs can fluctuate, and the figures provided here are based on average estimates.

Home Inspection
Average Cost: $400 to $700

A home inspection is a vital step in the home buying process. It's typically included as a condition in the purchase contract. In Alberta, the cost of a home inspection for an average-sized property ranges from $400 to $700. Larger homes may incur higher inspection fees. Investing in a thorough home inspection can offer peace of mind and potentially save you from unexpected issues down the road.

Home Inspection for a Condo
Average Cost: $200 to $400

Condo inspections are usually less expensive compared to single-family homes because there's less to inspect. A condo inspection typically costs between $200 and $400. Despite the reduced cost, it's still advisable to have a condo inspection to uncover any hidden issues, such as leaks or malfunctioning appliances.

Home Inspection for a New-Built Home

Even with brand-new homes, it's wise to consider a home inspection. Builders often work with deficiency lists, and having an inspection report can help address any issues promptly.

Additional Costs After the Home Inspection

Sometimes, a home inspection may reveal additional issues that require further attention, such as electrical problems, structural concerns, or mould and asbestos. Be prepared for potential extra expenses for further testing or consultations with certified professionals.

Lawyer
Average Cost: $1,200 to $1,600

Hiring a real estate lawyer is a standard part of the home buying process. In Calgary, Alberta, you can expect to pay around $1,500 on average for legal fees. These fees usually range from approximately $800 to $1,000, with any remaining costs reimbursed. Your lawyer will handle various tasks, including fund transfers, title checks, and property report reviews.

Realtor Fees

Realtor fees in Calgary, Alberta vary depending on the brokerage and the specifics of your transaction. In most cases, the seller pays the realtor fees, but the arrangement may differ in certain situations, such as with discount brokerages, builders, or self-represented sellers.

Appraisal Fee
Average Cost: $200 to $400

Many lenders require an appraisal to ensure that the property's value aligns with the loan amount. The cost of an appraisal typically falls between $200 and $400. Sometimes, the lender may cover this fee, but in other cases, the buyer is responsible for payment.

Mortgage Insurance

Mortgage insurance, often referred to as CMHC insurance, is required if your down payment is less than 20% of the home's purchase price. The premiums vary based on the down payment amount and the mortgage insurance provider. CMHC and private insurers like Sagen offer similar rates. Buyers can choose to include the insurance premium in their monthly mortgage payment or pay it as a lump sum.

Land Transfer Fee

In Alberta, there is no land transfer tax, but there is a land transfer fee that depends on the property's value. The real estate lawyer typically handles these fees, with the buyer reimbursing them.

Title Insurance
Average Cost: $200 to $300

Many lenders require title insurance to protect against issues like title fraud or deficiencies in the Real Property Report. Title insurance typically costs between $200 and $300 for an average home. Your lawyer usually purchases this insurance on your behalf, and you reimburse them.

Deposit

While not a closing cost, the deposit is a financial commitment that accompanies your offer to purchase a home. If the conditions are met, it goes toward your down payment; otherwise, it may be returned or subject to specific terms in your agreement.

GST
There is no GST on resale homes in Calgary, Alberta. However, if you're buying a newly constructed home, GST may apply, but it's typically included in the contract price.

Moving Costs

Whether you hire a professional moving company or opt for a DIY move with a rental truck, expect expenses related to relocating to your new home.

Other Ongoing Costs for Homeowners

Apart from closing costs, homeowners should budget for ongoing expenses, including:

  • Home Insurance
  • Property Taxes
  • Condo Fees (if applicable)
  • HOA Fees (if applicable)
  • Utility Costs (gas, electricity, water, sewer)
  • Maintenance Costs (varies depending on factors like property size and age)

Before embarking on your homebuying journey in Calgary, Alberta, it's essential to understand and budget for these closing costs and ongoing expenses to ensure a smooth transition into homeownership.

If you’re looking for a Mortgage Specialist, reach out to Anna Kutepov - Calgary Mortgage Associate. I have been providing personalized mortgage services in Calgary, Alberta, for the past eight years. My goal is to help you navigate the complexities of the mortgage process by providing the best mortgage advice and finding the perfect financing solution to fit your unique needs.

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