First-Time Buyer Closing Costs in Calgary: A Complete Breakdown

You have saved your down payment, got your mortgage pre-approval, and found the perfect home in Calgary. But if your budget only accounts for the down payment, you are in for a surprise. Closing costs — the fees and expenses you pay between accepted offer and getting the keys — typically add 1.5% to 2.5% of the purchase price.

On a $500,000 home, that is $7,500 to $12,500 in additional costs beyond your down payment. Many first-time buyers discover this too late, scrambling to find extra cash days before closing.

This guide breaks down every closing cost you will face as a Calgary first-time buyer, so you can budget accurately and avoid last-minute stress.

The Big Advantage: No Land Transfer Tax in Alberta

Before we dive into costs you will pay, let's start with the massive cost you will not pay in Calgary: land transfer tax.

Ontario land transfer tax on $500,000 home: $6,475 BC property transfer tax on $500,000 home: $8,000 Alberta land transfer tax on $500,000 home: $0

Alberta and Saskatchewan are the only provinces in Canada with no land transfer tax. This saves Calgary buyers thousands compared to Toronto or Vancouver, but it does not mean closing is free — it just means your closing costs are 1.5% to 2.5% instead of 3% to 4%.

Legal Fees and Disbursements: $1,200 to $2,000

Your real estate lawyer handles title transfer, mortgage registration, and fund disbursement. This is not optional — you need a lawyer to close a real estate transaction in Alberta.

What Your Lawyer Does

• Reviews the purchase contract and ensures terms are met
• Conducts title search to confirm the seller legally owns the property
• Registers the transfer of title from seller to you
• Registers your mortgage with the land titles office
• Collects and pays property tax adjustments
• Ensures all existing liens or encumbrances are cleared
• Disburses funds to the seller, realtor commissions, and other parties
• Provides you with final reporting letter and copies of registered documents

Cost Breakdown

Legal fees (lawyer's time): $800 to $1,200 Disbursements (out-of-pocket costs the lawyer incurs):

• Title search: $100 to $150
• Title registration: $300 to $400
• Mortgage registration: $100 to $150
• Document courier fees: $50 to $100

Total legal costs: $1,200 to $2,000

Pro tip: Shop around. Legal fees are negotiable, and some lawyers offer flat-rate packages for first-time buyers. Ask your mortgage broker or realtor for referrals, but interview at least two lawyers and compare quotes.

Title Insurance: $250 to $400 (One-Time Premium)

Title insurance protects you and your lender against title defects, fraud, survey issues, and other ownership problems that were not discovered during the title search.

What Title Insurance Covers

• Title fraud: Someone forges documents to fraudulently transfer your property
• Survey errors: Fence, driveway, or shed encroaches on neighbor's property
• Unpaid liens: Previous owner's unpaid contractor bills that attach to the property
• Zoning violations: Previous owner made changes without permits (illegal basement suite, unapproved addition)
• Access issues: Property does not have legal access to a public road

Cost: $250 to $400 for a $500,000 home (one-time premium, coverage lasts as long as you own the property)

Is it required? Most lenders require title insurance as a condition of mortgage approval. Even if not required, it is highly recommended. For a few hundred dollars, you get coverage worth hundreds of thousands.

Home Inspection: $400 to $650

A home inspection is critical — it reveals the property's condition and identifies problems the seller may not have disclosed.

What a Home Inspector Examines

• Foundation and structural integrity
• Roof condition and age
• Electrical systems and panels
• Plumbing (leaks, water pressure, hot water tank)
• HVAC (furnace, air conditioning)
• Windows and doors
• Insulation and ventilation
• Evidence of water damage, mold, or pests

Cost:

• Single-family home (1,500 to 2,000 sq ft): $450 to $550
• Townhouse or condo: $400 to $500
• Larger homes (2,500+ sq ft): $600 to $700

Specialty inspections (if recommended):

• Sewer scope (camera inspection of sewer line): $250 to $350
• Mold inspection: $400 to $600
• Structural engineer assessment: $500 to $1,000

When to skip the inspection: Never. Even on new builds, inspections catch deficiencies. I have seen $8,000 furnace replacements discovered in year-old homes. Always inspect.

Property Tax Adjustments: Variable

Property taxes in Calgary are paid annually in arrears (you pay for the previous year's taxes in the current year). At closing, you and the seller settle up based on who owned the property when.

How Tax Adjustments Work

Example:

• Closing date: June 15, 2025
• Annual property taxes: $3,600
• Seller owned the property for 165 days (Jan 1 to June 14)
• You own the property for 200 days (June 15 to Dec 31)

Seller's portion: $3,600 ÷ 365 × 165 = $1,628 Your portion: $3,600 ÷ 365 × 200 = $1,972

If the seller has already paid the full year's taxes, they are credited $1,972 at closing (you reimburse them for the portion of the year you will own the property). If taxes have not been paid, you receive a credit.

Impact on your closing costs: This can add or subtract $500 to $3,000 depending on closing date and whether taxes were prepaid.

Condo Costs (If Buying a Condo)

If you are buying a condo or townhouse with a condo corporation, there are additional costs.

Condo Document Review Fee: $200 to $400

Your lawyer reviews the condo status certificate, reserve fund study, bylaws, and financial statements. Some lawyers include this in their base fee, others charge separately.

Condo Fee Adjustment: Variable

Just like property taxes, you and the seller adjust condo fees based on the closing date. If the seller prepaid the month and you close mid-month, you reimburse them for the portion of the month you own the unit.

Estoppel Certificate (Sometimes Required): $100 to $200

Some lenders require an estoppel certificate from the condo corporation confirming the seller has no outstanding fees or special assessments owing.

Mortgage Default Insurance Premium: 2.8% to 4.0% of Mortgage (If Less Than 20% Down)

If you are putting down less than 20%, you need mortgage Default Insurance from CMHC, Sagen, or Canada Guaranty. The premium is based on your down payment percentage.

Example:

• Purchase price: $500,000
• Down payment: $25,000 (5%)
• Mortgage amount: $475,000
• Insurance premium: $475,000 × 4.00% = $19,000

Good news: This premium is added to your mortgage balance — you do not pay it in cash at closing. Your mortgage becomes $494,000, and you pay it off over 25 or 30 years.

Impact on closing costs: Zero cash required, but your mortgage is larger and your monthly payments are higher (approximately $100 to $120/month more on a $500,000 mortgage).

Utility Hookups and Deposits: $200 to $500

When you take possession, you need to set up utilities in your name.

Electricity and gas (Enmax, Direct Energy, etc.):

• Setup fee: $0 to $50
• Deposit (if you have no credit history with the provider): $150 to $300

Water and sewer (City of Calgary):

• Setup fee: $0
• No deposit required

Internet and cable:

• Installation fee: $50 to $150 (often waived with promotional offers)

Total utility setup costs: $200 to $500

Appraisal Fee: $300 to $500 (Sometimes Required)

Your lender may require a property appraisal to confirm the purchase price aligns with market value. Some lenders cover this cost, others pass it to you.

Cost: $300 to $400 for single-family homes and townhouses, $400 to $500 for larger properties

When it is charged: Some lenders charge upfront, others deduct from your mortgage advance. Confirm with your lender.

Moving Costs: $500 to $3,000

Do not forget the actual move.

DIY move (truck rental + friends + pizza): $300 to $600 Professional movers (local move, 2-bedroom condo): $800 to $1,500 Professional movers (3-bedroom house): $1,500 to $3,000

Add:

• Packing materials (boxes, tape, bubble wrap): $100 to $200
• Rental truck insurance: $50 to $100
• Temporary storage (if closing dates do not align): $150 to $400/month

Immediate Post-Purchase Costs

Once you close, there are additional costs you need to budget for:

Home Insurance: First Month or Year Upfront

Annual cost for Calgary homes (average):

• Condo: $400 to $800/year
• Townhouse: $800 to $1,200/year
• Single-family home: $1,200 to $2,000/year

Most lenders require proof of insurance before they release funds, and most insurers require the first year paid upfront.

Budget: $1,200 to $2,000 (for single-family homes)

Immediate Repairs and Improvements

Even if the home inspection was clean, there are always things to fix or improve right away:

• Paint and minor cosmetic updates: $500 to $2,000
• Window coverings (blinds, curtains): $300 to $1,000
• Lawn care equipment (lawnmower, snow shovel, etc.): $200 to $500
• Minor repairs flagged by home inspector: $500 to $2,000

Budget: $1,500 to $5,000

Furniture and Appliances

If you are moving from a 1-bedroom rental to a 3-bedroom house, you will need more furniture. If appliances are not included, you will need to buy them.

Appliance package (fridge, stove, washer, dryer): $3,000 to $6,000 Furniture for additional rooms: $2,000 to $10,000+

This is not a closing cost, but it is a reality of homeownership that first-time buyers often underestimate.

Total Closing Costs: Calgary Example

Let's calculate total closing costs for a typical Calgary first-time buyer purchase.

Purchase price: $500,000 Down payment: $25,000 (5%) Mortgage amount: $475,000 (plus insurance premium)

As a percentage of purchase price: 1.8%

CMHC insurance premium (added to mortgage, not paid in cash): $19,000

Total cash required at closing:

• Down payment: $25,000
• Closing costs: $9,000
• Total: $34,000

This is why the standard advice is to budget 7% to 10% of purchase price in total cash (down payment + closing costs).

How to Reduce Closing Costs

Negotiate Seller Contributions

In a buyer's market, sellers may agree to cover some closing costs (legal fees, property tax adjustments) to close the deal. This is less common in Calgary's current tight market, but worth asking.

Shop for Services

Get quotes from multiple lawyers, home inspectors, and insurance providers. Prices vary significantly.

Close Mid-Month

Closing at the end of the month often results in higher property tax and condo fee adjustments. Closing mid-month can reduce adjustment amounts.

Avoid Peak Moving Season

Professional movers charge more in summer (May to August) when demand is highest. If you can move in fall or winter, you will pay less.

First-Time Home Buyer Incentives (Rebates and Programs)

While Alberta does not have land transfer tax rebates (because there is no land transfer tax), there are federal programs:

GST/HST New Housing Rebate: If you are buying a newly constructed home, you may be eligible for a partial rebate of the GST paid on construction (up to $6,300 on homes under $350,000, phasing out completely at $450,000).

Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free for your down payment (must be repaid over 15 years). This does not reduce closing costs, but it increases your available capital.

Closing Cost Checklist for Calgary First-Time Buyers

Use this checklist to ensure you have budgeted for everything:

Required Costs:

• Down payment (5% to 20% of purchase price)
• Legal fees and disbursements ($1,200 to $2,000)
• Title insurance ($250 to $400)
• Home inspection ($400 to $650)
• Property tax adjustment (variable)
• Home insurance (first year: $1,200 to $2,000)

Likely Costs:

• Utility hookups and deposits ($200 to $500)
• Appraisal fee ($300 to $500, sometimes covered by lender)
• Moving costs ($500 to $3,000)

Condo-Specific Costs:

• Condo document review ($200 to $400)
• Condo fee adjustment (variable)
• Estoppel certificate ($100 to $200)

Post-Closing Costs:

• Immediate repairs and improvements ($1,500 to $5,000)
• Furniture and appliances (variable)

Total budget: 1.5% to 2.5% of purchase price for closing costs, plus 5% to 20% for down payment.

Common First-Time Buyer Mistakes

Mistake 1: Only Budgeting for the Down Payment

You save $25,000 and think you are ready to buy a $500,000 home. But you need $34,000+ when you include closing costs. Budget conservatively.

Mistake 2: Draining All Savings for Closing

If you use every dollar for down payment and closing costs, you have nothing left for emergencies. Keep 3 to 6 months of expenses in reserve after closing.

Mistake 3: Skipping the Home Inspection to Save Money

Skipping a $500 inspection to discover a $12,000 roof replacement after closing is penny-wise and pound-foolish. Always inspect.

Mistake 4: Not Getting Multiple Quotes for Services

The first lawyer or home inspector you call may not be the most affordable. Get at least two quotes for every major service.

Final Thoughts

Calgary's lack of land transfer tax is a massive advantage for first-time buyers — you save $6,000 to $10,000 compared to Ontario or BC. But closing costs are still real and substantial. Budget 1.5% to 2.5% of the purchase price beyond your down payment.

The buyers who close smoothly are the ones who plan ahead, budget conservatively, and do not scramble for cash at the last minute. Start saving early, understand every cost you will face, and keep a buffer for unexpected expenses.

Homeownership is worth it, but go in with eyes open and a realistic budget.

For more first-time buyer guidance, see the First-Time Home Buyer Guide: Calgary 2025.

Questions about closing costs or first-time buyer financing? Contact Jay: jaysinghmortgage@gmail.com or 403.409.1126.