Introduction: Why Closing Costs Matter
Buying a home involves more than just your down payment and mortgage. Closing costs — the final expenses paid before you officially take ownership — can total 1.5% to 4% of the purchase price. At Urban Real Estate, we help buyers budget for the full picture.
What Are Closing Costs?
Closing costs are a combination of legal, administrative, and financial fees required to complete a property transaction. These can vary depending on location, property type, and mortgage provider.
Typical Closing Costs Include:
Legal Fees – Lawyers or notaries are required to facilitate the transaction, perform title searches, and register your mortgage. These range from $1,000–$2,000.
Land Transfer Tax (LTT) – This provincial tax is based on a percentage of the home’s price. First-time buyers in Alberta are exempt from a formal LTT but still pay registration and title fees.
Title Insurance – Protects against fraud or title defects. Cost ranges from $200–$400.
Home Inspection Fee – Strongly recommended and costs $400–$700, depending on property size.
Appraisal Fee – Required by some lenders to validate home value. Can cost $300–$500.
Property Tax Adjustments – You may need to reimburse the seller for prepaid taxes.
Mortgage Insurance (if applicable) – If you put less than 20% down, you’ll pay CMHC or private insurer fees (often rolled into your mortgage).
Moving Costs – Budget for professional movers or a rental truck.
Additional Costs You Might Encounter
Utility hookup fees
Condo document review (if buying a condo)
Prepaid expenses or reserve fund contributions
Pros and Cons of Budgeting Conservatively
Pros:
No last-minute stress
Better financial control
More accurate affordability planning
Cons:
May delay buying if savings are limited
Can feel overwhelming if not broken down clearly
Know Before You Close
Closing costs can catch first-time buyers off guard — but with a clear estimate and smart planning, they’re easy to manage. Let’s make sure you’re fully prepared.
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Urban Real Estate is here to guide you every step of the way.
— Urban Real Estate, Calgary
FAQs About Closing Costs
Can closing costs be rolled into my mortgage?
Some fees (like CMHC insurance) can be, but others must be paid upfront.
What if I don’t have extra savings beyond my down payment?
We’ll help you explore assistance programs or adjust your budget accordingly.
Is a home inspection really necessary?
Yes. It’s one of the best investments you can make to avoid major repair surprises later.