The much awaited closing date of a real estate transaction is an exciting time. However, before the new homeowners can receive the keys, there are a few expenses that will have to be paid upfront. Closing costs are the final payments you have to make when you’re buying a home. These costs consist of the down payment, your mortgage insurance premium, legal fees and title insurance.
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To help first-time home buyers better understand what costs they should expect to pay on closing day, Zoocasa compiled estimates based on average home prices in 25 cities in Alberta. Calculations assume the minimum down payment is made (and includes the initial deposit amount) and that mortgage default insurance costs have been rolled into the mortgage, and hence do not need to be paid on closing day. While Alberta does not have a Land Transfer Tax like some other Canadian provinces, they do have a much less expensive Land Transfer Title Fee which has been included in the chart.
How Much Will Buyers Pay on Closing Day in Alberta?
Canmore is the city with the highest closing costs, totaling $69,778. The next most expensive closing costs are in Chestermere, at $40,838, more than $29,000 in savings. Canmore’s high average home price is why it has the most expensive closing costs by such a large margin. The average home price in the city is $920,300, almost $300,000 higher than the average home in Chestermere, costing $632,984. The larger home price means a bigger down payment is required, which is where the majority of the cost is coming from with a negligible land title transfer fee. Okotoks is the third most expensive on the list, with an average home price of $585,300 and a down payment of $33,530, resulting in final closing costs of $36,039.
Buyers looking for the greatest affordability may consider venturing to Wetaskewin, with closing costs adding up to just $16,178. The more affordable average home price of $277,665 means a down payment of only $13,883 is required in the city, resulting in $56,000 less than the closing costs in Canmore. The next most affordable is Medicine Hat, where the average home price of $308,444 requires a down payment of $15,422, resulting in final closing costs of $17,738. Cold Lake rounds out the bottom three with a home price of $319,865, a minimum down payment of $15,993 and final closing costs of $18,317.
If you’re preparing to enter the summer market, it’s important to speak with a local realtor to learn about market conditions in your specific area. If you’re ready, give us a call today to speak with a qualified agent!
