Not your typical sales pitch, but an outcome of the Provincial Budget recently released...
This maybe Alberta's equivalent to a Land Transfer Tax. Rather than creating a new tax and using the "Tax" word, The Alberta Government is increasing fees for Title Registration and Mortgage Registration. Contrary to the spin put out by the Government, this was not a recommendation from REALTOR® Associations. On the contrary, we're concerned that not only does this increase the "cash" a buyer will need at closing, but may prevent Home Owners from shopping around for a mortgage and abetter rate at renewal of the Mortgage.
What fees can you expec to see going up? The table below details the impact of these increases on the fees for a $500,000 home with a $400,000 mortgage:
|Fees Prior to July 1, 2015 |
($50 + $1 per $5,000 increment)
|Fees After July 1, 2015 |
($75 + $6 per $5,000 increment)
|Land Title Registration||$150||$675|
The average sale price of a single family home in Red Deer is $393,257. Depending on how much you are putting down you can expect to bring an extra $800 - $1,000 to the law office for closing fees.
Though the increase as of July 1st represents a hike of more than 400% for the real estate consumer, the cost of real estate transfers in Alberta remains lower than other provinces. This can be attributed to the continued avoidance of a Land Transfer Tax in Alberta at either the provincial or local levels.
In addition to these fees, your lawyer will most likely be pulling a tax certificate form the City of Red Deer to verify how much the property taxes will be for your new home. The City of Red Deer has double the price of that service from $15 to $30. Not a massive increase, and for many $30 is very affordable, however this is another "user fee" that is on the rise.
Bottom line. Buying a home has higher closing fees taking effect July 1. You may want to move in prior to July 1 to avoid paying more.