NDP Promises to repeal Fee Increases!
In case you missed it, one element of the NDP platform was a promise to repeal the increases to mortgage registration/land title registration fees that were put forward in the PC budget in March 2015 and restore the current 2014/15 fees. Click here for the announcement of the campaign promise. Recent statements from the NDP indicate that the government will be pushing forward in eliminating these increases. There is no official timeline yet for this to take place, as the election result represents a significant change and the NDP will require time to transition into office and be prepared to take real action on campaign promises.
Background - Under the March 2015 PC Budget the consumer would have seen the following increases:
- Fees for mortgages and land titles are based on a combined flat and variable fee. These fees are paid when acquiring a new property and new mortgage.
- Under the PC budget, the flat fee for mortgages and land titles will increase by $25. The variable fee for mortgages and land titles will increase from $1 to $6 for every $5,000 of property value.
- The following fees will be effective July 1, 2015:
- Mortgages – Flat fee: Increasing from $50 to $75
- Mortgages – Variable fee: Increasing from $1 per $5,000 property value increments to $6 per increment. This is a 600 percent increase.
- Land Title Transfer / Title creation – Flat Fee: Increasing from $50 to $75
- Land Title Transfer / Title creation – Variable fee: Increasing from $1 per $5,000 property value increments to $6 per increment. This is a 600 percent increase.
- Increases to these fees will only hurt Albertians who are purchasing property and make life less affordable for homebuyers. The impact will be as follows:
- On a house value of $450,000, total land transfer and mortgage fees will increase from $262 to $1,122.
- On a house value of $650,000, total land transfer and mortgage fees will increase from $334 to $1,554.
- The PCs are also increasing the cost of searching the land titles registry from $10 to $15.
Update – Land Transfer Fee Increases Good news! - June 2015
Since the Prentice budget was not passed prior to the election, land title fee increases will not be implemented July 1, as originally planned. The new Government will not pass a Budget until the fall. The Land Titles office released the following statement: “Previously announced fee increases for some registry services were not enacted therefore the current fee structure remains”.