The Government of Alberta announced an unexpected change to the Land Titles Registration Fee during the release of its Budget 2024 on February 29, 2024.
Homeowners will soon see an exponential increase in closing costs. Currently, consumers pay a $50.00 fee and an additional $2.00 for every $5,000 of the property's purchase price for the title transfer and an additional $50.00 fee plus $1.50 for every $5,000 of the mortgage amount.
With this change, homeowners will now pay a $50.00 fee and an additional $5.00 for every $5,000 of the property's purchase price for the title transfer, and an additional $50.00 fee plus $5.00 for every $5,000 of the mortgage amount.
For example, the price of registering a $450,000 home with a 10% down payment, will jump to $955, an increase of $553.50 from the current fees.
The increased costs are intended to provide support for the continued modernization of the registries system. No implementation date has been announced, but we will inform members once we receive more information.
Graphic provided by the Government of Alberta. Please note: there is an error as it should be cited as a 10% down payment for proper calculations.
As an Association, we are disappointed by yesterday's announcement as it came as a surprise to many within the industry. Purchasing a home is one of the biggest financial decisions that consumers will make, and the additional cost could inhibit or impact the dream of homeownership for many.
Although Alberta's land titles registration fee remains lower than other provinces, we know this will have a direct impact on the clients you serve every day. The Alberta real estate association has committed to advocating for the subsequent removal of the increased fee once the land titles modernization project has been completed.
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