What Closing Costs Should Airdrie and Calgary
Buyers Budget Beyond Their Down Payment?

Most buyers know they need a down payment. Fewer realize they need a separate pool of cash to cover the costs of actually closing the deal — and those costs don't come from the mortgage.

The Financial Consumer Agency of Canada advises buyers to budget between 1.5 and 4 percent of the purchase price for closing costs. On a $500,000 Airdrie home, that's $7,500 to $20,000 on top of your down payment. On a $600,000 home, $9,000 to $24,000. Understanding what those costs are and when they come due is part of being a prepared buyer.

This is a general guide. Every transaction is different, and the specific amounts for your purchase should be confirmed with your mortgage broker, lawyer, and home inspector.

Down Payment and Closing Costs Are Not the Same Thing

This distinction matters because they come from different places in your budget and are due at different times.

Your down payment goes toward the purchase price of the home. The minimum in Canada is 5 percent on homes up to $500,000, and 5 percent on the first $500,000 plus 10 percent on the portion between $500,000 and $1,500,000 for higher-priced homes. Homes above $1,500,000 require at least 20 percent down.

Closing costs are the fees and expenses you pay to complete the transaction — to a home inspector, a lawyer, an insurance company, a government registry. They don't reduce what you owe on the home. They generally can't be rolled into your mortgage. They need to be liquid when you need them.

A buyer who has saved exactly the minimum down payment but hasn't set aside closing costs may not have enough to actually close.

Costs Before Conditions Are Removed

Some costs come during the due-diligence period — while your conditions are still in place.

• Home inspection. A standard residential inspection in Alberta typically costs $400 to $600 for a detached home, with larger or older properties running higher. You pay the inspector directly, whether or not you proceed with the purchase. Knowing the condition of the property before you waive your inspection condition is the whole point.
• Condo document review. If you're buying a property with a condo corporation, you have the right to review the corporation's documents — the reserve fund study, financial statements, estoppel certificate, bylaws, and board minutes. A professional condo document reviewer typically charges $400 to $600 to read and summarize the package. This is optional but worth considering for any complex where the finances aren't immediately clear.
• Appraisal. Lenders sometimes require an independent appraisal, particularly for non-standard properties, higher loan-to-value ratios, or certain mortgage products. If your lender requires one, the cost is typically $300 to $500, usually paid by the buyer. Ask your mortgage broker early whether your situation requires one.

Costs at Closing

These are the expenses due on or near possession day, typically paid through your lawyer's trust account.

• Legal fees and disbursements. You need a licensed real estate lawyer to complete a property purchase in Alberta. Legal fees for a standard residential buyer file typically run $1,000 to $1,500, plus disbursements — the out-of-pocket costs your lawyer incurs for title searches, registration fees, couriers, and similar items. Total legal cost including disbursements is usually in the $1,200 to $2,000 range for a straightforward transaction.
• Land Titles registration fees. Alberta does not charge a provincial land transfer tax — a real financial advantage compared to Ontario or British Columbia. What Alberta does charge are Land Titles registration fees: one to register the title transfer and one to register the mortgage. On a $500,000 to $600,000 home, these fees combined typically run approximately $1,000 to $1,300. Your lawyer handles the registration and includes these costs in your closing statement.
• Title insurance. Title insurance is a one-time premium that protects you and your lender against title defects, fraud, and issues that might not appear in a standard title search. It is not legally required in Alberta, but most lawyers recommend it and most lenders require it. The typical cost in Alberta is $250 to $350 for a standard residential property — a one-time fee that covers you for as long as you own the home.
• Property insurance. Your mortgage lender will require proof of property insurance effective on possession day before releasing funds. Alberta home insurance typically runs $1,200 to $2,400 per year for a standard detached property, though it varies by location, home age, and coverage level. Budget for at least the first year's premium or first installment.
• Property tax adjustment. On possession day, your lawyer calculates a prorated adjustment for property taxes. If the seller has prepaid taxes for the full year, you owe them a share for the portion of the year you own the property. If taxes are in arrears, the seller owes you. The amount is usually a few hundred to a couple of thousand dollars depending on timing and the property's assessed value. It shows up on your Statement of Adjustments at closing.
• Utility adjustments. Similar to property taxes — prepaid utilities or utility arrears get reconciled at closing. These are usually minor amounts.

Mortgage Default Insurance (If Applicable)

If your down payment is less than 20 percent, your lender requires mortgage default insurance — commonly called CMHC insurance, though it's also available through Sagen and Canada Guaranty. It protects the lender if you default, and it's what allows Canadians to buy with as little as 5 percent down.

The 2026 premium rates are: 4.00 percent of the mortgage amount with 5 to 9.99 percent down; 3.10 percent with 10 to 14.99 percent down; and 2.80 percent with 15 to 19.99 percent down. The premium is added to your mortgage balance — it is not typically paid as cash at closing. Alberta does not charge PST on CMHC premiums.

On a $500,000 home with 5 percent down ($25,000), the CMHC premium is approximately $19,000 — added to the mortgage, not paid upfront. It increases your total mortgage and your monthly payment, so it matters for your budget even though it isn't a cash closing cost.

Why the Property Type Matters

Closing costs don't look the same across all property types.

Condos and townhomes with condo corporations add the potential cost of a document review. Condo insurance structure also differs from a standalone home — the corporation typically insures the building, and you insure your unit contents and improvements.

New builds add GST — 5 percent on the purchase price. Most builders advertise prices net of GST, assuming buyers will qualify for the First-Time Home Buyers' GST rebate. If you don't qualify, the full GST is your cost. Confirm your eligibility and how the builder has structured the pricing before signing anything.

Acreages and rural properties may require well and septic inspections beyond a standard home inspection, title complications that increase legal fees, and in some cases an updated RPR (Real Property Report). These add up.

Resale homes in Alberta typically involve an RPR with compliance certificate — confirming property boundaries and that structures meet bylaw requirements. Sellers usually provide this, but if theirs is outdated, the cost to update it ($700 to $1,500 depending on the property) needs to be addressed in negotiations.

Questions to Take to Your Team

Before you write an offer, get answers to these:

For your mortgage broker:

• Does my situation require a lender appraisal, and what does it cost?
• Am I in a high-ratio situation? What CMHC premium rate applies?
• Are there any lender-specific requirements that affect my closing costs?

For your lawyer:

• What is your fee estimate for a residential buyer file at this price?
• What additional disbursements should I budget for this specific property?
• Does this property have any title complexity that changes your estimate?

For your REALTOR®:

• Does this property require an updated RPR? Who provides it?
• Is there a condo corporation? What documents should I request and review?
• What possession date timing might affect my property tax adjustment?

Note: This article provides general guidance on typical closing costs for Airdrie and Calgary buyers as of October 2026. Actual costs vary by property, transaction, and individual circumstances. Obtain specific estimates from a licensed mortgage professional, real estate lawyer, and home inspector for your particular purchase. This is not lending, legal, or tax advice.