Land Transfer Tax
Because you live in Alberta, land transfer taxes (or property purchase tax) are NOT part of the deal.
Purchasers in most large Canadian cities need to budget a significant amount for Land Transfer Taxes in their list of closing costs.These taxes, levied on properties that are changing hands (changing Title), are the responsibility of the purchaser. Depending on where you live, Land Transfer Taxes can range from half of a percent to two percent of the total purchase price!
In Alberta, the formula to determine the cost to Register the Transfer of Title of your property; as well as the Registration of your Mortgage, are the same.
The formula is:
$50.00 plus $1.00 for every $5000.00 of property (or Mortgage) value.
Therefore; a $250,000 property value would have title transfer costs of $100.00 and, at the other extreme; a $1,000,000 value would have title transfer costs of $250.00.
As a benchmark example; the cost to register a transfer of property, and to register a mortgage on that property, would be as follows:
Using a property cost of $500,000.00 and a mortgage amount of $400,000.00;
the Purchaser would be charged $150 and $130 respectively - for a total of $280.00.