Are you planning to buy property in Alberta? Starting October 20, 2024, be prepared for a significant shift in land title registration costs due to the introduction of a new Land Titles Registration Levy.
What Is Changing?
The province of Alberta is introducing a new Land Titles Registration Levy, announced in Budget 2024, to replace the current Variable Fees for transferring land and registering mortgages. Under the new structure, buyers will face a flat levy of $5.00 per $5,000 of property value AND $5.00 per $5,000 of mortgage value, along with a $50 flat fee for each, affecting land transfers, mortgage registrations, and certain caveats.
How will this affect you as a buyer?
Previously, land transfers incurred a fee of $50 plus $2.00 for every $5,000 of property value, while mortgage registrations cost $50 plus $1.50 for every $5,000 of the mortgage amount. With the new levy, the costs will increase significantly. For example, a typical transaction involving a $500,000 home with a $450,000 mortgage would cost around $435 under the current fee structure. After the levy is implemented, the same transaction will cost $1,050—more than double the previous cost.
Submission Timing
It is essential to note that submissions made to the Land Titles Office before October 20 will still be processed under the old variable fees, even if the registration concludes after that date. However, any submissions made on or after October 20 will be subject to the new levy. In Summary
Although the increase in fees may not be welcome news, Alberta will continue to have Canada's lowest title transfer fees. These changes also highlight the importance of staying informed about evolving real estate regulations and costs. Real estate is not one-size-fits-all, and as such, our agents are ready to meet you where you are at, with a custom approach, whether this is your first step towards owning a home or one of many real estate moves. Have questions? We’d love to help! Contact us today.
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