Unlike other Canadian provinces that impose high land transfer taxes, Alberta implements a more affordable fee structure known as land title transfer fees. This guide explores these fees and highlights significant changes that will take effect on October 20, 2024, to help you navigate your real estate transaction successfully.
Alberta Land Transfer Fee Calculator
Our Land Transfer Tax Alberta Calculator provides accurate calculations based on the latest fee structures.
Property Registration Fee: $0
Mortgage Registration Fee: $0
Total Fee: $0
What Is Alberta Land Transfer Tax?
Alberta does not have a Land Transfer Tax. Instead, it charges a fee called the Land Titles Transfer Fee (LTTF) when property ownership changes. This fee is significantly lower than the land transfer taxes in provinces such as Ontario and British Columbia, making Alberta an appealing option for real estate investment.
The land title transfer fee in Alberta has two components:
- Land Registration Cost on the property value
- Mortgage Registration Cost on the mortgage amount
Both components include a base fee of $50 plus a variable amount calculated based on the property’s purchase price and mortgage value.
How Is the Alberta Land Title Transfer Fee Calculated?
On September 27, 2024, the Government of Alberta announced significant increases to the land title transfer fees, taking effect on October 20, 2024. These increases represent the first adjustment to registration fees since 2019.
| Land Title Transfer fee (Before Oct 20, 2024) | New Land Title Transfer fee | |
|---|---|---|
| Land Transfer Registration Fee | $50 base fee + $2 per $5,000 of property value (or portion thereof) | $50 base fee + $5 per $5,000 of property value (or portion thereof) |
| Mortgage Registration Fee | $50 base fee + $1.50 per $5,000 of mortgage amount (or portion thereof) | $50 base fee + $5 per $5,000 of mortgage amount (or portion thereof) |
Source: New land transfer and mortgage registration levy comes into effect in Alberta – CBC
How does the October 2024 Fee Increase Impact your Purchase?
The October 2024 fee increase will substantially raise the closing costs associated with property purchases in Alberta. Buyers can expect to pay more than double the current fees for most residential transactions.
For example, if you purchase a 400,000 property with a 320,000 mortgage (80% loan-to-value ratio) before October 20, 2024, the total fee you need to pay is calculated as follows:
- Fee on property value: $50 + ($2 × 80) = $210
- ($400,000 ÷ $5,000 = 80 portions)
- Fee on mortgage amount: $50 + ($1.50 × 64) = $146
- ($320,000 ÷ $5,000 = 64 portions)
- Total land title transfer fee: $210 + $146 = $356
After October 20, 2024, the fee would be:
- Fee on property value: 50+ 5* 80 = $450
- (400,000÷5,000 = 80 portions)
- Fee on mortgage amount: 50+ 5 * 64 = $370
- (320,000÷5,000 = 64 portions)
- Total land title transfer fee: $450 + $370 = $820
This represents a 130% rise in the total fees compared to the current structure, significantly increasing closing costs that buyers must account for in their budgets. The impact will be even more pronounced for luxury effects or commercial real estate transactions.
When Do You Need to Pay the Land Title Transfer Fee In Alberta?
The land title transfer fee is paid when your legal documents are submitted for registration with the Alberta Land Titles Office. This typically occurs on the closing day of your real estate transaction. Your real estate lawyer or notary handles this payment as part of the closing process.
The fees are paid directly to the Alberta Land Titles Office when your lawyer submits the transfer of land documents and mortgage registration. The amount will be included in the closing costs statement provided by your legal representative, and you’ll need to have these funds available before closing.
Are There Any Rebates or Exemptions Available on Alberta LTTF?
Unlike several other Canadian provinces, Alberta does not offer any rebates or exemptions on land transfer fees for first-time homebuyers or any other buyer category.
Major Alberta municipalities, including Calgary and Edmonton, do not impose additional municipal land transfer taxes or fees. This contrasts with cities like Toronto, which charges its own municipal land transfer tax and the provincial tax.
While the absence of rebates might seem disappointing, it’s worth noting that even with the upcoming fee increases, Alberta’s land title transfer fees remain significantly lower than the land transfer taxes in provinces like Ontario, British Columbia, and Quebec.
Explore the how different regions in Canada charge their Land Transfer Tax with our detailed guides:
Land Transfer Tax Alberta FAQs
What is the difference between Alberta's land title transfer fee and land transfer tax in other provinces?
Alberta uses a land title transfer fee system rather than a land transfer tax. The key difference is in the rate structure and overall cost. Alberta's fees are significantly lower than the land transfer taxes charged in provinces like Ontario and British Columbia. For example, a $500,000 property in Alberta would incur about $550 in fees (after October 20, 2024), while the same property in Ontario might face land transfer taxes of approximately $6,475.
Why is Alberta increasing its land title transfer fees?
The Government of Alberta announced the fee increases as part of its 2024 fiscal year budget. While specific justifications weren't detailed in the announcement, government fee increases typically aim to increase revenue, cover administrative costs, or align with market conditions. Alberta's fees remain lower than land transfer taxes in many other Canadian provinces despite the increase.
Do I need to pay land title transfer fees if I inherit a property in Alberta?
Yes, land title transfer fees apply when property is transferred through inheritance, even though no purchase price is involved. In these cases, the fee is typically calculated based on the property's fair market value at the time of transfer. The estate executor is usually responsible for ensuring these fees are paid during the property transfer process.
Can land title transfer fees be added to my mortgage in Alberta?
No, land title transfer fees cannot be added to your mortgage amount in Alberta. These fees must be paid upfront as part of your closing costs. You'll need to have these funds available before your transaction closes, along with your down payment and other closing costs like legal fees.
What happens if land title transfer fees aren't paid in Alberta?
If land title transfer fees aren't paid, the Alberta Land Titles Office will not register the transfer of land or mortgage. This effectively means the legal ownership of the property cannot change hands, and the transaction cannot be completed. Your lawyer will ensure these fees are paid as part of the closing process to prevent any issues with your property purchase.
The Bottom Line
Alberta’s land title transfer fee system continues to offer a more affordable alternative to the higher land transfer taxes found in many other Canadian provinces, even with the substantial increases taking effect on October 20, 2024. Understanding these fees and planning is crucial for successful real estate transactions in Alberta.
Contact our team of mortgage professionals for the most current information on Alberta’s land title transfer fees and other aspects of the home-buying process.
