No Provincial Land Transfer Tax
This is one of Alberta's most significant financial advantages for home buyers. Unlike Ontario (up to 2.5%) or BC (up to 5%), Alberta buyers pay only a small Land Title Transfer Fee administered by the Alberta Land Titles Office. See how this shapes affordability in Calgary and Edmonton → On a $500,000 home this fee is approximately $500–$700 — a fraction of what buyers pay in other provinces.
GST on New Construction
Alberta has no provincial sales tax (PST), which means no PST on CMHC insurance premiums and no provincial component on new home purchases. However, the federal 5% GST applies to newly built homes. Resale homes are GST-exempt.
For new construction, the federal GST new housing rebate returns a portion of GST on homes priced up to $450,000. On homes above that threshold, buyers pay the full 5% GST. Builder pricing may or may not include the rebate — always confirm in the purchase agreement whether the listed price is GST-inclusive or exclusive.
Alberta Closing Costs Breakdown
Alberta has the lowest closing costs in Canada — typically just 0.5–2% of the purchase price for a resale home. Key items include:
- Land Title Transfer Fee — ~$500–$700 on a $500,000 home (government fee, not a tax)
- Mortgage Registration Fee — approximately $500 (registered by your lender)
- Legal / Lawyer Fees — $1,200–$2,000 for a standard purchase
- Home Inspection — $400–$600
- Title Insurance — $200–$400; recommended
- Property Tax Adjustment — prorated at closing
- No PST on CMHC Premium — Alberta does not add provincial tax to CMHC insurance
Alberta Mortgage Tips
CMHC Insurance Still Required Under 20% Down
Alberta's no-LTT advantage does not remove the federal CMHC mortgage insurance requirement. If your down payment is less than 20%, CMHC insurance is mandatory and adds 2.8%–4.0% to your mortgage balance depending on your down payment amount. The good news: Alberta charges no PST on this premium, unlike Ontario and Quebec.
Alberta Courts and Borrower Protections
Alberta's foreclosure process (called a "foreclosure order nisi") generally provides more time for borrowers in default than some other provinces. While you should never rely on this as a financial strategy, Alberta's legal framework is considered relatively borrower-friendly. Consult a real estate lawyer for details relevant to your situation.
Energy-Efficient Homes and Mortgage Products
Alberta's energy costs and heating requirements make energy efficiency a real financial factor. Several lenders offer green mortgage products with slightly reduced rates or higher insured amortizations for ENERGY STAR or Built Green certified homes. Ask your broker about these options if you are buying a newer build.
Maximize the Low-Cost Advantage with a Larger Down Payment
Because Alberta's closing costs are so low, first-time buyers often have more flexibility to put savings toward a larger down payment rather than holding cash for closing. Getting from 5% to 10% down saves approximately 0.4% in CMHC premiums on a $500,000 mortgage — nearly $2,000 — that is no longer added to your balance.
Key Programs for Alberta Buyers
First Home Savings Account (FHSA)
The federal FHSA is fully available to Alberta buyers. Contribute up to $8,000 per year (max $40,000 lifetime) in a registered account. Contributions are tax-deductible; qualifying withdrawals are tax-free. Combined with Alberta's no-LTT advantage, this gives Alberta first-time buyers one of the most cost-efficient paths to homeownership in Canada. Full FHSA guide →
RRSP Home Buyers' Plan (HBP)
Withdraw up to $35,000 per person ($70,000 per couple) from your RRSP tax-free for a first home purchase, repayable over 15 years. Alberta has no provincial supplement to this federal program, but the base program is still highly valuable. Alberta's relatively affordable home prices compared to BC and Ontario mean the HBP can fund a larger share of the required down payment. How the HBP works in 2026 →
No Provincial First-Time Buyer Programs
Alberta does not currently offer a provincial first-time home buyer grant or down payment assistance program. However, the elimination of the land transfer tax is in itself a structural subsidy worth $8,000–$20,000 on most purchases compared to Ontario or BC. Federal programs (FHSA, HBP, First Home Buyer's Tax Credit) remain fully available.
Frequently Asked Questions — Alberta
Does Alberta really have no land transfer tax? +
Correct. Alberta does not levy a provincial land transfer tax. There is a Land Title Transfer Fee (a government administration fee, not a tax) of a few hundred dollars, but this is negligible compared to LTT in other provinces. It is one of the primary financial reasons Alberta attracts interprovincial migrants from Ontario and BC.
Do I pay PST on CMHC insurance in Alberta? +
No. Alberta has no provincial sales tax (PST), so there is no provincial surcharge on CMHC mortgage default insurance premiums. You only pay the federal CMHC premium itself, which can be added to your mortgage balance. This saves Alberta buyers several hundred to over $1,000 compared to purchasing the same home in Ontario or Quebec.
Is GST charged on resale homes in Alberta? +
No. GST does not apply to resale residential properties in Canada, including Alberta. GST (5%) applies only to newly built homes and is a federal tax — not unique to Alberta. If purchasing a new construction home, confirm whether the builder's advertised price is GST-inclusive or exclusive before signing any agreement.
What is the Alberta land title transfer fee on a $700,000 home? +
The Alberta Land Titles Transfer Fee is calculated using a sliding scale based on the home's value. On a $700,000 property, the title transfer fee is approximately $600–$700. Your lender also registers the mortgage — the mortgage registration fee adds another ~$500. Total government fees are roughly $1,100–$1,200 on a $700,000 purchase, compared to $14,000+ in LTT that would apply in Ontario or BC.
Can I use both the FHSA and the HBP for my first home in Alberta? +
Yes. These are complementary federal programs with no restriction on using them together. An Alberta couple can combine up to $40,000 each from FHSA + $35,000 each from HBP = up to $150,000 total from registered accounts for a down payment. On a $500,000 Calgary home requiring a 5% minimum down payment, this easily covers both the down payment and a comfortable cash buffer for closing costs.
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