As of October 20, the Alberta government has introduced a new land titles registration levy that significantly increases fees for land transfers and mortgage registrations. This adjustment, announced in the provincial budget earlier this year, has come as a surprise to many Albertans, especially those planning to buy property or refinance their mortgages.
What’s Changed?
Under the new levy structure, Albertans will continue to pay a $50 flat fee, but the variable fees have seen a sharp rise:
- Land Transfers: The variable fee has increased from $2 per $5,000 of property value to $5 per $5,000.
- Mortgage Registrations and Caveats: For charges against the land, the variable fee has increased from $1.50 per $5,000 of mortgage value to $5 per $5,000.
For instance, land title registration fees for a property valued at $450,000 with a mortgage of $405,000 have jumped from $401.50 to $955 — an increase of 138%. Many prospective buyers and homeowners in Alberta have expressed frustration at this unexpected additional cost.
Why the Increase?
The Alberta government explains that these increased fees are intended to meet the needs of the province’s growing population and fund essential upgrades to the land titles office. Brandon Aboultaif, press secretary for the minister of Service Alberta and Red Tape Reduction, states that the levy is expected to generate around $90 million per year. This revenue will support the modernization of the land titles office, addressing processing delays that have impacted real estate transactions.
In 2022, delays at the land titles office were causing transactions to be held up for over 80 days. While the government cleared the document backlog in December 2023, current processing times remain longer than pre-2021 levels.
A Broader Perspective: How Alberta Compares
While the levy has drawn criticism, the Alberta government emphasizes that the province’s registration fees remain among the lowest in Canada. Alberta’s fees are one-fifth of the national average and 40% lower than Saskatchewan’s, the next most affordable jurisdiction.
For buyers from Ontario and British Columbia, where land transfer taxes and registration fees are much higher, Alberta’s costs still represent a significant saving. Many new Albertans are relocating from these high-cost provinces, and for them, Alberta’s fees — even with the increase — remain relatively affordable.
What Does This Mean for You?
For Albertans planning to buy property or refinance, it’s important to budget for these new costs. While the levy may feel like a setback, the increased fees are being channeled into improvements in the land titles office to hopefully streamline property transactions in the future.
Please note: This new levy will be added to the legal fees when closing a purchase.
If you’re navigating these new fees or have questions about your mortgage options, our team at Canadian Mortgage Professionals is here to help. We can provide clarity on what these costs mean for you and guide you through each step of the home-buying process. With our local expertise, we’ll ensure you have all the information you need to make informed financial decisions in Alberta’s evolving market.
Feel free to reach out to us with any questions or for personalized mortgage advice. We’re here to make your journey to homeownership as smooth and stress-free as possible.
