When buying a home in a major Canadian city, you will often have to pay a tax called the Land Transfer Tax or sometimes referred to as Property Purchase Tax. The tax is usually calculated as a percentage of the purchase price and the formula varies from province to province.
Since I get this question asked often:
Alberta DOES NOT have a Land Transfer Tax
(that was easy!)
While Alberta does not levy a land transfer tax, there are nominal registration fees. The land transfer registration fees and mortgage registration fees are based on the purchase price and mortgage amount being registered.
According to the Tariff of Fees Regulation, Alta. Reg. 120/2000, the registration fee is $50, plus $1 for every $5,000 of the property value; if there is a mortgage, another $50, plus $1 for every $5,000 of the mortgage amount, is due.
Let’s say you’ve purchased a $400,000 home that has a $300,000 mortgage. Here’s how it would be calculated:
Land Title Transfer
Mortgage Registration on Title
The cost is nominal and nowhere near how much buyers have to pay in other provinces such as Ontario or B.C.