Alberta Mortgage Fees Going Up This Summer: Alberta Budget 2015

[Mortgage Made Easy]

In case you missed this post yesterday, I am posting in this section as well.

This summer, it’s going to cost more to get a mortgage in Alberta starting July 1, 2015.

People considering buying a house this summer should be aware of some changes to the fees associated with being a land owner, and with getting a mortgage. Last week, the Province of Alberta released its new budget containing pretty significant increases in fees for people like you who might be getting a Calgary mortgage or buying property.

Ex: $500,000 purchase and a mortgage of $400,000 currently costs approx. $290 for land titles and mortgage registration.

Effective July 1, 2015 that same registration will cost approx. $1,230.

A difference of $940.

Read More on this and other AB Budget fee hikes!

[troutman]

Land Title fees are going up (transfers and mortgages). I should have a blog up tomorrow about it.

[MoneyGuy]

Troutman, how do we find your blog?

[polak]

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[#-3]

I want to ask to be sure, this does not include renewals correct?

It doesn't make sense that it would, but I feel like I should ask the stupid question to make sure I am not wasting $1000.

[Mortgage Made Easy]

Originally Posted by #-3

I want to ask to be sure, this does not include renewals correct?

It doesn't make sense that it would, but I feel like I should ask the stupid question to make sure I am not wasting $1000.

Correct.. there is no changes to renewals or switches. Lenders cover these fees if they apply.

[Mortgage Made Easy]

Here is the link to the Alberta Services site showing the changes.

Alberta.ca

[troutman]

http://nwcalgarylaw.com/alberta-budg...-fee-increase/

A new budget for Alberta was announced on March 26, 2015. Effective July 1, 2015, land title fees will be increased.

Land Title Fee Increases

• The flat fee for mortgages, transfers and leasehold titles will increase by $25.
• The variable fee for mortgages, transfer and leasehold titles increases with the value of a property or mortgage. The fee will increase from $1 to $6 for every $5,000 in value.
• These fees are only paid when acquiring a new property and new mortgage.

How will the increased fees impact the closing costs of typical real estate transactions? Here are some examples:

1. Purchase Price $400,000.00 Mortgage amount $375,000.00
Current Land Titles fees: $255.00
New Land Titles Fees $1,080.00

2. Purchase Price $500,000.00 Mortgage Amount $475,000.00
Current Land Titles fees: $295.00
New Land Titles Fees $1,320.00

3. Purchase Price $600,000.00 Mortgage Amount $575,000.00
Current Land Titles Fees $335.00
New Land Titles Fees $1,560.00

Budget: Dramatic fee hikes coming to real estate market

While registration fee hikes bring Alberta much closer to the national average, it’s still well below what homebuyers pay in provinces with land transfer taxes. That same $500,000 property would come with an $8,000 transfer tax in Vancouver, $7,500 in Halifax, and $12,200 in Toronto, according to ratehub.ca, a financial comparison website.

Please contact us at (403) 288-0009 if you have any questions about land title fees.