Alberta’s New Land Titles Registration Levy: What Homebuyers Need To Know
Land Titles Fee Increase
The Alberta government is introducing changes that will affect all real estate transactions in the province, starting on October 20, 2024. As part of the province’s 2024-2027 Fiscal Plan, as announced in March 2024, the new Land Titles Registration Levy (the “New Levy”) will replace the existing variable fees for transferring land, registering mortgages, and some caveats that charge the land. If you’re planning to buy a home, it’s important to understand what this means for your next real estate transaction.
What Is Changing?
Currently, Alberta charges a $50 flat fee for property transfers and mortgage registrations, along with variable fees based on the value of the property or mortgage. These variable fees are being replaced by the New Levy, which increases the cost of transferring property and registering mortgages.
Here’s a breakdown of the new levy structure:
- Property transfers: The old fee was a base rate of $50 plus $2.00 per $5,000 of property value. The New Levy will change the variable fee to $5.00 per $5,000.
- Mortgage registrations and caveats charging the land: The old fee was a base rate of $50 plus $1.50 per $5,000 of mortgage value. The New Levy with the updated variable rate will be $5.00 per $5,000.
The flat fee of $50 remains unchanged, but the variable fee increase means you’ll pay more overall when buying or selling a home.
Real-World Example: Buying an $800,000 Home
Let’s consider how these changes would impact you if you buy a home valued at $800,000, with a 20% down payment. This means you’d finance $640,000 through a mortgage.
Here’s how the fees compare:
Under The Old System:
- Property transfer fee: $2.00 per $5,000
- $800,000 ÷ $5,000 = 160 increments
- $50 + (160 x $2.00) = $370
- Mortgage registration fee: $1.50 per $5,000
- $640,000 ÷ $5,000 = 128 increments
- $50 + (128 x $1.50) = $192
Total fees: $612
With The New Levy:
- Property transfer levy: $5.00 per $5,000
- $50 + (160 x $5.00) = $850
- Mortgage registration levy: $5.00 per $5,000
- $50 + (128 x $5.00) = $690
Total fees: $1,540
In this example, the fees increase by $928 due to the New Levy.
When Will The Levy Take Effect?
The New Levy comes into effect on October 20, 2024. Any complete submissions received by Alberta Land Titles before this date will be processed under the old fee structure, even if the documents are registered afterward. However, if your submission is on or after October 20, you’ll be charged the new levy.
Preparing For The Future
While the increase in fees might seem steep, Alberta continues to offer one of the most affordable real estate markets in Canada in terms of transaction costs. Whether you’re a first-time homebuyer or a seasoned real estate investor, understanding the implications of the New Levy will help you prepare for your next property purchase. You can find our updated legal fees, as a result of the New Levy, here.
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