You’ve been putting money away, keeping an eye on listings, and picturing what life could look like in a new home. Maybe it’s a place in Lacombe with a little more room, or a home closer to family in Rimbey.
Before you decide how much of your savings to put toward the down payment, there’s something I want us to talk about: closing costs.
I want you to enjoy getting your keys without wondering how you’re going to cover the other expenses that come with them. Your down payment is one part of the budget. Let’s make room for the rest.
What are closing costs?
Closing costs are expenses involved in completing your home purchase, separate from your down payment. They can include legal fees, registration charges, title insurance where applicable, and adjustments for expenses the seller has already paid.
You may also have costs earlier in the process, such as a home inspection. They still belong in your buying budget, even if you pay them before your appointment with the lawyer.
The question isn’t just “How much do I need?” It’s also “When do I need to have it available?”
What should you budget for in Alberta?
Legal fees and related expenses
Your lawyer’s bill can include their professional fee and expenses paid on your behalf. Those expenses are often called disbursements.
When you ask for a quote, ask what’s included and what could be additional. It’s much easier to plan when you know whether you’re looking at the legal fee alone or a more complete estimate.
Land title and mortgage registration
Alberta charges fees to register a property transfer and, where applicable, a mortgage. These are worth including in your budget rather than assuming your down payment covers everything.
Your lawyer can calculate the charges that apply to your purchase using the current provincial fee schedule.
Property tax adjustments
This one can catch buyers off guard. If the seller has paid property taxes covering a period after you take over the home, an adjustment may be needed so each of you pays the appropriate share.
It’s part of settling the costs between buyer and seller.
Other costs that depend on the purchase
Your budget may also need room for title insurance, an appraisal, or other property-specific expenses. Not every item applies to every home. That’s why a general checklist is a starting point, not your final invoice.
Keep moving money separate
Now think about the part after the paperwork: actually moving in.
The moving truck, utility hookups, window coverings and a few things you need right away can all compete for the same savings. These aren’t necessarily charges your lawyer will collect, but they still affect what the move costs you.
I’d suggest three separate lines in your plan:
Your down payment
Your purchase and closing expenses
Your moving and settling-in money
That makes it easier to see what’s spoken for before you start shopping for the new couch. 😊
How much should you set aside?
There isn’t one exact number I’d promise every buyer. A percentage you see online might help start a conversation, but it shouldn’t replace estimates for the home you’re buying.
Let’s work through the likely costs early. Ask your lawyer for an estimate, get quotes for services you’ll need, and leave some breathing room rather than planning to spend every available dollar.
For example, if you’ve decided what you feel comfortable putting toward the purchase, we can work backwards from that amount. Once closing expenses and moving money are accounted for, you’ll have a clearer picture of what’s available for your down payment.
When will you need the money?
Make a simple list with three columns: the expense, the estimated amount and when it’s due.
Some services may need payment before closing. Your lawyer will confirm the final amount they need from you, the deadline and how to provide it. Don’t assume everything can wait until possession day.
Let’s make the numbers feel manageable
You don’t need to know every fee before you ask questions. That’s what these conversations are for.
Whether you’re actively looking or just wondering what buying might involve, we can start with where you are. My goal is to help you understand the whole picture, not just the mortgage payment.
If you’re thinking about buying in Central Alberta, send me a message. We’ll talk through what to plan for so you can take your next step with a little more confidence.
Tara Nevers
Prairie Key Mortgages | Mortgage Architects
