Alberta Mortgage Calculator 2021
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Mortgage Costs Over 5-Year Term
| Total Cost: | $117,876 |
|---|---|
| Principal | $75,298 |
| Interest | $42,578 |
Your land transfer tax could be lower if you are a first-time home buyer
| Month | Principal | Interest | |
|---|---|---|---|
June, 2021 | $450,000.00 | $1,217.71 | $746.89 |
July, 2021 | $448,782.29 | $1,219.73 | $744.87 |
Aug, 2021 | $447,562.56 | $1,221.75 | $742.85 |
Sept, 2021 | $446,340.81 | $1,223.78 | $740.82 |
Oct, 2021 | $445,117.03 | $1,225.81 | $738.79 |
Nov, 2021 | $443,891.22 | $1,227.85 | $736.75 |
Dec, 2021 | $442,663.37 | $1,229.89 | $734.72 |
Jan, 2022 | $441,433.48 | $1,231.93 | $732.68 |
Feb, 2022 | $440,201.56 | $1,233.97 | $730.63 |
Mar, 2022 | $438,967.59 | $1,236.02 | $728.58 |
Apr, 2022 | $437,731.57 | $1,238.07 | $726.53 |
May, 2022 | $436,493.50 | $1,240.13 | $724.48 |
Alberta’s Land Transfer Tax
There is no land transfer tax in Alberta, with buyers instead having to pay a property registration fee and a mortgage registration fee. The property registration fee is charged at a base of $50, with an additional $1 owed for every $5000 in purchase price. The mortgage registration fee is similar with a base fee of $50, however includes an additional $1 owed for every $5000 of your mortgage amount. This effectively saves home buyers thousands of dollars compared to other provinces with marginal land transfer taxes.
Alberta’s First Time Home Buyer Incentives
The Alberta government offers first time home buyer incentives through the Public, Essential And Key (PEAK) program. This program offers a second mortgage that is interest free for 5 years to low-income Albertans, to use for a down payment. This second mortgage can be up to 5% of the purchase price. To qualify, you will need to earn less than $80,000 per year, or $90,000 for households with children.
For those in Calgary, the city offers a program called Attainable Homes Calgary. This allows buyers with at least a $2000 down payment to be eligible for an interest free loan for the rest of their down payment.
Alberta Closing Costs
The following closing costs that are common in Alberta are:
| Costs | Description |
|---|---|
| Lawyer & Legal Fee | Having a lawyer act on your behalf for the purchase and mortgage of a property. |
| Title Insurance | To protect against any disputes about property ownership. |
| Government Registration Fee | Fees when your lawyer files official government documents on your behalf. |
| Home Inspection | To catch any potential problems with the home before closing. |
| Property Survey Fee | Cost of a property certificate that is required by your lawyer and mortgage lender. |
A major difference in home closing costs in Alberta compared to the rest of Canada is in lawyer & legal fees. Alberta, along with Ontario, requires a lawyer to act on your behalf. Depending on your lawyer, costs such as a property survey fee and government registration fee may be covered with your overall lawyer & legal fees.
Alberta Home Prices
The average home price in Alberta as of April 2021 was $439,319. This was a 21.1% increase from April 2020, when the average sale price was $362,851. This increase was much lower than the Canadian average of 42%, however was still a substantial move higher in prices. In the province's largest cities Edmonton and Calgary, the average sale price is $389,773 and $509,294, respectively.
Alberta’s Cost of Living
With Alberta being the province with the highest average income in Canada, to go along with affordable housing prices, the province is an attractive place to live on an affordability basis. However, other costs such as electricity and food are some of the highest in Canada. Alberta’s electricity rate is 16.6 cents per Kilowatt hour (KWH), above the Canadian average of 13.8 cents per KWH. The average Albertan spends $377 per month on food, above the national average of $343.
The province of Alberta showed the fastest population growth in Canada in 2020, growing by 34,213 people or 0.78%. This compares to Canada’s population as a whole only growing by 0.39% year over year.