Beyond the down payment, Edmonton buyers need closing funds for legal fees and disbursements, land title registration, an appraisal where required, a home inspection, property tax and utility adjustments, and CMHC insurance taxes where applicable — and lenders commonly check that you hold roughly 1.5% of the purchase price for closing costs on top of your down payment. Buyers who budget only the down payment discover these costs in the worst week of the process: the one before possession. See how much house you can afford once closing costs are in the math.

What are the main items, in the order you will meet them?

The inspection comes first, during your condition period, paid directly to the inspector. The appraisal, if your lender requires one, is arranged during financing and sometimes deducted at funding. Legal fees and disbursements are settled with your lawyer before possession and include the land titles registration of the transfer and mortgage — Alberta’s registration fees are calculated on the property value and mortgage amount, so they scale with price. Adjustments reimburse the seller for prepaid property taxes or condo fees beyond possession day, and a tax account or utility deposits may be required depending on the property and your providers. On insured mortgages, the provincial sales tax on the CMHC premium where it applies is due at closing and cannot be added to the mortgage — a line item that surprises buyers who assumed the whole premium was financed. On a new build, GST on a new home: the closing cost that isn’t in most budgets. For the premium itself, see CMHC premiums and the tax charged on them.

Why does the 1.5% check matter to your approval?

Because it is part of the approval, not just budgeting advice: lenders verify funds to close — the down payment plus closing costs, sourced with the same paper trail as the down payment itself. Money that appears late, moves between accounts without explanation, or sits in someone else’s name triggers the same source-of-funds questions as the down payment does. Keep closing funds in the same documented accounts, and do not spend the buffer on furniture before funding.

“Great rates, fast closing, and excellent customer service.” — Madhav Dhakal, Google review

Photo via Wikimedia Commons.

How much should an Edmonton first-time buyer actually set aside?

Use the verified anchors you have: your lawyer’s written estimate, your lender’s appraisal requirement, and the property’s tax and condo-fee position — then hold the 1.5% guideline as the floor, not the ceiling, especially on older homes where immediate post-possession work is likely. The First Home Guide for Edmonton sequences these costs against the rest of the purchase, and if you are refinancing or renewing instead, run a Mortgage Renewal Check — closing-cost logic applies there too, and it is where switch costs are often covered or not.

Want your full funds-to-close number — down payment plus every closing item — before you start touring? Call me at (780) 722-5621 and we will build it line by line. Or follow the first-time buyer journey, with closing day at the end, or start with the Pre-Approval & Refinance Check.

By Travis Bannert, Realtor and Mortgage Broker

Travis Bannert, Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | (780) 722-5621 | nextdoormortgages.com