Alberta Budget: It's Way More Expensive to Buy Real Estate Now

The recent Alberta government budget created a lot of buzz. It even resulted in an early election campaign to garner support and a 'mandate'. But a few little line items in the budget that you may not have heard too much about were the significant increases in government fees - some increases are in the order of 600%.

If you are buying a home and close after July 1st, 2015 you'll be in store for a bit of a shock when your lawyer fills you in on what the 'closing costs' are going to be. For example, if you are buying a home worth $500,000 and placing a mortgage of $400,000, your disbursement costs will go up by over $1000.00. So a closing in June might result in legal fees, GST, and disbursements of roughly $1200 - but the same transaction that closes in July will result in closing costs of over $2200. Your lawyer's fees now represent less than 40% of your overall closing costs. So when you are choosing a lawyer, choose one that comes with a recommendation, who has experience, who does a lot of real estate - and not one that gives you a a 2-4% discount off your closing costs.

And remember to vote . . . .

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