Fee hikes in Thursday’s provincial budget will add more than $1,000 to the cost of buying an average home in Alberta at a time when real estate sales are plummeting.
And while one government minister suggested real estate associations were OK with higher fees for land title changes and mortgage documents, organizations contacted Friday said they were not asked about the increases.
“This comes as a surprise to us,” Wayne Copeland, president of the Canadian Home Builders’ Association-Calgary region said of the fee hikes. “In a time when people are being hit with other budget fees, increases in costs associated with daily living, layoffs and salary adjustments, it will be another burden for many.”
The province said several real estate-related fees will increase effective July 1. Among the announced changes, the transfer/title creation flat fee rises from $50 to $75, while the variable fee will jump from $1 to $6 for each $5,000 in home value. Mortgage registration fees are to increase the same amount.
On a $450,000 mortgage, that would mean an increase from $140 to $540 for each.