Buying a home in St. Albert is exciting, but the financial side can feel overwhelming if you're not prepared. Beyond your mortgage payments and down payment, several other expenses deserve your attention. Getting blindsided by unexpected costs on closing day is the last thing you need when you're already juggling so much.
These costs fall into different categories. Some you'll pay once, others become part of your monthly or yearly budget, and some might not apply to your situation at all. The key is knowing what to expect so you can plan accordingly. Here's what St. Albert homebuyers should consider when building their budget:
Before You Close
Purchase Deposit: When your offer is accepted, you'll need to provide a deposit that shows you're serious about the purchase. This amount typically gets applied to your down payment at closing.
Home Inspection: Hiring a certified building inspector protects you from costly surprises down the road. They'll examine the property's condition and identify any issues that need addressing. In St. Albert's variable climate, this step is especially important for spotting potential problems with heating systems, insulation, and weather-related wear.
Property Appraisal: Your lender will likely request an appraisal to confirm the home's market value matches your purchase price. You're responsible for this cost, which helps the bank determine how much they're willing to lend.
Land Survey: If you're buying a resale home, your lender may require an updated survey showing the property's exact boundaries and any structures on it. Budget between $700 and $1,000 for this service. New construction typically includes a current survey.
Mortgage Application Fees: Your financial institution may charge fees to process your mortgage application. Ask about these upfront so you're not caught off guard.
Legal and Tax Obligations
Legal Fees: Every real estate transaction in Alberta needs a lawyer to review contracts and handle the title transfer. Rates vary significantly between firms, so speaking with a few different lawyers before choosing one makes sense. They'll also handle property tax adjustments and ensure everything's properly registered.
Property Insurance: Before your lender releases any funds, you'll need home insurance that covers at least your mortgage amount. St. Albert's weather patterns mean you'll want comprehensive coverage that includes protection against hail damage, a common concern in Alberta.
Land Transfer Tax: While Alberta doesn't have a provincial land transfer tax like some other provinces, you'll still need to register the title transfer. Your lawyer typically handles this as part of their services.
GST on New Homes:If you're buying new construction or a home with major recent renovations, expect to pay 5% GST. Some buyers qualify for a partial GST rebate, which your lawyer can help you claim.
Moving and Settling In
Moving Costs:Whether you're hiring professional movers or renting a truck, factor moving expenses into your budget. If you're moving to St. Albert from Edmonton or another nearby community, you might face additional costs for weather-related delays or special handling during winter months.
Utility Connections: Setting up services like electricity, natural gas, water, internet, and cable often includes connection or installation fees. Contact providers early to schedule service for your possession date.
Interest Adjustments: If your possession date falls between mortgage payment dates, you'll need to pay interest for those extra days. Your lawyer will calculate this amount.
Immediate Renovations: Many St. Albert homeowners want to personalize their space before moving in. If painting, flooring updates, or other renovations are part of your plan, include these costs in your initial budget rather than scrambling to fund them later.
Ongoing Expenses
Property Taxes: St. Albert property taxes fund local services and infrastructure. Your annual amount depends on your property's assessed value. Some homeowners choose to include property tax payments in their monthly mortgage through a tax installment plan.
Condo Fees: Buying a condominium means paying monthly maintenance fees that cover common area upkeep, building insurance, and sometimes utilities. These fees vary widely depending on the building's amenities and age, so review the condo documents carefully before making your offer.
Home Maintenance: Even well-maintained homes need regular upkeep. Setting aside money each month for routine maintenance and unexpected repairs prevents financial stress when your furnace needs servicing or your roof requires attention.
Planning Your Budget
Creating a realistic budget means looking at both your immediate costs and long-term expenses. Start by listing which items from above apply to your purchase, then get actual quotes where possible. Working with experienced St. Albert real estate agents and mortgage brokers can help estimate costs specific to your situation.
Remember that St. Albert's strong community and excellent amenities make it a wonderful place to call home. Located just 15 minutes from Edmonton, St. Albert offers the perfect balance of small-town charm and big-city convenience. Taking time now to understand and plan for all the associated costs means you'll be able to enjoy your new neighbourhood without financial worry hanging over you.
Consider building a small buffer into your budget for unexpected expenses. Real estate transactions sometimes surprise even experienced buyers, and having that cushion provides peace of mind during what should be an exciting time in your life.
If you're feeling uncertain about any of these costs or how they apply to your specific situation, reaching out to local professionals makes sense. St. Albert's real estate community includes experienced agents, mortgage brokers, lawyers, and inspectors who understand local market conditions and can provide guidance tailored to your needs.
Ready to start your home search? Browse current St. Albert homes for sale or contact our team to discuss your home buying goals. With over 60 years of experience serving the St. Albert community, we're here to help make your home buying journey as smooth as possible.