Buying a home in Calgary is an exciting milestone, but many buyers underestimate the hidden costs that come with homeownership. Beyond the down payment and mortgage payments, there are several additional expenses that can catch buyers off guard.
To help you budget effectively, we’ll break down the hidden costs of buying a home in Calgary, so you know exactly what to expect before signing on the dotted line.
- Mortgage Insurance (CMHC Insurance) – Required for Low Down Payments
If you’re putting less than 20 percent down on your home, you’ll need to pay for Canada Mortgage and Housing Corporation (CMHC) insurance. This protects the lender in case you default on your mortgage.
How Much Does CMHC Insurance Cost?
The cost is based on the size of your down payment:
- 5 percent down payment → CMHC premium = 4.00 percent of mortgage amount
- 10 percent down payment → CMHC premium = 3.10 percent of mortgage amount
- 15 percent down payment → CMHC premium = 2.80 percent of mortgage amount
For example, if you buy a 500,000 home with a 5 percent down payment (25,000), your mortgage amount would be 475,000, and your CMHC insurance cost would be:
475,000 × 4.00 percent = 19,000 (added to your mortgage)
Learn more: CMHC Insurance Calculator
- Property Taxes – Ongoing Annual Costs
In Calgary, homeowners must pay annual property taxes to the city, which go toward schools, emergency services, and city maintenance.
How Much Are Property Taxes in Calgary?
The City of Calgary’s 2025 property tax rate is approximately 0.74 percent of the home’s assessed value.
For a 500,000 home, expect to pay:
500,000 × 0.74 percent = 3,700 per year (or 308 per month)
Tip: If you have a mortgage, lenders often allow you to include property taxes in your monthly payments for convenience.
Check your estimated property tax bill: City of Calgary Property Tax Estimator
- Home Inspection – A Must Before You Buy
A professional home inspection helps identify potential issues before you finalize your purchase. Even new homes can have hidden problems like:
- Structural issues
- Roofing concerns
- Plumbing or electrical problems
How Much Does a Home Inspection Cost?
Expect to pay 400 to 800 depending on the size and age of the home.
Tip: A home inspection can save you thousands in unexpected repairs down the road.
Find a certified home inspector: Alberta Professional Home Inspectors Society (APHIS)
- Legal Fees – Closing Costs You Can’t Skip
When buying a home in Calgary, you’ll need a real estate lawyer to handle the legal paperwork, review contracts, and transfer ownership.
How Much Do Real Estate Lawyers Charge?
1,500 to 2,500 (includes title transfer, legal documents, and land title registration)
Tip: Choose a lawyer experienced in real estate transactions to ensure a smooth closing process.
Find a real estate lawyer in Calgary: Law Society of Alberta
- Title Insurance – Protecting Your Ownership Rights
Title insurance protects buyers from potential property title issues, such as fraud, errors in public records, or disputes over ownership.
How Much Does Title Insurance Cost?
250 to 400 (one-time fee at closing)
Tip: While not mandatory, most mortgage lenders require title insurance as an added protection.
Learn more about title insurance: FCT Title Insurance
- Land Transfer Tax – Good News for Alberta Buyers
Unlike other provinces like Ontario and British Columbia, Alberta does not have a land transfer tax. Instead, buyers pay a land title registration fee, which is much lower.
How Much Are Land Title Fees in Calgary?
50 base fee plus 2 per 5,000 of property value
For a 500,000 home, the land title registration cost would be:
50 + (500,000 ÷ 5,000 × 2) = 250
Tip: This makes homeownership more affordable in Alberta compared to other provinces.
Estimate your land title fees: Alberta Land Titles Office
- Moving Costs – Don’t Forget This Expense
Whether you’re moving across Calgary or from another province, moving costs can add up.
Typical Moving Expenses
- Local move: 1,000 to 2,500
- Long-distance move: 5,000 plus (depending on distance)
- Storage unit (if needed): 100 to 300 per month
Tip: Save money by renting a moving truck or asking friends for help.
Compare moving quotes: Move Canada
- Home Insurance – A Requirement for Mortgage Approval
Lenders require home insurance before approving a mortgage, and it’s essential for protecting your investment.
How Much Does Home Insurance Cost in Calgary?
800 to 2,000 per year (varies based on home size, location, and coverage)
Tip: Bundling home and auto insurance can help reduce costs.
Compare home insurance rates: Ratehub.ca
- Utility Hookups and Monthly Bills
Setting up utilities in your new home involves initial deposits and monthly costs for:
- Electricity and Gas – 150 to 300 per month
- Water and Sewer – 50 to 100 per month
- Internet and Cable – 80 to 200 per month
Tip: Check with providers for new customer promotions.
Compare energy rates: Energyrates.ca
- Ongoing Maintenance and Repairs
Unlike renting, homeowners must cover all maintenance and repair costs. Some common expenses include:
- Furnace servicing: 150 to 300 per year
- Plumbing repairs: 100 to 1,000 plus per issue
- Roof replacement: 5,000 to 15,000 (every 15 to 25 years)
- Appliance repairs or replacement: 500 to 3,000
Tip: Budget 1 to 2 percent of your home’s value annually for maintenance costs.
Final Thoughts: Plan for Hidden Costs Before Buying
While homeownership in Calgary offers many benefits, it comes with more than just mortgage payments. Planning for these hidden costs can help prevent financial stress and ensure a smooth transition into your new home.
Before buying, ask yourself:
- Do I have enough savings for closing costs?
- Can I afford property taxes and maintenance?
- Have I budgeted for home insurance and utilities?
For expert guidance, work with a trusted Calgary real estate agent and mortgage professional to understand all the costs involved.
Helpful Resources for Calgary Home Buyers
- Calgary Real Estate Board (CREB) – Market insights and listings
- CMHC – Mortgage insurance details
- Alberta Land Titles – Title registration info
Thinking of buying a home in Calgary? Get in touch with a local expert today!
