Closing Day Math: Why Your Final Bill Might Be Different (And Why That's OK)

February 6, 2026 | Posted by: Matt Broom-Hall

Closing Day Math: Why Your Final Bill Might Be Different (And Why That's OK)

Sarah sat in her Calgary condo, staring at her closing statement like it was written in ancient Greek.

She thought she was paying $425,000 for her new place. But the final number? $426,642.

'Did someone mess up the math?' she wondered, her stomach dropping.

Spoiler alert: Nope. Welcome to the wild world of closing adjustments.

If you're buying your first home in Alberta, that closing statement might look like someone spilled alphabet soup on a spreadsheet. But here's the good news: those extra charges aren't a mistake. They're not someone trying to slip extra cash out of your pocket. They're actually pretty logical once you understand how Alberta real estate transactions work.

Let's break it down.

What Are Closing Adjustments (And Why Do They Exist)?

Think of closing adjustments like splitting a restaurant bill fairly.

When you and the seller 'break up' on closing day, you need to figure out who owes what for all the ongoing expenses tied to the house. The seller has been living there, paying for things like property taxes, utilities, and condo fees. But since you're taking over partway through billing cycles, you need to reimburse them for what they've already paid that covers your time in the house.

When you're closing your property, your real estate lawyer will hand you a document called the Statement of Adjustments. It's basically an accounting document that shows every single credit and debit related to your closing. Within that statement, you'll see all the cost adjustments clearly laid out.

Pro Tip: Reading and reviewing your Statement of Adjustments is critical. Don't just skim it. Sit down with your lawyer and go line-by-line. You deserve to understand every dollar.

The Big Players: What You'll Typically See Adjusted

Property Taxes (The Big One)

This is usually the largest closing adjustment you'll encounter in Alberta. Here's why it gets a bit weird: property taxes work differently depending on where you live.

In Calgary and Edmonton, many homeowners use the Tax Installment Payment Plan (TIPP), where property taxes are paid monthly. In smaller cities like Red Deer or Lethbridge, you might see annual or semi-annual payments. Either way, the seller has likely paid ahead, and you need to reimburse them for your portion.

Sarah's Story Continued: Sarah's condo had annual property taxes of $2,800. The seller had already paid the full year upfront in January, but Sarah was closing in June. That means the seller had pre-paid for 6 months of Sarah's ownership (July through December).

The math: $2,800 ÷ 12 months = $233/month × 6 months = $1,398 that Sarah owes the seller.

See? Not a mistake. Just math.

Condo Fees/Maintenance Fees

If you're buying a condo or townhouse in Calgary, Edmonton, or anywhere else in Alberta, monthly maintenance fees are almost always adjusted.

Real Example: Marcus bought a condo near Calgary's Beltline with $525 monthly maintenance fees. He closed on the 18th of the month, but the seller had already paid the full month's fee. Marcus owed the seller for the remaining days: roughly $525 × (12 days ÷ 30 days) = $210.

Utilities and Fuel (The Rural Alberta Wildcard)

This one depends on your area and the type of utilities. In urban areas, you might see adjustments for water bills or natural gas deposits. But in rural Alberta? Things get interesting.

Rural Alberta Story: When Jamie bought a farmhouse outside Red Deer, the propane tank was 60% full. At current propane prices, that represented about $850 worth of fuel that the seller had paid for but Jamie would use.

Closing adjustment: +$850 to Jamie's closing costs.

If you're buying a property with a septic system, well water, or fuel tanks, expect to see these kinds of adjustments.

Rent (For Multi-Unit Properties or Basement Suites)

Buying a duplex in Edmonton? A house with a legal basement suite in Calgary? If there's a tenant paying rent, you might get credited for rent collected in advance.

Example: If your tenant has already paid $1,200 for the month and you close on the 10th, the seller owes you for the remaining 20 days of that month. That's roughly $800 credit in your favor.

The Gotchas (AKA The Stuff That Catches People Off Guard)

Home Insurance: You Need It Before You Close

Unlike other adjustments, you can't just 'take over' the seller's home insurance in Alberta. You need your own policy starting on closing day.

And here's the thing: your real estate lawyer won't let you close without proof of insurance. So don't wait until the last minute. Get quotes, compare coverage, and lock in a policy at least a week before closing.

At Hello Mortgage, we remind our clients about this early in the process, it's part of our 14 milestone updates designed to keep you on track and stress-free.

Special Assessments (The Big One for Condo Buyers)

This is where things can get expensive. If the condo board has approved a special assessment for roof repairs, parkade resurfacing, or elevator upgrades, you might be on the hook for the seller's portion.

Edmonton Cautionary Tale: David thought he was getting a steal on a condo near Whyte Ave. But on closing day, he discovered a $9,500 special assessment for window replacements that hadn't been properly disclosed during negotiations.

The lesson? Always ask your realtor and lawyer about pending or recently approved special assessments during your offer process. In Alberta's aging condo stock (especially in Calgary and Edmonton's older buildings), this is more common than you think.

The Bottom Line: Don't Panic, It's Just Math

Closing adjustments aren't fun surprises. They're fair ways to split ongoing expenses between you and the seller. The key is understanding them ahead of time so you can budget properly and avoid that deer-in-headlights feeling when you see your final closing statement.

Remember Sarah from our opening story? Once her lawyer explained that her $1,642 in adjustments was mostly prepaid property taxes and condo fees, she realized she was actually getting a pretty good deal. She was basically getting those services 'prepaid' rather than having to set up all new accounts and make deposits herself.

Pro Tip: Keep all your closing documentation! Those property tax adjustments will be useful when you file your taxes next year, and you'll want the records for your own budgeting as a new homeowner.

How Hello Mortgage Helps You Stay Ahead

At Hello Mortgage, we don't just get you approved and disappear. We walk you through every stage of your home purchase: from pre-approval to closing day: with our 14 milestone updates. That means no surprises, no confusion, and no panicking when you see your Statement of Adjustments.

We work with first-time home buyers, move-up buyers, and investors across Calgary, Edmonton, Red Deer, and all of Alberta. And we make sure you understand every line item, every adjustment, and every cost before you sign on the dotted line.

Still confused about your closing statement? That's what we're here for. Buying a home is probably the biggest financial transaction of your life, and you deserve to understand every detail.

Ready to start your home buying journey in Alberta? Let's talk. We'll make sure your closing day is as smooth (and surprise-free) as possible.

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