Run the numbers.
Calculator results are estimates. Actual mortgage terms depend on your lender's qualifying criteria, current rates, your credit profile, and the specific property. Speak with your mortgage broker for a binding quote.
Understand the real cost.
Closing costs, land transfer tax, legal fees, inspections - we walk you through every line item before you commit.
Down Payment
Minimum 5% on the first $500K; 10% on the portion $500K-$1M; 20% above $1M.
Land Transfer Tax
Toronto buyers pay both provincial and municipal LTT - together up to ~4% of price.
Closing Costs
Legal, title insurance, adjustments - typically 1.5-4% of the purchase price.
CMHC Insurance
Required for down payments under 20%. Premium ranges 2.8%-4.0% of the loan.
What a Mortgage Calculator Leaves Out in Canada
A mortgage calculator Canada buyers find online answers one narrow question, what the regular payment looks like at a chosen price, rate and amortization. That number is useful for setting a search range, and it is where most people start. It is not the cost of buying a home. The larger figures sit on the closing statement, and in the Greater Toronto Area they are worth understanding before you write an offer.
Ontario land transfer tax is the first of them. Every buyer registering a transfer in this province pays it on closing, calculated in marginal brackets against the purchase price, and it is due in cash rather than rolled into the mortgage. If the property sits inside the City of Toronto, a separate municipal land transfer tax applies on top of the provincial one, a second bill of similar size at most price points. That is why the same budget behaves differently in Thornhill, Vaughan, Markham or Richmond Hill than it does a few kilometres south, something worth weighing as you compare homes for sale across municipalities.
Eligible first-time buyers can claim a rebate against both taxes. Ontario refunds up to $4,000 of the provincial tax, and the City of Toronto refunds up to $4,475 of the municipal tax on qualifying purchases inside city limits. Your lawyer normally claims it at registration, so the conditions, including never having owned a home anywhere and occupying the property as your principal residence, are worth confirming early.
CMHC insurance, more accurately called mortgage default insurance, applies whenever the down payment is less than 20 percent of the purchase price. It protects the lender rather than the buyer, and the premium is usually added to the mortgage balance. The Ontario sales tax charged on that premium cannot be financed and is collected at closing. Minimum down payment rules are tiered, 5 percent on the first $500,000 of price and 10 percent on the portion above that, and insured financing stops above a set purchase price ceiling. Ask your mortgage professional to confirm the current thresholds before you fix a target price.
Budget separately for the rest of the closing file, which typically includes:
- Legal fees, disbursements and title insurance
- Status certificate review on a condominium purchase
- Home inspection, plus an appraisal where the lender requires one
- Adjustments reimbursing the seller for prepaid property taxes and utilities
- Sales tax on mortgage default insurance, moving costs and utility hookups
A mortgage broker confirms what you qualify for and a real estate lawyer confirms what you owe on closing. Our part is lining those numbers up against real listings and real neighbourhoods so the plan holds together. Fardad Farhanian, Broker with RE/MAX Realtron Realty Inc., Brokerage, works with buyers and sellers across Toronto and York Region. Learn more about how we work, or contact us to walk through your numbers in English or Farsi.
Mortgage and closing cost questions
What is the minimum down payment for a home in Ontario?
The minimum down payment in Canada is tiered by purchase price: 5 percent on the first $500,000, 10 percent on the portion between $500,000 and $1.5 million, and 20 percent on any portion above $1.5 million. A down payment under 20 percent requires mortgage default insurance, commonly called CMHC insurance.
What is the Land Transfer Tax in Toronto?
A buyer inside the City of Toronto pays two land transfer taxes: the Ontario provincial tax and the Toronto municipal tax. Both are calculated in marginal brackets against the purchase price and both are due in cash on closing. A property in Thornhill, Vaughan, Markham or Richmond Hill pays only the provincial tax, which is why the same budget goes further north of Steeles Avenue.
What are typical closing costs in Ontario?
Closing costs in Ontario generally run about 1.5 to 4 percent of the purchase price. They include legal fees and disbursements, title insurance, land transfer tax, property tax and utility adjustments owed to the seller, a home inspection, a lender appraisal where required, and the provincial sales tax on mortgage default insurance.
When is CMHC mortgage insurance required?
Mortgage default insurance is required whenever the down payment is less than 20 percent of the purchase price. It protects the lender, not the buyer. The premium is normally added to the mortgage balance, but the Ontario sales tax charged on that premium cannot be financed and is collected at closing.
Figures reflect federal and Ontario rules and can change. Confirm current thresholds with your mortgage professional and real estate lawyer before you fix a target price. Talk through your numbers in English or Farsi.