HomeLife Miracle Realty Ltd., Brokerage
HomeLife Miracle Realty Ltd., Brokerage
Compare down payments side by side, see your cash needed at closing, check how much home you can afford and weigh renting against owning. Download any result as a PDF. Free, private and nothing to sign up for.
Free Ontario Calculators
Compare down payments side by side, see your cash needed at closing, check what you can afford, and weigh renting against owning. Download any result as a PDF to keep or share.
Enter the price, then compare four down payments side by side: CMHC insurance, mortgage amount and payment. Change the down payment, rate, amortization or frequency in any scenario.
Tap a scenario to use it for the cash needed at closing and the payment schedule below.
| Year | Principal | Interest | Balance |
|---|
Most mortgages renew every 5 years (highlighted). The rest assumes the same rate.
Lenders look at your income, debts and housing costs, tested at a higher "stress test" rate. This shows the price range a lender may approve.
Paid on closing day through your lawyer. First-time buyers get up to $4,000 back from Ontario. Toronto charges its own municipal tax on top; Waterloo Region, Guelph and Woodstock don't.
| Ontario bracket | Rate | Tax |
|---|
Compares buying the home from your selected Mortgage Payment scenario with renting and investing the money you'd otherwise put into the home.
| Year | Rent paid | Owning costs | Owner wealth | Renter wealth |
|---|
I'll help you turn these estimates into a pre-approval and a strong offer, and connect you with a mortgage professional.
Estimates only, for fixed-rate mortgages compounded semi-annually. Your lender, lawyer and the CMHC confirm actual rates, premiums, taxes and costs.
How It Works
Ontario charges land transfer tax when you buy a home, and it is due on closing day, usually paid through your lawyer. It works like income tax brackets: each slice of the price is taxed at its own rate. The land transfer tax calculator above does the math for you, and here is exactly what it is doing.
Eligible first-time buyers can get back up to $4,000 of Ontario land transfer tax. That covers the full tax on homes up to about $368,000. You must be at least 18, a Canadian citizen or permanent resident, move in within nine months of closing, and never have owned a home anywhere in the world. Your spouse also cannot have owned a home while you were together. The refund is usually claimed by your lawyer on closing, or you can apply within 18 months.
Toronto adds its own municipal land transfer tax on top of Ontario’s. Homes in Cambridge, Kitchener, Waterloo, Guelph, Ayr and Woodstock only pay the provincial tax, which is what this land transfer tax calculator shows.
Foreign nationals and some foreign corporations buying residential property anywhere in Ontario pay the Non-Resident Speculation Tax (NRST) of 25% on top of the regular land transfer tax, unless an exemption applies. A federal ban on many foreign buyers also applies. Speak with a lawyer before you make an offer.
With less than 20% down, your mortgage needs default insurance from CMHC, Sagen or Canada Guaranty. The premium is usually added to your mortgage, but Ontario charges 8% provincial sales tax on that premium, and it has to be paid in cash on closing.
Plan for legal fees and title insurance, a home inspection, property tax and utility adjustments, and moving. Many lenders want to see that you have about 1.5% of the price set aside for closing costs.
Federal rules require you to qualify at the higher of your contract rate plus 2% or 5.25%. So even if your payment looks comfortable, your approval may be lower. Get pre-approved so you know your real number, and see the Ontario home buyer programs that can lower your costs.
| Part of the purchase price | Ontario rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Over $2,000,000 (homes with one or two single-family residences) | 2.5% |
| 0.5% of the first $55,000 | $275 |
| 1.0% of the next $195,000 | $1,950 |
| 1.5% of the next $150,000 | $2,250 |
| 2.0% of the last $300,000 | $6,000 |
| Ontario land transfer tax | $10,475 |
|---|---|
| Less first-time buyer refund (if eligible) | −$4,000 |
| First-time buyer pays | $6,475 |
On closing day. Your real estate lawyer collects it from you and pays it when the deed is registered.
No. Land transfer tax has to be paid in cash on closing, so it needs to be part of your savings plan.
If only one of you qualifies, the refund is reduced based on the share of the home that person owns. Your lawyer will calculate it on closing.
Yes, as an estimate. For new homes, HST is not part of the taxable value, but any HST new housing rebates you assign to the builder are added to it. Your lawyer will confirm the exact amount on closing.
Sources: Ontario: Land transfer tax · Ontario: First-time homebuyer refunds · Ontario: Non-Resident Speculation Tax · CMHC: Mortgage loan insurance
Quick Reference
If you just want a ballpark, here is the Ontario land transfer tax at price points that are common in Waterloo Region. For your exact number, use the calculator at the top of the page.
It is one of the few closing costs that must be paid in cash. Unlike mortgage insurance, land transfer tax cannot be added to your mortgage, so it has to come out of your savings along with your down payment.
The only legal way for most buyers is the first-time buyer refund. If you are buying with someone who is not a first-time buyer, the refund is reduced based on ownership shares, so plan the title carefully with your lawyer.
On a new build, land transfer tax is based on the value of the consideration, which does not include HST. If you assign your HST new housing rebates to the builder, those rebate amounts are added back to the taxable value. Your lawyer will confirm the exact figure on closing.
| Purchase price | Ontario land transfer tax | First-time buyer pays |
|---|---|---|
| $400,000 | $4,475 | $475 |
| $500,000 | $6,475 | $2,475 |
| $600,000 | $8,475 | $4,475 |
| $700,000 | $10,475 | $6,475 |
| $800,000 | $12,475 | $8,475 |
| $900,000 | $14,475 | $10,475 |
| $1,000,000 | $16,475 | $12,475 |
Applies to homes outside Toronto, such as in Cambridge, Kitchener, Waterloo, Guelph, Ayr and Woodstock. First-time buyer amount assumes the full $4,000 refund.
Yes. It applies to houses, townhouses, condos and most other property purchases in Ontario.
It depends. Transfers between spouses and some family transfers can be exempt or based on a different value. Speak with a real estate lawyer.
For your own home, no. For a rental property, it is generally added to the cost of the property rather than deducted in one year. Ask your accountant.
Jeewan Sidhu, REALTOR®Usually replies the same day
Calculators are a great starting point. I'll help you turn the numbers into a real plan, and introduce you to a mortgage professional if you need one.