Tools
Mortgage & land transfer tax calculators
Rough numbers in seconds: your mortgage payment with CMHC insurance, and Ontario land transfer tax with the first-time buyer refund.
How Ontario land transfer tax works
| Portion of the price | Rate |
|---|---|
| Up to $55,000 | 0.5% |
| $55,000.01 to $250,000 | 1.0% |
| $250,000.01 to $400,000 | 1.5% |
| Over $400,000 | 2.0% |
| Over $2,000,000 (one or two single-family residences) | 2.5% |
Example from the Province: a $400,000 home pays $4,475 in land transfer tax.
First-time buyer refund
Eligible first-time buyers can get a refund of up to $4,000, which means no land transfer tax on the first $368,000 of the price. In short, you must:
- be at least 18 and a Canadian citizen or permanent resident;
- never have owned a home (or an interest in one) anywhere in the world;
- have a spouse who hasn't owned a home while being your spouse;
- move in within 9 months of buying, and apply within 18 months.
If a co-buyer doesn't qualify, the refund is reduced in proportion to the share owned by the eligible buyer. Your lawyer usually claims it at closing.
Minimum down payment & CMHC insurance
Under $1.5 million, the minimum down payment is 5% of the first $500,000 and 10% of the rest. At $1.5 million or more you need 20% down, and mortgage default insurance isn't available. With less than 20% down, insurance is required and the premium is added to your mortgage:
| Loan-to-value | Premium |
|---|---|
| Up to 65% | 0.60% |
| 65.01% to 75% | 1.70% |
| 75.01% to 80% | 2.40% |
| 80.01% to 85% | 2.80% |
| 85.01% to 90% | 3.10% |
| 90.01% to 95% | 4.00% |
A 30-year amortization on an insured mortgage is available to first-time buyers and for new builds and adds 0.20% to the premium. In Ontario, provincial sales tax applies to the premium; it must be paid in cash at closing and can't be added to the mortgage.
Other closing costs to plan for
- Legal fees and disbursements, plus title insurance
- Home inspection (and a status certificate review for condos)
- Property tax and utility adjustments
- PST on any CMHC premium
- Moving, and any work you want done before you move in
Sources
- Ontario: Calculating land transfer tax
- Ontario: Land transfer tax refunds for first-time homebuyers
- CMHC: Mortgage loan insurance premiums
- CMHC: General requirements for mortgage loan insurance
These calculators are for general information only and aren't financial, legal or tax advice. Rules and rates change; confirm with your lender, lawyer or the Province before you rely on a number.
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