The True Cost of Buying in Ontario

Down payment requirements, mortgage default insurance, land transfer tax and closing costs: see the full cash you need to buy.

Total cash needed to close —

Upfront (cash)

Down payment
Land transfer tax
PST on CMHC premium (8%)
Legal, title, inspection & appraisal
Adjustments & moving

Your mortgage

Base mortgage
CMHC premium (added to mortgage)
Total mortgage
Monthly payment ()

For illustration only. Results are estimates based on the information entered and current Canadian lending rules, and are not a mortgage approval or commitment. Speak with us for advice specific to you.

Down payment requirements

How much do you need to put down?

In Canada, the minimum down payment depends on the purchase price. If you put down less than 20%, your mortgage must be insured against default (through CMHC, Sagen or Canada Guaranty).

Purchase price	Minimum down payment
$500,000 or less	5% of the purchase price
$500,000 to $1,499,999	5% of the first $500,000 + 10% of the portion above $500,000
$1,500,000 or more	20% of the purchase price

Example: on an $800,000 home, the minimum is $25,000 (5% of $500K) + $30,000 (10% of $300K) = $55,000, or 6.9%.

Mortgage default insurance

CMHC insurance premiums

The premium is a percentage of your mortgage, added to the loan. In Ontario, 8% PST on the premium must be paid in cash at closing.

Down payment	Premium
5% – 9.99%	4.00%
10% – 14.99%	3.10%
15% – 19.99%	2.80%
20% or more	Not required

Add 0.20% for 30-year amortizations (first-time buyers and new builds).

Closing costs

Costs buyers often forget

Plan for 1.5%–4% of the purchase price on top of your down payment. Lenders require proof you can cover closing costs.

Land transfer tax

Ontario charges 0.5%–2.5% on a sliding scale. Toronto buyers pay a second, municipal land transfer tax. First-time buyers get rebates.

Calculate LTT →

Legal fees

$1,500–$2,500 including disbursements for the title search, registration and trust handling.

Title insurance

$250–$500 one-time premium protecting against title fraud and survey issues.

Home inspection & appraisal

$400–$700 for an inspection. Appraisals ($300–$500) are often covered by the lender.

Adjustments

Reimbursing the seller for prepaid property taxes, utilities or condo fees.

New build extras

HST (with possible rebates), Tarion enrolment, utility hook-ups and development charge caps.