Purchase Calculator

Understanding Your Home Purchase Costs

Buying a home involves more than just the purchase price. Your monthly mortgage payment, closing costs, and the total cash you need on closing day all factor into whether a home fits your budget. This calculator gives you the full picture so there are no surprises.

Your Monthly Payment

Your monthly mortgage payment is determined by three things: the amount you borrow (including CMHC insurance if applicable), your interest rate, and your amortization period. A longer amortization means lower payments but more interest paid over the life of the mortgage. The term you choose (1 to 5 years) sets how long your rate is locked in before renewal.

Closing Costs in Ontario

Closing costs typically range from 1.5% to 4% of the purchase price and must be paid in cash on closing day. The major components include:

• Land transfer tax: Ontario charges a provincial LTT on a marginal bracket system, and Toronto adds a municipal tax on top. This is usually the largest closing cost.
• CMHC insurance: Required if your down payment is less than 20%. The premium (2.8%–4% of the mortgage) is added to your mortgage, but the 8% PST on the premium must be paid in cash at closing.
• Legal fees: A real estate lawyer handles the title search, document review, mortgage registration, and fund transfers. Budget $1,500–$2,000 plus HST.
• Title insurance: Protects against title defects, fraud, and survey issues. A one-time cost of approximately $300.
• Home inspection: Not mandatory but strongly recommended. Typically $400–$600 depending on the property size.

First-Time Home Buyer Savings

First-time buyers in Ontario can save significantly on closing costs through land transfer tax rebates:

• Provincial rebate: Up to $4,000, covering the full LTT on homes up to $368,000.
• Toronto rebate: Up to $4,475, covering the full municipal LTT on homes up to $400,000.
• Combined savings: A first-time buyer in Toronto could save up to $8,475 in land transfer tax.