Ontario Mortgage Payment Calculator
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Ontario mortgage guide
Jamie David, Sr. Director of Marketing and Mortgages
Ontario mortgage calculator
When it comes to getting a mortgage in Ontario, having a reliable mortgage calculator gives you some certainty ahead of time. Using the calculator on this page, you can work out your monthly payments and total interest fees, as well as the impact of taking out a different size mortgage.
When calculating your mortgage amount and monthly payments, you need to take into account various regulations, taxes and fees. Some of these variables are the same across Canada, while others can vary depending on which province you are buying your home in.
Ontario, as Canada’s most populous province, tends to be more regulated than other provinces, so you need to be extra diligent. Read on to learn what you need to know about getting a mortgage in Ontario.
Canadian mortgage regulations, taxes and fees
Canada-wide mortgage regulations are set by the Ministry of Finance and the Superintendent of Financial Institutions (OSFI) to help protect homebuyers and lenders alike. These regulations include guidelines on minimum down payments, maximum amortization periods, debt servicing ratios, as well as mortgage default (CMHC) insurance.
Here are the key regulations you need to be aware of (all included in the Ontario mortgage calculator above):
- The minimum down payment in Canada is 5% of the home's value up to $500,000, then 10% of the portion of the price between $500,000 and $1,000,000. For homes valued at over $1,000,000, the minimum down payment is 20% of the total purchase price.
- The maximum amortization is 25 years for down payments under 20%, and 35 years for down payments higher than 20%.
- Mortgage default insurance - often called CMHC insurance - must be purchased for down payments between 5% and 20%. Visit our CMHC insurance page to learn more.
Ontario mortgage regulations, taxes and fees
Most taxes and fees are set at the provincial or even municipal level. In Ontario, purchasers are responsible for obtaining Ontario mortgage rates, paying the provincial sales tax (PST) for mortgage default insurance and covering Ontario land transfer taxes.
For those purchasing in Toronto, a second set of municipal land transfer taxes apply in addition to the provincial tax, as well as an overseas speculation levy for properties in the Greater Golden Horseshoe region (the densely populated urban region centred around the City of Toronto on the western side of Lake Ontario).
Mortgage rates in Ontario
Mortgage brokers and certain lenders can charge different mortgage interest rates depending on the province. Ratehub.ca has a comprehensive page of the best mortgage rates in Ontario. The most current Ontario mortgage rates are already included in the calculator above, so you can trust that the numbers it provides will be accurate.
Ontario sales tax on mortgage default insurance
When applicable, the cost of mortgage default insurance, often called CMHC insurance, is added to your mortgage balance and paid off over the amortization of your mortgage. However, Ontario provincial sales tax (PST) on mortgage default insurance must be paid out in cash at the time your purchase closes.
Our tools automatically calculate these taxes - you'll see them under the "Cash Needed" drop-down menu.
Land transfer tax (LTT) in Ontario
Ontario’s land transfer tax (LTT) is calculated as a percentage of the property’s value, using the purchase price as an estimate. The LTT is a marginal tax with rates varying from 0.5% to 2.0% of a home’s value, depending on its purchase price. For detailed information on rates and calculations, see our Ontario land transfer tax page.
Land transfer tax rebate in Ontario
The Ontario government gives a maximum $4,000 rebate to first-time homebuyers to offset the cost of the land transfer tax. Based on Ontario land transfer tax rates, this rebate refunds the full value of Ontario’s land transfer tax for homes up to $368,000 in value.
Visit our Ontario land transfer tax rebate page for more information on conditions and homebuyer eligibility.
Other Ontario closing costs
There are a number of other Ontario closing costs to consider when purchasing a home.
Legal fees: There are many legal aspects to consider when purchasing a home. With that in mind, it’s important to hire an experienced real estate lawyer to review all of your paperwork and help you finalize your transaction.
Home inspections: It’s wise to use a home inspector before purchasing a home to make sure the home you’re about to buy is in good condition.
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