Ontario Mortgage Calculator
Content last updated: March 11, 2020
Our mortgage calculator contains Ontario current mortgage rates, so you can determine your monthly payments. Our calculator also includes mortgage default insurance (CMHC insurance), land transfer tax and property taxes. Advertising Disclosure
Ontario mortgage calculator
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 which province you are buying your home in.
Regulations, taxes and fees consistent across Canada
Canada-wide mortgage regulations are set by the Ministry of Finance to help protect home buyers and lenders. These regulations include guidelines on minimum down payment, maximum amortization period, and CMHC insurance or mortgage default insurance. These are included in the Toronto mortgage calculator and their details are listed below as follows:
- The minimum down payment in Canada is 5% for homes under $1,000,000 or 20% for homes of greater value.
- The maximum amortization is 25 years for down payments under 20% and 35 years for higher down payments.
- Mortgage default insurance or CMHC insurance must be purchased for down payments between 5% and less than 20%. Visit Ratehub.ca’s CMHC insurance page for more details.
Regulations, taxes and fees specific to Ontario
Most taxes and fees are set at the provincial or even the municipal level. In Ontario, purchasers are responsible for obtaining Ontario mortgage rates, paying the PST on CMHC insurance, and covering Ontario land transfer taxes. For those purchasing in Toronto, additional municipal land transfer taxes will apply.
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 , which can also be searched using the Ontario payment calculator above.
PST on mortgage default insurance or CMHC insurance applicable in Ontario
While CMHC insurance is added to your mortgage balance and paid off over the amortization of your mortgage, PST on CMHC insurance must be paid out in cash at the time your purchase closes. Ratehub.ca’s Toronto mortgage calculator automatically calculates this provincial tax and displays it in the drop down menu “Cash needed: How much extra cash will I need when my house closes”.
Land transfer tax (LTT) in Ontario
Ontario’s land transfer tax 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 per cent of a home’s value depending on its purchase price. For detailed information on rates and calculations see Ratehub.ca’s Ontario land transfer tax page .
Land transfer tax rebate in Ontario
The Ontario government gives a maximum $2,000 rebate to first-time house buyers to offset the unwelcome cost of the LTT. Based on Ontario land transfer tax rates, this rebate refunds the full value of Ontario’s land transfer tax for homes up to $227,500 in value.
Visit our Ontario land transfer tax rebate page for more information on conditions and home buyer eligibility.
Ontario home inspectors
Home inspection fees are another Ontario closing cost to consider when purchasing a home. It’s wise to use an Ontario home inspector before purchasing a home so that you can make sure that the home you are about to buy is in good condition.
Ontario real estate lawyers
First-time home buyers in Ontario may be eligible for a tax rebate up to $2,000, which will cover the full LTT for homes $227,500 or less in value.
There are many legal aspects to consider when purchasing a home. With that in mind, it’s important to hire an experienced Ontario real estate lawyer to review all of your paperwork and help you finalize your transaction.