Ontario Mortgage Calculator
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
Content last updated: April 28, 2020
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, total interest paid, 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 which province you are buying your home in.
Ontario, as Canada’s largest province, tends to be more regulated than other provinces, so you need to be extra diligent. Here’s everything 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 to help protect home buyers and lenders alike. These regulations include guidelines on minimum down payments, maximum amortization periods, as well as mortgage default (CMHC) insurance.
Here are the key regulations you need to be aware of, and that are included in the Ontario mortgage calculator above:
- The minimum down payment in Canada is between 5% and 10%, depending on the purchase price of the home.
- The maximum amortization is 25 years for down payments under 20% and 35 years for higher down payments.
- Mortgage default insurance - also 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 CMHC 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 state tax, as well as an overseas speculation levy for properties in the Golden Horseshoe.
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 the numbers we provide to be accurate.
Ontario sales tax on CMHC insurance
When applicable, the cost of CMHC insurance is added to your mortgage balance and paid off over the amortization of your mortgage. However, Ontario provincial sales tax (PST) on CMHC 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 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 house buyers 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 home buyer 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 an home inspector before purchasing a home, to make sure the home you’re about to buy is in good condition.