The Ontario Mortgage Calculator estimates monthly mortgage payments and the total cost of homeownership in Ontario, accounting for Ontario-specific closing costs including land transfer tax (provincial and Toronto municipal), CMHC insurance premiums, and legal fees. Ontario has the highest effective land transfer tax in Canada for Toronto buyers, who pay both the Ontario provincial LTT and the Toronto Municipal Land Transfer Tax (MLTT).
Quick Answer
On a $750,000 home purchase in Toronto with 10% down ($75,000), the monthly mortgage payment at 5.0% over 25 years is approximately $3,926. Ontario LTT is $10,475 and Toronto MLTT is $10,475 — total LTT of $20,950. CMHC insurance at 3.10% adds $20,925 to the insured mortgage. Total closing costs (including LTT, CMHC, legal, and title insurance) are approximately $30,000-$35,000 before HST.
Ontario Land Transfer Tax
Ontario LTT rates for residential properties:
| Home Value |
Rate |
| First $55,000 |
0.50% |
| $55,001 to $250,000 |
1.00% |
| $250,001 to $400,000 |
1.50% |
| $400,001 to $2,000,000 |
2.00% |
| Over $2,000,000 |
2.50% |
First-time homebuyers receive a rebate of up to $4,000 on Ontario LTT (the full LTT for homes up to approximately $368,000). Toronto’s Municipal Land Transfer Tax uses the same rate structure as Ontario LTT but applies a separate calculation — also rebated up to $4,475 for first-time buyers.
CMHC Mortgage Insurance in Ontario
Purchases with less than 20% down require CMHC mortgage default insurance. The premium is added to the mortgage principal:
– 5% to 9.99% down: 4.00% premium
– 10% to 14.99% down: 3.10% premium
– 15% to 19.99% down: 2.80% premium
Maximum insured mortgage in Canada is $1,500,000 (as of December 2024). Ontario has no additional provincial premium.
Ontario-Specific Considerations
HST on new homes: New homes in Ontario are subject to HST (13%). The Ontario New Housing Rebate reduces HST for primary residences priced up to $450,000 (full rebate) with a partial rebate up to $450,000. New homes above $450,000 receive no Ontario rebate but may qualify for the federal GST/HST New Housing Rebate portion.
Title insurance: Most Ontario real estate lawyers require title insurance — typically $250-$600 per transaction for a residential purchase.
Legal fees: Ontario real estate lawyer fees for a standard purchase run $1,500-$3,500, plus disbursements.
Verified Against Source
Ontario LTT rates are set under the Land Transfer Tax Act, R.S.O. 1990, c. L.6. Toronto MLTT rates are governed by Toronto Municipal Code Chapter 760. The CMHC premium rates are published by CMHC at cmhc-schl.gc.ca. Source: ontario.ca/page/land-transfer-tax and toronto.ca/city-government/budget-finances-taxes/taxes-finance/municipal-land-transfer-tax-mltt
Frequently asked questions
- How much is land transfer tax in Ontario?
- Ontario LTT is tiered: 0.50% on the first $55,000, 1.00% on $55,001-$250,000, 1.50% on $250,001-$400,000, 2.00% on $400,001-$2,000,000, and 2.50% above $2,000,000. On a $750,000 home, Ontario LTT is $10,475. Toronto buyers also pay the Municipal Land Transfer Tax using the same rate structure — an additional $10,475 on the same $750,000 purchase.
Do first-time buyers get a land transfer tax rebate in Ontario?
Yes. First-time homebuyers in Ontario receive a rebate of up to $4,000 on the Ontario LTT (covering the full LTT for homes priced up to approximately $368,000). Toronto first-time buyers also receive a Toronto MLTT rebate of up to $4,475. Both rebates are applied at closing — you do not pay the full LTT and wait for a refund.
What is the CMHC insurance premium for a 10% down payment in Ontario?
A down payment of 10% to 14.99% triggers a CMHC premium of 3.10% of the insured mortgage amount. On a $750,000 purchase with 10% down ($75,000), the insured mortgage is $675,000. The CMHC premium = $675,000 x 3.10% = $20,925, added to the mortgage for a total insured balance of $695,925.
What is HST on a new home in Ontario?
New homes in Ontario are subject to 13% HST. The Ontario New Housing Rebate reduces this for primary residences: 75% of the provincial portion of HST (up to $24,000 maximum) for homes priced up to $400,000, with a gradual phase-out up to $450,000. Homes above $450,000 receive no Ontario rebate. The federal portion rebate (36% of federal GST, up to $6,300) applies to homes priced up to $450,000.
How much down payment is required in Ontario?
The minimum down payment depends on purchase price: 5% for homes up to $500,000; 10% on the portion between $500,000 and $999,999; 20% for homes priced $1 million or more (CMHC-insured mortgages are not available above $1.5 million as of December 2024). Ontario has no additional provincial down payment requirement beyond federal minimums.
What are the closing costs for a home in Ontario?
Closing costs for a typical Ontario purchase typically total 1.5% to 4% of the purchase price. Major components: land transfer tax (1.0-2.0% for non-Toronto purchases, double for Toronto), title insurance ($250-$600), legal fees ($1,500-$3,500), and home inspection ($500-$1,000). CMHC insurance is not a closing cost — it is added to the mortgage.
What is the mortgage stress test in Ontario?
The federal mortgage stress test applies to all Ontario purchases with federally regulated lenders (banks and most mortgage companies). Borrowers must qualify at the higher of their contract rate plus 2%, or 5.25%. The stress test is not set by Ontario — it is a federal OSFI requirement under Guideline B-20.
Can I get a 30-year mortgage in Ontario?
Insured mortgages (less than 20% down) have a maximum amortization of 25 years in Canada. Uninsured mortgages (20%+ down) can have amortizations up to 30 years at most lenders. As of August 2024, the federal government extended the 30-year amortization to insured mortgages for first-time homebuyers purchasing new construction properties.
What is the Toronto Municipal Land Transfer Tax?
The Toronto Municipal Land Transfer Tax (MLTT) is a city-level tax that applies in addition to the Ontario provincial LTT for purchases within Toronto city limits. It uses the same rate structure as Ontario LTT: 0.50% on the first $55,000, rising to 2.50% above $2 million. A $750,000 Toronto purchase triggers approximately $10,475 in provincial LTT and $10,475 in Toronto MLTT — $20,950 total.
Are mortgage payments tax-deductible in Ontario?
No. Mortgage interest on a principal residence is not tax-deductible in Canada, unlike the US mortgage interest deduction. Interest on a mortgage used to purchase a rental or investment property is deductible as a business expense on Schedule T776. Ontario has no provincial mortgage interest deduction either.
[cw_howto]
Frequently asked questions
- How much is land transfer tax in Ontario?
- Ontario LTT is tiered: 0.50% on the first $55,000, 1.00% on $55,001-$250,000, 1.50% on $250,001-$400,000, 2.00% on $400,001-$2,000,000, and 2.50% above $2,000,000. On a $750,000 home, Ontario LTT is $10,475. Toronto buyers also pay the Municipal Land Transfer Tax using the same rate structure — an additional $10,475 on the same $750,000 purchase.
- Do first-time buyers get a land transfer tax rebate in Ontario?
- Yes. First-time homebuyers in Ontario receive a rebate of up to $4,000 on the Ontario LTT (covering the full LTT for homes priced up to approximately $368,000). Toronto first-time buyers also receive a Toronto MLTT rebate of up to $4,475. Both rebates are applied at closing — you do not pay the full LTT and wait for a refund.
- What is the CMHC insurance premium for a 10% down payment in Ontario?
- A down payment of 10% to 14.99% triggers a CMHC premium of 3.10% of the insured mortgage amount. On a $750,000 purchase with 10% down ($75,000), the insured mortgage is $675,000. The CMHC premium = $675,000 x 3.10% = $20,925, added to the mortgage for a total insured balance of $695,925.
- What is HST on a new home in Ontario?
- New homes in Ontario are subject to 13% HST. The Ontario New Housing Rebate reduces this for primary residences: 75% of the provincial portion of HST (up to $24,000 maximum) for homes priced up to $400,000, with a gradual phase-out up to $450,000. Homes above $450,000 receive no Ontario rebate. The federal portion rebate (36% of federal GST, up to $6,300) applies to homes priced up to $450,000.
- How much down payment is required in Ontario?
- The minimum down payment depends on purchase price: 5% for homes up to $500,000; 10% on the portion between $500,000 and $999,999; 20% for homes priced $1 million or more (CMHC-insured mortgages are not available above $1.5 million as of December 2024). Ontario has no additional provincial down payment requirement beyond federal minimums.
- What are the closing costs for a home in Ontario?
- Closing costs for a typical Ontario purchase typically total 1.5% to 4% of the purchase price. Major components: land transfer tax (1.0-2.0% for non-Toronto purchases, double for Toronto), title insurance ($250-$600), legal fees ($1,500-$3,500), and home inspection ($500-$1,000). CMHC insurance is not a closing cost — it is added to the mortgage.
- What is the mortgage stress test in Ontario?
- The federal mortgage stress test applies to all Ontario purchases with federally regulated lenders (banks and most mortgage companies). Borrowers must qualify at the higher of their contract rate plus 2%, or 5.25%. The stress test is not set by Ontario — it is a federal OSFI requirement under Guideline B-20.
- Can I get a 30-year mortgage in Ontario?
- Insured mortgages (less than 20% down) have a maximum amortization of 25 years in Canada. Uninsured mortgages (20%+ down) can have amortizations up to 30 years at most lenders. As of August 2024, the federal government extended the 30-year amortization to insured mortgages for first-time homebuyers purchasing new construction properties.
- What is the Toronto Municipal Land Transfer Tax?
- The Toronto Municipal Land Transfer Tax (MLTT) is a city-level tax that applies in addition to the Ontario provincial LTT for purchases within Toronto city limits. It uses the same rate structure as Ontario LTT: 0.50% on the first $55,000, rising to 2.50% above $2 million. A $750,000 Toronto purchase triggers approximately $10,475 in provincial LTT and $10,475 in Toronto MLTT — $20,950 total.
- Are mortgage payments tax-deductible in Ontario?
- No. Mortgage interest on a principal residence is not tax-deductible in Canada, unlike the US mortgage interest deduction. Interest on a mortgage used to purchase a rental or investment property is deductible as a business expense on Schedule T776. Ontario has no provincial mortgage interest deduction either.