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.

Ontario Mortgage Calculator 2025 — Payment, LTT, and Closing Costs

Calculate your Ontario mortgage payment with integrated closing costs: provincial LTT, Toronto MLTT if applicable, and first-time buyer rebates.

Reviewed by Canadian Money Help Editorial Updated April 25, 2026 Source Ontario — Land Transfer Tax; CMHC; Toronto MLTT

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The Ontario mortgage calculator computes the monthly payment, total interest paid, and amortisation breakdown for a home purchase in Ontario. It applies Canadian semi-annual compounding as required by the Interest Act for fixed-rate mortgages, and includes the CMHC mortgage insurance premium for purchases with less than 20% down. Ontario-specific costs — particularly the Ontario and Toronto land transfer taxes — are not included in the payment calculation but are noted as closing costs.

What is the average mortgage payment in Ontario in 2025?

With a 20% down payment on an average Ontario home price of approximately $850,000 (Ontario Real Estate Association, Q1 2025), the mortgage is $680,000. At a five-year fixed rate of 5.00% over 25 years, the monthly payment is approximately $3,960. Buyers with 10% down on the same price incur an $827,000 mortgage plus a CMHC premium of $28,118 (3.40% of the insured mortgage), for a total mortgage of $855,118 and a monthly payment of approximately $4,980 at the same rate and amortisation. The GTA’s high home prices make mortgage payments a larger share of household income than in most other Canadian markets.

How Ontario mortgage payments are calculated

Canadian semi-annual compounding

The Interest Act (Canada) requires federally regulated lenders to express interest on fixed-rate mortgages at a rate no more frequently compounded than semi-annually. This means the nominal annual rate (e.g., 5.00%) is compounded twice per year, not monthly. The equivalent effective monthly rate must be derived from the semi-annual rate: effective monthly rate = (1 + annual nominal rate / 2)^(1/6) minus 1. For a 5.00% nominal rate: (1 + 0.025)^(1/6) minus 1 = 0.4124%. This is slightly less than 5.00/12 = 0.4167%, so Canadian mortgage payments are slightly lower than a naive monthly calculation suggests.

Stress test at the qualifying rate

Under OSFI Guideline B-20, Ontario lenders qualify borrowers at the higher of the contract rate plus 2 percentage points or 5.25%. A buyer offered a 5.00% contract rate must qualify at 7.00%. This means the lender verifies that the borrower can service the mortgage at a 7.00% rate under GDS (39%) and TDS (44%) ratios. The monthly payment at the qualifying rate is shown in the calculator’s affordability module. The actual payment is at the contract rate.

CMHC insurance premium

Purchases with less than 20% down require CMHC mortgage insurance if the property is priced below $1,500,000. Premium rates by LTV (loan-to-value) in 2025: 4.00% for LTV 90.01% to 95%; 3.10% for 85.01% to 90%; 2.80% for 80.01% to 85%. The premium is added to the mortgage principal, not paid at closing. However, Ontario levies 8% HST on the CMHC premium, which must be paid in cash at closing. For a $500,000 mortgage with a 4.00% premium, the CMHC premium is $20,000 and Ontario HST on that premium is $1,600, due at closing.

Verified against source

Semi-annual compounding requirements are set by the Interest Act, R.S.C. 1985, c. I-15, s.6. OSFI Guideline B-20 (Residential Mortgage Underwriting Practices and Procedures) governs the qualifying rate. CMHC premium rates are published at cmhc-schl.gc.ca. Ontario HST on CMHC premiums is confirmed from the Ontario Ministry of Finance. These references were verified in April 2026.

Ontario mortgage payment by price and down payment — reference table

Purchase price	Down payment	Mortgage + CMHC	Monthly payment (5%, 25yr)
$500,000	5% ($25,000)	$494,750	~$2,882
$700,000	10% ($70,000)	$654,660	~$3,813
$850,000	20% ($170,000)	$680,000	~$3,960
$1,000,000	20% ($200,000)	$800,000	~$4,659
$1,500,000	20% ($300,000)	$1,200,000	~$6,988

Monthly payments are approximate, based on 5.00% fixed rate, 25-year amortisation, Canadian semi-annual compounding. CMHC premium at 4.00% (95% LTV), 3.10% (90% LTV). Homes above $1,500,000 require 20% down and are not insurable.

Ontario-specific costs beyond the mortgage payment

Ontario buyers face several province-specific costs in addition to the mortgage payment. Land transfer tax on a $700,000 purchase is $9,475 (or $5,475 after the $4,000 first-time buyer rebate). Toronto buyers pay an additional $9,475 municipal LTT. These amounts are due at closing in cash. Ontario HST on the CMHC insurance premium is also due at closing if the down payment is below 20%. Buyers should budget for combined closing costs of 2% to 3.5% of the purchase price in Ontario, or 3.5% to 5% for Toronto purchases, in addition to the down payment.

Choosing between fixed and variable rates in Ontario

Ontario borrowers faced one of the most dramatic rate cycles in recent Canadian mortgage history. Five-year fixed rates moved from approximately 2.00% in early 2021 to 5.50% to 6.00% in 2023, while variable rates peaked above 6.00% before declining. As of early 2026, five-year fixed rates are in the 4.50% to 5.50% range depending on lender and insured vs uninsured status; variable rates track the Bank of Canada overnight rate with a prime-based spread, currently around 4.50% to 5.00%. The break-even analysis between fixed and variable depends on rate trajectory expectations, penalty tolerance, and remaining amortisation. The fixed vs variable mortgage calculator on this site models the break-even explicitly.

First-time buyer programs in Ontario

Ontario residents purchasing their first home can reduce the total cost of homeownership through several federal and provincial programs. The federal First Home Savings Account (FHSA) allows first-time buyers to contribute up to $8,000 per year (lifetime limit $40,000), deducting contributions from taxable income and withdrawing tax-free for a qualifying home purchase. The RRSP Home Buyers’ Plan allows withdrawals of up to $35,000 per person ($70,000 per couple) from an RRSP, repayable over 15 years. Ontario’s Land Transfer Tax rebate returns up to $4,000 of the provincial LTT for first-time buyers, and Toronto’s separate rebate returns up to $4,475 for qualifying purchases in the city.

The federal First Home Buyer Incentive (a shared-equity mortgage program) closed to new applicants in March 2024. However, the Canada Mortgage and Housing Corporation continues to offer information on CMHC-insured mortgage options for first-time buyers who qualify for its insured programs.

Amortisation choices in Ontario

The standard amortisation period for insured mortgages in Ontario is 25 years. As of August 2024, first-time home buyers purchasing new construction may qualify for a 30-year amortisation on an insured mortgage, reducing the monthly payment by approximately 9% to 10% compared with 25 years at the same rate. For uninsured mortgages (20% or more down), most Ontario lenders allow amortisation periods of up to 30 years, and some offer 35 years on a case-by-case basis. Longer amortisation reduces monthly payments but substantially increases total interest paid over the mortgage life.

The difference in monthly payment between a 25-year and a 30-year amortisation on a $600,000 mortgage at 5.00% is approximately $280 per month. The difference in total interest paid over the life of the mortgage is approximately $60,000 to $70,000 in favour of the shorter amortisation.

Methodology

Monthly payment uses standard amortization with semi-annual compounding (Interest Act). Ontario LTT: tiered 0.5%-2.5% on purchase price. Toronto MLTT: same schedule for Toronto addresses. CMHC: 4.00%/3.10%/2.80% premium by LTV tier. First-time buyer rebate up to $4,000 ON / $4,475 Toronto.

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.