Buyer Resources
Ontario Down Payment & Closing Cost Calculator
See your minimum down payment, land transfer tax, Toronto MLTT, first-time buyer rebates and total cash needed on closing. Instant, no sign-up.
Minimum Down Payment
$55,000
6.88% of price
Estimated Closing Costs
$12,859
Taxes, legal, PST
Total Cash Required on Closing
$67,859
Down payment + closing
First-time buyer strategy
Combining your FHSA (up to $40,000) with the RRSP Home Buyers' Plan (up to $60,000) can stretch your down payment with tax-advantaged dollars. Timing contributions well matters.
Book a 15-Minute First-Time Buyer Strategy CallWith under 20% down, your mortgage is insured and you must qualify at the stress test rate (the greater of 5.25% or your contract rate plus 2%). Connect with trusted mortgage partners for pre-approval.
Jhonavel Matias
Sales Representative · CENTURY 21 Millennium Inc., Brokerage
Estimates only. Confirm figures with your lawyer and mortgage professional.
Ontario Down Payment Rules: What You Need to Know
The 5%, 10% and 20% tiers
Canada sets minimum down payments federally. On an owner-occupied home you need 5% of the first $500,000 and 10% of any portion between $500,000 and $1,500,000. On an $800,000 home that works out to $25,000 plus $30,000, or $55,000.
Owner-occupied vs investment properties
Homes you or a family member will live in qualify for insured mortgages, which is why they can be bought with 5% to 10% down. Pure investment or rental properties generally cannot be insured, so lenders require at least 20% down.
The $1.5 million threshold
Insured mortgages are capped below $1,500,000. At $1.5M and above, every buyer needs at least 20% down, whether first-time or repeat.
First-Time Buyers vs. Repeat Buyers: The True Cost Difference
Same down payment rules
Down payment percentages are identical for everyone. Where first-time buyers save is on taxes and financing options.
Land transfer tax rebates
Eligible first-time buyers receive up to $4,000 back on Ontario's land transfer tax, which fully covers the tax on homes up to $368,000. In Toronto, the municipal rebate is up to $4,475. Generally you, and your spouse, must never have owned a home anywhere in the world, and you must move in within nine months.
FHSA, RRSP Home Buyers' Plan and 30-year amortization
The First Home Savings Account lets you save up to $40,000 tax-free. The RRSP Home Buyers' Plan lets each buyer withdraw up to $60,000. First-time buyers can also access 30-year amortization on insured mortgages, lowering monthly payments.
Understanding Closing Costs in Ontario
Provincial land transfer tax
Every Ontario purchase pays a tiered tax: 0.5% up to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2,000,000, and 2.5% above that.
Toronto's double land transfer tax
Inside the City of Toronto you pay a second, municipal tax using the same brackets, roughly doubling the bill. This is a major reason many buyers look at Brampton, Mississauga and Vaughan.
Other expenses to budget for
Plan for legal fees and disbursements (often $1,500 to $2,500), title insurance, a home inspection, and the 8% Ontario PST on any mortgage default insurance premium. The premium itself is added to your mortgage, but the PST must be paid in cash at closing.
Frequently Asked Questions
What is the minimum down payment required to buy a house in Ontario?
For owner-occupied homes, the minimum is 5% of the first $500,000 and 10% of the portion between $500,000 and $1,500,000. Homes priced at $1,500,000 or more require 20% down. Investment or rental properties typically require 20% down.
Do repeat buyers need a larger down payment than first-time buyers?
No. Federal minimum down payment rules are the same for every buyer. First-time buyers differ through land transfer tax rebates, FHSA and RRSP Home Buyers' Plan access, and eligibility for 30-year insured amortization.
How does the Toronto Municipal Land Transfer Tax work?
Homes inside the City of Toronto pay a municipal land transfer tax on top of Ontario's provincial tax, using the same brackets. Eligible first-time buyers can receive a rebate of up to $4,475. Homes in Brampton, Mississauga and the rest of the GTA do not pay it.