Written by a RECO-licensed Toronto agent, for people who want the real numbers before the sales pitch. Use these planning steps for Toronto and the GTA, and verify current costs for your transaction.
Most first-time buyers start by browsing listings and work backwards toward a budget. That is how people fall for homes they cannot close on. The sequence that works is the reverse:
Canada's minimum down payment is tiered: five percent on the first $500,000, ten percent on the portion between $500,000 and $1.5 million, and twenty percent of the entire price at $1.5 million and above. On an $800,000 home the true minimum is $55,000, not $40,000.
Below twenty percent down, mortgage insurance applies, 4.00% of the loan at 5–9.99% down, 3.10% at 10–14.99%, and 2.80% at 15–19.99%. These are standard premiums for amortizations of 25 years or less with traditional down payments; eligible 30-year insured loans use 4.20%, 3.30% and 3.00% respectively. The premium can be added to your mortgage, but Ontario's eight percent PST on it is payable in cash at closing.
Full breakdown of down payment requirements →
The number that matters is not the rate you are quoted. Lenders qualify you at the greater of your contract rate plus two percent, or 5.25%. For example, a hypothetical 4% contract rate produces a 6% qualifying rate. This is not a current lender quote.
A basic payment calculator uses your actual rate. A lender uses the stress-test rate. The stress-test payment, other debts and lender requirements can reduce the amount you qualify to borrow.
Enter your price, down payment and rate. You'll get monthly cost, total cash-to-close, and an illustrative household-income screen, subject to lender assessment.
First-time buyer status in Ontario is worth real money, and you only get to use it once:
| Program | Worth |
|---|---|
| Ontario land transfer tax rebate | Up to $4,000 |
| Toronto municipal land transfer tax rebate | Up to $4,475 |
| FHSA | Tax-deductible in, tax-free out |
| Home Buyers' Plan (RRSP) | Up to $60,000 tax-free ($120,000 per couple) |
| 30-year amortization on insured mortgages | Lower monthly payment |
| GST/HST rebate on eligible new builds | Up to $50,000 |
Every program explained in detail →
Buy inside the City of Toronto and you pay land transfer tax twice, provincially and municipally, at nearly identical rates. On a $750,000 purchase that is roughly $11,475 each, before your rebates come off.
Budget 1.5% to 4% of the purchase price for closing costs beyond your down payment. Inside Toronto with less than twenty percent down, plan toward the top of that range.
Compare homes you can afford using current listings and recent comparable sales, then check monthly fees, property condition, commute and total cash required. A city-wide average does not establish the value of a particular home.
Your budget goes furthest in Liberty Village and the west end, midtown around Yonge-Eglinton and Davisville, and the east end near Leslieville and the Danforth. Crossing outside the city boundary avoids the municipal land transfer tax entirely.
Neighbourhood-by-neighbourhood guide →
Sometimes the answer is no, and I would rather say so. Renting another year and buying well beats stretching now and regretting it. The honest comparison, including the cases where renting clearly wins, is laid out here with real numbers.
On a purchase, the seller's side typically covers the co-operating brokerage commission, so buyer representation is generally at no direct cost to you. Compensation is disclosed in writing before you sign anything. If anyone is vague about how they are paid, ask directly and get it on paper.
I am a Sales Representative with Keller Williams Referred Urban Realty, Brokerage, registered with RECO under licence 6004758. My background is in retail commercial real estate management, which is where I learned to read leases, vet applications, and tell people what a deal actually looks like rather than what they want to hear.
Most of my clients started as renters. The ones who bought well were not the ones who timed the market. They were the ones who knew their number cold before they started looking. That is the whole point of the tools on this site.
On a $750,000 condo with 10% down, a first-time buyer needs roughly $94,165 in total cash: $75,000 down payment, both land transfer taxes less up to $8,475 in rebates, about $1,674 PST on the CMHC premium, and roughly $2,900 in legal, title and inspection costs.
Credit is one part of the assessment, along with income, debt, down payment and the property. Lenders and insurers set their own criteria; ask a mortgage professional to assess your circumstances.
From pre-approval to closing, commonly two to four months: about a week or two for pre-approval, several weeks of searching, and typically 30 to 90 days between a firm offer and closing depending on what you negotiate.
Yes, but with rebates. First-time buyers can claim up to $4,000 back on the Ontario land transfer tax and up to $4,475 on the Toronto municipal tax, $8,475 combined. Your lawyer normally claims it at registration so it reduces what you owe at closing.
On most purchases the seller's side covers the co-operating brokerage's commission, so buyer representation generally comes at no direct cost to the buyer. All compensation arrangements are disclosed in writing before you sign a representation agreement.
Lenders must qualify you at the greater of your contract rate plus two percentage points, or 5.25%. For example, a hypothetical 4% contract rate produces a 6% qualifying rate. This is not a current lender quote.
This page is general information for Ontario buyers, not legal, tax, mortgage, or financial advice, and it is not a guarantee of approval, pricing, or availability. Illustrative figures are not current market statistics or lender quotes. Confirm your own numbers with a licensed mortgage professional and a real estate lawyer before making an offer. Brendan Stewart is a Sales Representative registered with RECO (Lic. 6004758) with Keller Williams Referred Urban Realty, Brokerage.
Take the six-question readiness check and I'll tell you honestly what your numbers support today, what's holding you back if anything is, and what to fix first. No credit check, no obligation.