Manitoba Mortgage Calculator 2021
Mortgage Costs Over 5-Year Term
Your land transfer tax could be lower if you are a first-time home buyer
Manitoba’s Land Transfer Tax
When purchasing a home in Manitoba, a land transfer tax based on the home value will be due upon closing of the sale. As well, a flat $70 registration fee is also included in land transfer taxes. Land transfer taxes are based on a marginal system, where the higher the home price, the higher the marginal tax rate is. For the first $30,000 of a purchase price, there will be no transfer tax incurred. The rest of the transfer tax rates are as follows:
|Purchase Price||Marginal Tax Rate|
|$30,000 to $90,000||0.5%|
|$90,000 to $150,000||1%|
|$150,000 to $200,000||1.5%|
The land transfer tax amount on the average home price in Winnipeg at $356,024 would be $4840. This is an expense that buyers need to be aware of and ready to pay, in addition to other closing costs.
Manitoba’s First Time Home Buyer Incentives
The two major programs for first time buyers in Manitoba are:
- For Metis citizens, the Louis Riel Capital Corporation provides a 5% down payment for up to $15,000. As well, another 1.5% of the purchase price up to $2500 is given.
- The Manitoba Rural Homeownership Program, where based on eligibility, you may qualify for transfer tax rebates, down payment assistance, and grants.
For those who are getting CMHC mortgage insurance, which is required for down payments below 20%, Manitoba charges provincial tax on the insurance premium. This tax is called Manitoba's Retail Sales Tax (RST), and is 7% of your CMHC insurance premium.
For example, for a house being purchased in Manitoba for $400,000, with a 5% down payment of $20,000, CMHC insurance would cost $15,200, or 4% of the mortgage amount. The tax on this amount would then be an extra $1064 due at closing.
Aside from the tax on mortgage insurance in Manitoba, other closing costs may include:
- A property survey,
- Lawyer & legal fees,
- Title insurance,
- Property appraisal fees, and
- Home inspection fees
Cost Of Living in Manitoba
Aside from both low rental rates and home prices compared to the rest of Canada, Manitoba has some of the lowest power rates, at 9.9 cents per Kilowatt Hour (KWH). Power costs are second to only Quebec at 7.3 cents per KWH. As well, food spending and childcare costs are also some of the lowest in Canada, with $332 being the average cost of food per person, and $451 being the cost of preschool in Winnipeg. This makes Manitoba a very attractive place to live on an affordability basis.
The population of Manitoba grew slower than the national average during 2020, going from 1,377,004 people in the first quarter of 2020, to 1,380,935 people by the 1st quarter of 2021. This represented a 0.29% increase, versus an increase across Canada of 0.39%.
Manitoba Home Prices
At $335,812, the average home price in the province as of April 2021, Manitoba is one of the most affordable places to purchase a house in. Prices are only up 13.6% year over year, trailing gains across the country, from $295,518 a year earlier.