Ontario Mortgage Payment Calculator 2025

WOWA Simply Know Your Options

Inputs

Mortgage Type

PurchaseRenewal / Refinance

Payment Frequency

MonthlyBi-Weekly

Home Price

Down Payment

%

=

Interest Rate

%

Amortization

Years

Results

Your Monthly Payment

$2,8732.87k

CMHC Mortgage Insurance is Included

Lifetime Mortgage Costs Over 25 Years

Total Cost:	$842,939
Principal	$475,000
Interest	$367,939

Land Transfer Taxes and Other Costs

Property Location:

TorontoOutside of Toronto

CMHC Mortgage Insurance	$19,000	CMHC is mandatory for you
CMHC is mandatory for you
Land Transfer Tax	$12,950

Show Amortization Schedule

Download asCSVExcel

Located in central Canada, Ontario is the second largest province by area in Canada, covering 1,076,395 square kilometers in area (source: Statistics Canada). Ontario is Canada’s most populous province with an estimated population of over 14.8M in July 2021, out of which, over 7.1M reside in the Greater Toronto Area (source: Ontario Fact Sheet of 2021). Ontario accounted for 38.9% of Canada’s GDP in 2021, with a GDP of over $970k million.

The housing market in Ontario saw a bull run during the pandemic that lasted up till March 2022, with house prices peaking in most major cities in February or March 2022. However, the prices fell significantly since then because of continuous Bank of Canada rate hikes and increasing mortgage rates. As of October 2022, the average home price in Ontario was $835,090, representing an annual decrease of 9%. The home prices are down 23% compared to the peak of $1,086,493 in February 2022. The following graph shows the variation of average home prices in Ontario from October 2021 to October 2022.

Ontario House Prices

In Ontario, the most expensive market in October 2022 was the Toronto market with an average sold price of $1,093,097, followed by Brampton with an average sold price of $1,003,263. The average sold price of houses in Mississauga was $987,356 and $790,130 in Hamilton. The house prices in Ottawa and London were $624,003 and $640,570 respectively. The homes having prices of over $1,000,000 do not qualify for a CMHC mortgage insurance and require a minimum downpayment of 20%.

Following were the average sold prices for different home types in the major cities of Ontario in October 2022.

Toronto

Ottawa

Hamilton

Mississauga

Brampton

London

Generally, budgeting 3%-4% is a good estimate for your home closing cost, with the land transfer tax forming the major component of the cost. However, depending on if you qualify for a land transfer tax rebate for Ontario and in Toronto, this estimate may be higher than your total closing cost. Other common fees you can expect to pay on closing include the following.

The above estimates are based on average properties in Ontario. A lot of the above fees vary depending on your location, size of the property and type of the property. You may be able to get multiple quotes from different service providers to help gain an understanding of the fees you would be required to pay.

Ontario is also one of the four Canadian provinces that charge provincial sales tax (PST) on CMHC premiums. This means homebuyers that require mortgage insurance with less than a 20% down payment will need to pay this. Since this tax is only on the provincial portion of HST in Ontario, it is 8% of your total mortgage insurance premium. This tax is paid out at closing, unlike over the term of your mortgage with insurance premiums. This can mean up to an extra $2960 in costs for home buyers, depending on their mortgage amount and down payment.

When you purchase a home in Ontario, including the land that it's built on, you will have to pay Ontario’s land transfer tax. Land transfer taxes usually account for the largest chunk of your closing costs. This tax is paid at a marginal tax rate depending on the purchase price, with the following rates being set in 2017 for the province:

For example, if you purchase a property at $500,000, the land transfer tax would be a total of -

1. For first $55,000 - $55,000 × 0.5% = $275
2. For $55,000 up to $250,000 - $195,000 × 1% = $1,950
3. For $250,000 up to $400,000 - $150,000 × 1.5% = $2,250
4. For $400,000 up to $500,000 - $100,000 x 2% = $2,000

The total land transfer tax payable would be $6,475.

Toronto Land Transfer Tax

In addition to the provincial land transfer tax, those buying a house in Toronto need to pay a municipal land transfer tax. This tax is also paid at a marginal rate, and is taxed at the same rates as the Ontario one above. Thus, the land transfer tax for buying a house in Toronto is double that of the land transfer tax for buying a house elsewhere in Ontario. Additionally, an administration fee of $75 + HST is required to be paid when buying a house in Toronto.

Land Transfer Tax Rebates

In Ontario, qualifying first-time home buyers can get land transfer tax rebate on the provincial land transfer tax as well as on Toronto’s municipal land transfer tax. Ontario’s rebate will cover up to $4000 in land transfer taxes, with homes under $368,333 being free from provincial tax. Toronto’s maximum rebate is even larger, covering up to $4,475 of a home’s municipal land transfer tax for those eligible. First-time homebuyers buying a house worth less than $400,000 in Toronto receive a full Toronto land transfer tax rebate. Qualifying first-time home buyers in Toronto can receive a tax rebate of up to $8,475 in total.

If you are buying a house, having a real estate lawyer by your side can help protect your best interests and ensure you are getting a fair deal. In Ontario, it is a requirement to have a real estate lawyer represent you for a real estate transaction. The legal fees usually range between $1,100 and $1,800 and should be budgeted as a part of your closing costs. Many lawyers do not include title search, writ search, bank transfer, disbursement and other third-party charges in their fees; and you may have to pay separately for those. The cost will vary depending on the inclusions in fees and you must ask the lawyer about them.

As a buyer, your real estate lawyer can help you with the following:

• Reviewing the purchase agreement and other documents.
• Conducting title searches and arranging for title insurance.
• Ensuring there are no claims against the title or any other possible issues.
• Create a statement of adjustments and help you with land transfer taxes and rebates.
• Ensure there are no unpaid property taxes or bills.
• Facilitate closing and ensure all the conditions of the agreement are met.

From January 1, 2023, a temporary ban of two years will be imposed by the federal government on real estate purchases by foreign nationals and foreign corporations in Canada. Foreign nationals are defined as individuals who are neither citizens nor permanent residents of Canada. Prior to the ban, buyers who were neither Canadian citizens nor permanent residents were subjected to a Non-Resident Speculation Tax (NRST) in Ontario, in addition to the land transfer tax. The latest revision to the NRST was made on October 24, 2022, when the Ontario government had announced that from October 25, 2022, the NRST rate would be increased to 25% from the previous rate of 20%. Before March 30, 2022, the NRST was applicable only in the Greater Golden Horseshoe region of Ontario at a rate of 15%.

With some of the highest real estate prices in the country, in addition to some of the highest childcare costs in Canada, Ontario can be a very expensive place to live. The average young family of 3 in Toronto can expect to incur ~$5500 in monthly expenses, covering food, shelter, transportation and childcare. An overall high cost of living is common across all urban areas in the province, meaning having a steady and high-paying job can be crucial in covering major living expenses, especially for those looking to purchase a home.

In addition to the high cost of living, the high inflation rates have been adding to the unaffordability in Ontario since Q2 of 2022. As per the Statistics Canada’s Consumer Price Index data, the CPI rose 6.5% in Ontario in October 2022 compared to October 2021. The inflation rate for food was almost 10%, while the inflation rate for energy was approximately 15%. Leaving the food and energy out, the core inflation rate was approximately 5%. The gas prices inflated by around 13% year-over-year in October 2022.

Despite these factors, the Greater Toronto Area continues to attract young professionals and newcomers to the country, and Ontario's population projection is for the province to reach 20.4 million people by 2046. This would represent an increase of almost 5.6 million people, a 38% growth from 2021’s estimated population of 14.8 million. As the population continues to grow with supply already being scarce for home buyers, the province will need to continue to find new areas and places to build homes to meet the future population needs.

Land and property ownership is subjected to annual property taxes in Canada. The property taxes are used to pay for municipal services including police, public transit, schools and more. The property taxes in Ontario are levied on the MPAC (Municipal Property Assessment Corporation)’s assessed value of your property which is usually different from the fair market value of your property. Listed below are the estimated property taxes for different property types in some major cities of Ontario.

Toronto

Read more about Toronto property taxes.

Ottawa

Read more about Ottawa property taxes.

Hamilton

Read more about Hamilton property taxes.

Property tax rates vary across different cities of the same province. Property tax rates in Ontario include two main components –

• A city tax rate dependent on the municipality where the property is.
• An education tax rate which is the same across the province.

The property tax rates for major cities in Ontario are listed below.