Kitchener Mortgage Rates

Consistent with all other municipalities across Ontario, Kitchener home transactions have a provincial land transfer tax attached to them. Depending on the home purchase price, marginal tax rates range from 0.5% on the first $55,000, all the way up to 2.5% on amounts over $2,000,000. This means that the higher your expected price range is, the more transfer tax that you will have to consider when getting your mortgage.

If you are a first time home buyer, the amount of transfer tax you will need to pay at close will likely be lower. The government of Ontario offers a rebate for up to $4000, meaning that only for homes purchased at more than $368,333 will you need to pay any land transfer tax. If your purchased home price is above this, then you will pay the full amount minus the $4000 rebate.

The Kitchener-Waterloo average sale price for a home in the region was $757,906. This average includes the following prices:

With the Kitchener-Waterloo-Cambridge population at over 590,000 people, and with Kitchener itself having over 233,000 people, the region is one of the biggest in Ontario. The population in the region is expected to continue to grow at a fast pace, to over 950,000 people by 2051. This continued population growth will only mean more people will be living in the region, continuing to add new demand to an already red hot market.

Kitchener's property tax rate in 2020 is 1.0995% of the assessed home value, which you will pay to the city of Kitchener by paying it to your lender. This rate is similar to other cities in the province, and is shown below compared to Hamilton, London, and Ottawa:

By being aware of property tax amounts in your monthly housing budget, you can make a more informed decision on how much of a mortgage you can afford.