Home Financing Calculator
Estimate your mortgage payment and the total upfront cost (down payment, Land Transfer Tax, legal fees) of buying a home in Canada, in Canadian dollars.
Purchase Details
Varies significantly by province and city (Toronto adds a municipal tax on top of Ontario's) — confirm the exact rate for your location before budgeting.
Approximate — get a fixed quote from a real estate lawyer before closing.
Mortgage Payment
Total Upfront Cost
Educational estimate. Land Transfer Tax varies by province and city — verify exact amounts before budgeting your purchase. Does not include mortgage default insurance, home inspection, or title insurance.
How Mortgage Payments Work in Canada
👋 Simple Explanation
Canadian mortgages typically use a fixed payment amount for each renewal term, calculated so that the loan is fully paid off by the end of the amortization period. Early payments are mostly interest; later payments are mostly principal — but the payment itself stays level throughout the term.
Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]
Costs of Buying a Home in Canada
Beyond the down payment, buying a home in Canada involves additional costs: Land Transfer Tax (a provincial, and sometimes municipal, tax on the property transfer, varying significantly by location, with first-time buyer rebates in some provinces), legal fees, a home inspection, title insurance, and — if your down payment is under 20% — mortgage default insurance premiums. Add all of these up before deciding how much you need to save for closing — it's not just the down payment.
Frequently Asked Questions
- What is Land Transfer Tax in Canada?
- Land Transfer Tax is a provincial (and sometimes municipal) tax paid when property changes ownership, typically calculated as a percentage of the purchase price on a tiered scale — the more expensive the home, the higher the marginal rate on the portion above each threshold. Rates and rules vary significantly by province (and Toronto charges an additional municipal Land Transfer Tax on top of Ontario's provincial one). First-time buyers often qualify for a rebate — confirm the exact rate and any rebate for your province and city with a real estate lawyer before budgeting your purchase.
- Do I need mortgage default insurance in Canada?
- If your down payment is less than 20% of the purchase price, federally regulated lenders require mortgage default insurance (through CMHC or a private insurer), which adds a premium — usually rolled into your mortgage — on top of your loan amount. A down payment of 20% or more avoids this requirement.
- What other costs should I consider besides Land Transfer Tax when buying a home?
- Besides Land Transfer Tax, you'll typically pay legal fees, a home inspection, title insurance, and possibly mortgage default insurance premiums if your down payment is under 20%. These costs vary by province, lender, and property — get a detailed quote before closing your purchase.