Understand the True Cost of Your New Home
From closing fees to monthly payments, our tool helps you budget for every step of your Canadian home purchase. Get a clear, personalized estimate to plan your finances with confidence.
1. Your Purchase Plan
Upfront Costs Summary
2. Closing Cost Breakdown
Closing costs are one-time fees paid to finalize your home purchase. They typically range from 1.5% to 4% of the purchase price and must be paid out-of-pocket. This chart visualizes the estimated components of your total closing costs.
3. Mortgage & Ongoing Costs
Estimated Mortgage Payment
$2,326.14
per month
Understanding the Details
Legal Fees ($1,000 – $3,000): A lawyer or notary is required to review documents, ensure the title is clear, and transfer ownership.
Land Transfer Tax (Varies by Province): A significant tax paid to the government when a property changes hands. This is often the largest closing cost. Some provinces offer rebates for first-time buyers.
Appraisal Fee ($300 – $500): Your lender may require an appraisal to confirm the property’s market value before approving your mortgage.
Title Insurance ($150 – $5,000): A one-time premium protecting you and the lender from losses related to title fraud or errors in public records.
Mortgage Default Insurance (CMHC): Required if your down payment is less than 20%. The premium can be added to your mortgage, but the PST on the premium (in ON, QC, SK) must be paid upfront at closing.
Home Inspection ($500 – $1,500): Though optional, a professional inspection is highly recommended to identify potential issues with the property before you buy.
Semi-Annual Compounding: In Canada, most mortgage interest is compounded semi-annually by law. This means the effective annual rate is slightly higher than the quoted rate, a factor our calculator includes.
Accelerated Payments: Choosing “Accelerated” bi-weekly or weekly payments means you’ll make the equivalent of one extra monthly payment each year. This simple strategy can shave years off your amortization and save you thousands in interest.
Fixed-Rate Mortgage: Your interest rate is locked in for the entire term, providing predictable and stable payments.
Variable-Rate Mortgage: Your interest rate fluctuates with the lender’s prime rate. Your payments may stay the same, but the portion going to principal vs. interest will change.
Open vs. Closed Mortgage: Open mortgages offer the flexibility to pay off your mortgage anytime without penalty but have higher rates. Closed mortgages have lower rates but limit how much you can prepay.
Property Taxes: A recurring tax paid to your municipality, typically calculated as a percentage of your home’s assessed value. Rates vary widely by city.
Home Maintenance: A common rule of thumb is to budget 1% of your home’s value annually for repairs and upkeep. This can vary based on the home’s age, condition, and Canada’s harsh climate.
Condo/Strata Fees: If you buy a condo, you’ll pay a monthly fee for the maintenance of common areas, amenities, and contributions to the building’s reserve fund.
Home Insurance: Mandatory for mortgage holders, this protects your property and belongings from damage or theft.
Plan Your Journey to Homeownership
This tool provides a comprehensive estimate to help you budget effectively for your home purchase. The journey involves significant upfront costs and long-term financial commitments. By understanding these details—from provincial land transfer taxes to the impact of accelerated payments—you can make informed decisions and achieve sustainable homeownership.
Disclaimer: The calculations provided are for estimation purposes only and are based on the data from the source report. They are not a substitute for professional financial advice. Please consult with a mortgage professional, real estate lawyer, and financial advisor for personalized guidance.