How much house can I afford in Ontario?
In Ontario the lender maximum follows the national 39% GDS and 44% TDS limits at the stress-test rate. What is distinctive is the cash to close: land transfer tax of 0.5% to 2.5%, less a first-time refund of up to $4,000, and 8% sales tax on any CMHC premium. On a $600,000 purchase the tax is $8,475, or $4,475 for a first-time buyer.
Worked examples use 4.12%, the Bank of Canada's average effective rate on new insured 5-year-plus fixed mortgages (2026-08), and are recalculated whenever our rules or rates are updated.
What's different about buying in Ontario
The lending rules in Ontario are the national ones: housing costs up to 39% of gross income (GDS), all debts up to 44% (TDS), both tested at the stress-test rate. What Ontario changes is the cash you need on closing day. Two provincial charges do most of the work:
- Land transfer tax. A marginal tax from 0.5% to 2.5% of the price, with a first-time homebuyer refund of up to $4,000.
- 8% retail sales tax on the CMHC premium. If you put less than 20% down, the insurance premium is added to your mortgage, but the tax on it is not. You pay it in cash.
Buying in Toronto adds a second, municipal land transfer tax. Ottawa and the rest of the province pay the provincial tax only.
Ontario land transfer tax brackets
Ontario's rates for a home with one or two single-family residences have been unchanged since January 1, 2017. Each rate applies only to the slice of the price inside its band:
| Portion of the price | Rate |
|---|---|
| $0 to $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Above $2,000,000 | 2.5% |
Here is what that works out to on a few example prices, for a repeat buyer and for a buyer who qualifies for the full first-time refund:
| Example price | Land transfer tax | First-time refund | First-time buyer pays |
|---|---|---|---|
| $350,000 | $3,725 | $3,725 | $0 |
| $500,000 | $6,475 | $4,000 | $2,475 |
| $700,000 | $10,475 | $4,000 | $6,475 |
| $900,000 | $14,475 | $4,000 | $10,475 |
| $1,200,000 | $20,475 | $4,000 | $16,475 |
Because the refund is a fixed $4,000, it wipes out the tax only up to about $368,333. Above that, a first-time buyer pays the same tax as everyone else, less $4,000. On a $600,000 purchase that is $8,475 for a repeat buyer and $4,475 for a first-time buyer.
Who gets the first-time refund
Ontario's refund has three conditions. You must be a Canadian citizen or permanent resident, you must never have owned a home anywhere, and you must move in within nine months of the purchase. The refund is capped by amount ($4,000), not by price, so on a $1,200,000 home it still comes off, just from a larger bill.
If you or a co-buyer has owned before, check the eligibility rules on the Ontario government page before you count on the refund. Federal help sits on top of this: see first-time home buyer programs for the FHSA, the RRSP Home Buyers' Plan and the new-home GST rebate.
8% sales tax on the CMHC premium
CMHC states that premiums in Ontario, Quebec and Saskatchewan are subject to provincial sales tax, and that the tax cannot be added to the loan. Ontario's retail sales tax on taxable insurance premiums is 8%. With the minimum down payment, the bill looks like this:
| Example price | Minimum down | Premium (added to loan) | 8% tax (paid in cash) |
|---|---|---|---|
| $450,000 | $22,500 | $17,100 | $1,368 |
| $650,000 | $40,000 | $24,400 | $1,952 |
| $850,000 | $60,000 | $31,600 | $2,528 |
Put 20% or more down and there is no premium, so no tax. Check your own premium with the CMHC insurance calculator.
Toronto, Ottawa and the rest of Ontario
Toronto is the one Ontario city that charges its own municipal land transfer tax, at rates that match the provincial ones up to $3,000,000 and rise in steps above that. A first-time buyer in Toronto can claim both the provincial refund and a separate city rebate of up to $4,475.
Ottawa buyers pay the provincial tax only, so the tables above apply as they are. Property tax is the other big local difference: it is set by each municipality and changes your GDS ratio every month.
An Ontario affordability example
Take a first-time buyer household earning $110,000 with a $55,000 down payment (closing costs come on top), $350 a month of other debts and an example five-year rate of 4.12% over 25 years. We use an example property-tax rate of 0.75% of the price and $100 a month for heat; your municipality's rate will differ.
The lender maximum is about $526,600, limited by GDS. At that price the cash needed includes $3,007 of land transfer tax after the refund and $1,170 of sales tax on the premium. A repeat buyer with the same numbers could borrow the same amount but would pay $7,007 of land transfer tax.
| Household income | Down payment | Maximum price | LTT after refund | Tax on premium | Cash to close | Limit |
|---|---|---|---|---|---|---|
| $80,000 | $35,000 | $369,700 | $21 | $1,071 | $38,792 | TDS |
| $110,000 | $55,000 | $526,600 | $3,007 | $1,170 | $61,877 | GDS |
| $140,000 | $80,000 | $683,100 | $6,137 | $1,496 | $90,333 | GDS |
| $180,000 | $120,000 | $897,900 | $10,433 | $1,929 | $135,062 | GDS |
Cash to close is the down payment plus land transfer tax, the premium tax and our estimates of $1,800 for legal fees, $350 for title insurance and $550 for an inspection and appraisal. Quotes vary, so treat those three as placeholders.
Next steps
- Run your numbers in the affordability calculator with Ontario selected and your municipality's tax rate.
- Check the full closing bill in the closing costs calculator.
- If you're buying in Toronto, read the Toronto guide: the second tax can double the bill.
Run the numbers for Ontario (other)
This calculator starts with Ontario (other)'s transfer tax and first-time relief. Open your full affordability plan set to Ontario (other).
Closing costs and land transfer tax calculator
Cash you need on closing day on top of your down payment.
| Ontario land transfer tax | $9,475 |
|---|---|
| Ontario first-time homebuyer refund | −$4,000 |
| Sales tax on the CMHC premium | $1,451 |
| Legal / notary | $1,800 |
| Title insurance | $350 |
| Inspection / appraisal | $550 |
| Total | $9,626 |
Estimate, not advice. Your lawyer or notary prepares the final statement of adjustments, including property-tax and utility adjustments not shown here.
Closing costs $9,626, of which land transfer tax or fees $5,475.
Assumptions & sources
Assumptions
- Transfer tax is calculated on the purchase price (NB, PE and NS use the greater of price or assessed value).
- First-time buyer rebates assume you meet every condition (residency, occupancy, never owned).
- Legal, title insurance and inspection figures are our planning estimates; get quotes.
Frequently asked questions
How much is land transfer tax in Ontario on a $600,000 home?
$8,475 for a repeat buyer. A first-time buyer who qualifies for the full $4,000 refund pays $4,475. Toronto buyers also pay the municipal land transfer tax.
Do first-time buyers pay land transfer tax in Ontario?
Only on homes above about $368,333. The refund is up to $4,000, which covers the whole tax below that price. You must be a citizen or permanent resident, never have owned a home anywhere, and move in within nine months.
Can the tax on my CMHC premium be added to the mortgage?
No. The premium itself is added to the mortgage, but CMHC says the provincial sales tax cannot be. In Ontario it is 8% of the premium, paid in cash at closing.
How much house can I afford in Ontario on $110,000?
About $526,600 with $55,000 down, $350 a month of other debts, an example 4.12% rate over 25 years and an example 0.75% property tax. Your municipality's tax rate and your debts will move the number.
Primary sources
- Government of Ontario — Calculating land transfer tax. Checked .
- Government of Ontario — Land transfer tax refunds for first-time homebuyers. Checked .
- Government of Ontario — Retail sales tax on insurance premiums. Checked .
- CMHC — Calculating GDS / TDS. Checked .
- OSFI — Minimum qualifying rate for uninsured mortgages (Guideline B-20). Checked .
- CMHC — Homeowner mortgage loan insurance: Purchase (eligibility). Checked .
- City of Toronto — Municipal land transfer tax rates and fees (effective April 1, 2026). Checked .