Buying your first home in Ontario? Take a breath — the math is simpler than it looks once someone walks you through it. This calculator estimates your monthly mortgage payment using the rules that actually apply in Ontario, including the part most online calculators miss: a special 8% provincial tax on your CMHC insurance premium that you pay in cash on closing day. Keep reading and we’ll walk through every number, from your monthly payment all the way to closing day.
Estimates only. Rates shown are examples as of June 2026. Always confirm the actual numbers with your lender or mortgage broker before you commit.
Quick facts for Ontario buyers
- Ontario charges an 8% provincial tax on your CMHC insurance premium — you pay this in cash at closing; it cannot be added to your mortgage.
- The Ontario Land Transfer Tax (LTT) applies to every purchase. First-time buyers get a refund of up to $4,000.
- City of Toronto buyers pay a second, municipal LTT — same amount, same brackets. First-time Toronto buyers get a separate rebate of up to $4,475 (provincial + Toronto refunds can combine for up to $8,475).
- Federal programs — the FHSA ($40,000 lifetime) and the RRSP Home Buyers’ Plan ($60,000 per person) — can make a real dent in your down payment.
- The former federal First-Time Home Buyer Incentive (shared-equity program) was discontinued in 2024. There is no current provincial down-payment grant in Ontario.
How CMHC insurance works in Ontario
If your down payment (the cash you put toward the home up front) is less than 20% of the price, Canadian rules require you to carry mortgage default insurance. In Ontario, this most often comes from the CMHC — the Canada Mortgage and Housing Corporation, the federal agency that backs these loans.
One thing worth being clear about right away: this insurance protects your lender, not you. If you ever stopped making payments, it pays the bank back — it does nothing to protect your own finances. You pay for it, but the bank is the one covered.
Why does it exist? Because it lets banks lend to buyers with smaller down payments. Without it, you’d need that full 20% saved up. The insurance is the trade-off that gets you into a home sooner.
The cost is called the premium, and it’s a percentage of your loan that depends on how much you put down. According to CMHC, the standard rates are:
- 5% down → premium of 4.00% of the loan
- 10% down → premium of 3.10% of the loan
- 15% down → premium of 2.80% of the loan
The more you put down, the smaller the premium. The premium itself is financed — added right onto your mortgage — so you don’t pay it in cash. You pay it off gradually as part of your monthly payments.
Minimum down payment rules in Ontario
Ontario follows the federal minimum down payment rules. How much you need depends on the price of the home:
- 5% on the first $500,000 of the price
- 10% on the portion between $500,000 and $1,500,000
- 20% if the home costs $1,500,000 or more (these can’t be insured at all)
For a home priced between $500,000 and $1.5 million, you blend the two. On a $700,000 home, for instance, that’s 5% of the first $500,000 ($25,000) plus 10% of the next $200,000 ($20,000) — a $45,000 minimum.
The maximum insured mortgage is $1.5 million, a cap that was raised from $1 million in December 2024. Above that price, insurance isn’t available, so you’ll need the full 20% down.
Ontario’s 8% tax on the CMHC premium — what you pay at closing
This is the Ontario-specific twist, and it’s the cost first-time buyers are most often surprised by.
While the CMHC premium gets rolled into your mortgage, Ontario charges an 8% tax on that premium — and this tax cannot be financed. You pay it in cash, at closing. Formally it’s the province’s retail sales tax (RST) on insurance premiums, but you can just think of it as the 8% provincial tax on your CMHC premium. It goes to the Ontario government, not to CMHC.
A quick word to clear up the most common confusion: this is not the HST. When Ontario harmonized its sales tax in 2010, this tax on insurance premiums was carved out and kept separate — so it survived the change and still applies today. It’s a distinct provincial charge, collected by Ontario’s Ministry of Finance.
The math is straightforward. Take your CMHC premium, multiply by 8%, and that’s your one-time tax. On a $13,950 premium, for example, that’s $1,116 — money you’ll want set aside in your closing budget, on top of your down payment.
There’s no upcoming rate change to worry about here: in Ontario this tax stays at 8%.
Local regulations and closing costs in Ontario
The biggest closing cost for most Ontario buyers is the Land Transfer Tax (LTT) — cash you pay at closing through your lawyer; it can’t be rolled into your mortgage.
According to the Government of Ontario, the provincial LTT on a $500,000 home is $6,475. First-time buyers get a refund of up to $4,000, which brings the net cost down to about $2,475 — the refund fully covers the LTT on homes up to $368,000. To see exactly what you’d owe at any price, use our Ontario land transfer tax calculator.
If you buy in the City of Toronto, you also pay a municipal Land Transfer Tax on top of the provincial one — the same brackets, the same $6,475 on a $500,000 home — with its own first-time rebate of up to $4,475. For a qualifying Toronto first-time buyer, both refunds together can reduce the combined $12,950 bill to roughly $4,475 out of pocket.
What does a complete closing budget look like for a Toronto first-time buyer on a $500,000 home?
- Net combined LTT after refunds: approx. $4,475
- Ontario 8% premium tax (on $13,950 premium): $1,116
- Legal fees: roughly $1,800
- Title insurance: roughly $300
- Home inspection: roughly $500
- Approximate total closing costs beyond the down payment: ~$8,191
These are approximations. Your lawyer will provide an exact closing-cost statement before you sign.
Your options as an Ontario buyer
Several programs — federal and provincial — can meaningfully reduce your upfront costs.
First Home Savings Account (FHSA) The FHSA is a registered account built specifically for first-time buyers. You can contribute up to $8,000 per year and up to $40,000 lifetime. Contributions are tax-deductible (like an RRSP), and qualifying withdrawals toward a home purchase are completely tax-free (like a TFSA). You can stack the FHSA with the Home Buyers’ Plan. According to Canada.ca, the FHSA opened for contributions in April 2023.
RRSP Home Buyers’ Plan (HBP) With the HBP, you can withdraw up to $60,000 per person from your RRSP — $120,000 for a couple — tax-free toward a down payment. You repay it back into your RRSP over 15 years. It’s an interest-free loan from yourself, which is hard to beat.
First-Time Home Buyers’ GST/HST Rebate (introduced March 2025) For agreements of purchase and sale signed on or after March 20, 2025, eligible first-time buyers of a newly built home can recover the GST (or the federal part of the HST) paid to the builder — up to $50,000. The full rebate applies to homes valued up to $1 million; a partial rebate applies from $1 million to $1.5 million. Eligibility uses a 5-year lookback rule — not a “never owned” standard. Confirm at canada.ca, as this program is recent and details may be updated.
Ontario Land Transfer Tax first-time refund — up to $4,000 This refund is for people buying their very first home anywhere. To qualify, you must be at least 18, a Canadian citizen or permanent resident, and intend to occupy the home within 9 months. You must never have owned a home anywhere in the world. Apply within 18 months of closing. The refund fully covers the LTT on homes priced up to about $368,000. According to the Government of Ontario, there is no income test.
Toronto Municipal Land Transfer Tax first-time rebate — up to $4,475 City of Toronto purchases only. The same general eligibility as the provincial refund. Stacks with the provincial refund for a combined saving of up to $8,475 for a qualifying Toronto first-time buyer.
Ontario new-build HST relief — up to $130,000 (⚠️ confirm at ontario.ca) Ontario’s 2026 Budget announced a rebate on the provincial portion of the HST for newly built homes, potentially worth up to $130,000. This applies to agreements signed April 1, 2026 through March 31, 2027, and is not limited to first-time buyers. As of June 2026, this relief is subject to final legislation — confirm the current status and your eligibility at ontario.ca before relying on it.
How to use this calculator
It takes about thirty seconds:
- Enter the home price — the purchase price you’re considering.
- Enter your down payment in dollars. The tool checks it against the Ontario minimum and warns you if it falls short.
- Enter the interest rate your lender quoted (or a rate you want to test).
- Choose your amortization — the number of years to pay the mortgage off, usually 25.
You’ll see your estimated monthly payment, your CMHC premium, the 8% provincial tax you’ll owe in cash at closing, and your total mortgage with the premium included.
One detail worth knowing: this calculator uses the correct Canadian method. Canadian fixed-rate mortgages compound semi-annually (twice a year), not monthly like in the United States. Many American-built calculators get this wrong and slightly overstate your payment. Ours follows the Canadian convention, so the estimate is realistic.
Example — a $500,000 Ontario home with 10% down
Let’s walk through a real scenario so you can see how the pieces fit together.
You’re buying a $500,000 home and putting 10% down ($50,000), with a 4.79% rate over a 25-year amortization.
The mortgage side:
- Loan before insurance: $500,000 − $50,000 = $450,000
- CMHC premium at 10% down (3.10%): $450,000 × 3.10% = $13,950 (financed into your mortgage)
- Ontario’s 8% tax on the premium: $13,950 × 8% = $1,116 — paid in cash at closing
- Total mortgage: $450,000 + $13,950 = $463,950
- Estimated monthly payment at 4.79% over 25 years: $2,643
The closing-cost side (Toronto first-time buyer):
- Net combined LTT after provincial + Toronto refunds: approx. $4,475
- Ontario 8% premium tax: $1,116
- Legal fees: roughly $1,800
- Title insurance: roughly $300
- Home inspection: roughly $500
- Approximate total closing costs beyond the $50,000 down payment: ~$8,191
If you’re buying outside Toronto, the picture improves considerably — after the provincial LTT refund, your net LTT drops to about $2,475, bringing total closing costs to closer to $5,500–$6,000.
Frequently asked questions
Does CMHC insurance protect me if I can’t pay?
No. CMHC mortgage default insurance protects your lender, not you. If you default, it reimburses the bank — it does not cover your own losses or keep your home. You pay the premium, but the bank is the one protected.
Do I pay land transfer tax twice in Toronto?
Yes. Toronto buyers pay the provincial Land Transfer Tax and the City of Toronto’s own municipal Land Transfer Tax — both calculated on the same brackets. On a $500,000 home that’s $6,475 × 2 = $12,950 before refunds. First-time buyers can claim up to $4,000 back from the province and up to $4,475 from the city, reducing the combined bill to roughly $4,475.
How big is the Ontario first-time LTT refund?
Up to $4,000. It fully covers the provincial LTT on homes priced up to about $368,000. Above that price you start paying some LTT, but the refund still helps. There’s no income test — what matters is that you’ve never owned a home anywhere.
What exactly is the 8% Ontario tax on CMHC insurance?
It’s the province’s retail sales tax on insurance premiums, charged at 8% on your CMHC premium and collected by Ontario’s Ministry of Finance. Unlike the premium, it can’t be financed — you pay it in cash at closing. It is not the HST; it was kept separate when Ontario harmonized its sales tax in 2010.
Can I use my RRSP or FHSA for a down payment?
Yes. The RRSP Home Buyers’ Plan lets you withdraw up to $60,000 tax-free (repaid over 15 years). The FHSA lets you save up to $40,000 lifetime with contributions that are tax-deductible and withdrawals that are tax-free. You can use both together.
What’s the maximum insured mortgage in Ontario?
$1.5 million. This cap was raised from $1 million in December 2024. If the home costs $1.5 million or more, mortgage insurance isn’t available and you’ll need a down payment of at least 20%.
Sources
- Canada Mortgage and Housing Corporation (CMHC) — mortgage loan insurance, premium rates, and minimum down payment rules.
- Government of Ontario — Retail Sales Tax on insurance and benefits plans — the 8% provincial tax on insurance premiums.
- Government of Ontario — Land Transfer Tax — provincial land transfer tax rates and first-time homebuyer refund.
- City of Toronto — Land Transfer Tax — municipal LTT and first-time buyer rebate.
- Ontario Budget 2026 — new-build HST relief announcement (subject to final legislation).
- Canada.ca — First Home Savings Account (FHSA) — contribution limits, tax treatment, and withdrawal rules.
- Canada.ca — Home Buyers’ Plan (HBP) — withdrawal limits, eligibility, and repayment rules.
- Canada.ca — First-Time Home Buyers’ GST/HST Rebate — eligibility criteria, home value thresholds, and how to apply.
This page is for general information, not financial advice. Figures are estimates as of June 2026 and change over time — confirm the current numbers with your lender, mortgage broker, or lawyer before you commit.