Free calculator for Canadian homebuyers

See what your home
really costs in Canada

Mortgage calculators lie by omission. We show the full picture — property taxes, CMHC insurance, land transfer tax, maintenance, and every hidden cost that surprises Canadian homebuyers.

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Your home details

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Property

$50,000$2,000,000
$
yrs

Financing

($50,000)
5%50%
Below 20% requires CMHC mortgage insurance
2%12%

Compare

$
$

True Monthly Cost

$3,807

vs $2,832 mortgage only

+34% hidden costs

Cash at Closing

$72,750

down payment + closing + repairs

Breakeven Point

10.3 yrs

buying vs. renting breakeven

Mortgage (P&I)
74%$2,832
Property Tax
12%$458
Insurance
3%$100
Maintenance
11%$417
Total Monthly$3,807

$975/mo in hidden costs

That's 34% more than a mortgage-only estimate of $2,832. This is what most calculators don't show you.

Payment Distribution

Where your money goes each month

10-Year Projection

Monthly cost by year (PMI drops at 20% equity)

Affordability Check

Risky
0%28% guideline50%

Your housing costs are 42% of income. This significantly exceeds the recommended 28% guideline.

Based on the 28/36 rule: housing costs under 28% of gross income.

Assumptions & methodology
  • •Property tax rates are province-level averages. Your actual rate may vary by municipality.
  • •Home insurance uses provincial averages. Get quotes for accurate pricing.
  • •CMHC mortgage insurance premium is a one-time charge added to your mortgage balance when your down payment is under 20%.
  • •Canadian mortgages typically renew every 1-5 years, at which point your rate may change. This calculator assumes a fixed rate for the full amortization period.
  • •Maintenance: 1%/yr (new), 1.5% (10-20 yr), 2% (20+ yr). Condos at half, townhouses at 75%.
  • •Rent vs. buy assumes 3% appreciation, 3% rent/insurance/HOA increases, 7% investment returns.
  • •For educational purposes only. Consult a financial advisor before purchasing.

The True Cost of Buying a Home in Canada: What Most Calculators Miss

Most online mortgage calculators show you one number: your monthly principal and interest payment. But that number can be 30-50% lower than what you'll actually pay each month. The true cost of homeownership in Canada includes property taxes, homeowner's insurance, CMHC mortgage insurance, land transfer tax, and ongoing maintenance — costs that add hundreds or even thousands to your monthly budget.

TheHomeCost calculator was built to give Canadian homebuyers the full picture. We use real property tax rates and insurance averages for all 13 provinces and territories, CMHC mortgage insurance premiums, province-specific land transfer taxes, and age-adjusted maintenance estimates so you can see exactly what your true monthly payment will be.

CMHC Mortgage Insurance: How It Works in Canada

In Canada, if your down payment is less than 20%, you're required to get mortgage default insurance from CMHC, Sagen, or Canada Guaranty. Unlike PMI in the United States (which is a monthly payment that drops off at 80% LTV), CMHC insurance is a one-time premium added to your mortgage balance. This means your monthly payments are higher for the life of the loan, but you don't have a separate insurance line item. Premium rates range from 2.80% to 4.00% of the loan amount depending on your down payment percentage.

Land Transfer Tax by Province

Land transfer tax is one of the largest closing costs for Canadian homebuyers. Ontario and British Columbia use progressive rate structures that increase with home price. Quebec charges a “welcome tax” (droits de mutation) on a sliding scale. Manitoba and New Brunswick also charge transfer taxes. However, Alberta, Saskatchewan, and the territories do not have land transfer tax, making them more affordable at closing.

Minimum Down Payment Rules in Canada

Canada has a tiered minimum down payment structure: 5% on the first $500,000 of the home's purchase price, 10% on any portion between $500,000 and $1,500,000, and 20% for homes priced over $1,500,000. This means for a $700,000 home, you need at least $45,000 down (5% of $500K + 10% of $200K). The insured mortgage cap was raised from $1M to $1.5M in December 2024, allowing more buyers to qualify with less than 20% down.

Rent vs. Buy: When Does Buying Make Sense in Canada?

Our rent vs. buy comparison factors in home appreciation (3% annually), rent increases (3% annually), equity buildup, and the opportunity cost of investing your down payment. In expensive markets like Toronto and Vancouver, the breakeven point may be longer than in more affordable markets like the Prairies or Atlantic Canada.

Frequently Asked Questions

What is the true cost of buying a home in Canada?

The true cost goes beyond the mortgage payment. It includes property taxes, homeowner's insurance, CMHC mortgage insurance (if your down payment is under 20%), land transfer tax (varies by province), maintenance (1-2% of home value annually), and closing costs. For a $500,000 home, hidden costs typically add $500-$1,500+ per month beyond the mortgage.

What is CMHC mortgage insurance and how much does it cost?

CMHC mortgage insurance is required when your down payment is less than 20%. Unlike US PMI (a monthly payment), CMHC insurance is a one-time premium added to your mortgage balance. Rates are: 4.00% of the loan for 5-9.99% down, 3.10% for 10-14.99% down, and 2.80% for 15-19.99% down. For a $500,000 home with 5% down, the premium is about $19,000.

What is the minimum down payment in Canada?

Canada uses a tiered structure: 5% on the first $500,000 of the home price, 10% on the portion between $500,000 and $1,500,000, and 20% for homes over $1.5M. A $700,000 home requires at least $45,000 down. The insured mortgage cap was raised from $1M to $1.5M in December 2024.

How much is land transfer tax?

It varies by province. Ontario and BC have progressive rates — for a $500,000 home, Ontario charges about $6,475 and BC about $8,000. Quebec has a similar 'welcome tax.' Manitoba and New Brunswick charge 1-2%. Alberta, Saskatchewan, and the territories have no land transfer tax.

Is it cheaper to rent or buy in Canada?

It depends on location, how long you'll stay, and interest rates. In Toronto and Vancouver, breakeven can take longer due to high prices. In more affordable markets, buying may break even in 4-7 years. Our calculator accounts for equity, appreciation, rent increases, and investment opportunity cost.

What are typical closing costs in Canada?

Closing costs typically range from 1.5% to 4% of the purchase price. They include land transfer tax (biggest cost in most provinces), legal fees ($1,000-$2,000), title insurance, appraisal, home inspection, and prepaid property taxes and insurance. Budget $10,000-$25,000 for a $500,000 home depending on your province.

How does credit score affect home buying in Canada?

In Canada, a credit score of 680+ is generally needed to qualify for the best mortgage rates. While CMHC insurance rates don't vary by credit score (unlike US PMI), your interest rate will — and even a 0.25% difference in rate can mean thousands over the life of your mortgage.

What's the difference between 25-year and 30-year mortgages in Canada?

As of December 2024, 30-year amortizations are available to all first-time homebuyers and to anyone purchasing a new-build home, regardless of down payment size. For other buyers with less than 20% down, the maximum amortization remains 25 years. CMHC-insured 30-year mortgages have a 0.20% premium surcharge. A 25-year term means higher monthly payments but less total interest.