Buying a home in Canada: a checklist of every cost and the calculator for each
Most buyers budget for the down payment and the mortgage, then find out about the rest at closing. This checklist lists the costs in the order you meet them and points to the calculator for each.
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What costs do I pay when buying a home in Canada?
Beyond the purchase price: the down payment, the mortgage payment, the stress test you must pass to qualify, the land transfer tax, closing costs such as legal fees, and each year's property tax. Registered accounts such as the FHSA and the Home Buyers' Plan can help with the down payment.
1. The down payment
Find the smallest down payment allowed for your price with the minimum down payment calculator. If you are saving, the FHSA calculator and the Home Buyers' Plan calculator show what registered accounts can add, and the guide to the FHSA, RRSP and TFSA compares them.
2. The mortgage payment and the stress test
To see how much you can borrow, start with the mortgage affordability calculator. The mortgage payment calculator uses Canadian compounding. Lenders also require you to qualify at a higher rate, which the mortgage stress test calculator shows, and the guide to qualifying rules explains.
3. Land transfer tax
Most provinces tax the transfer of land. Use the Ontario land transfer tax calculator, the Quebec welcome tax calculator or the land transfer tax calculator for the other provinces. See land transfer tax by province.
4. Closing costs
In Toronto the closing cost calculator adds the City's land transfer tax, and in British Columbia the closing costs calculator covers the property transfer tax and its first-time buyer exemption.
5. Property tax after you move in
The yearly bill depends on the city: use the property tax calculator for Toronto, Mississauga, Winnipeg, Saskatoon, Regina and Victoria, or the Calgary property tax calculator. The guide to how property tax is assessed explains the differences.
6. If you are renting for now
Not sure whether to buy at all? The rent vs buy calculator compares the two paths and shows the year buying pulls ahead. Ontario tenants can check the most their rent can rise with the Ontario rent increase calculator.