Understand what you can comfortably afford
A mortgage approval is only one part of the picture. We will talk about your monthly comfort, closing costs, maintenance and the life you still want to enjoy after you move in.
Search propertiesCall or text WendyBudget beyond the down payment
Know the whole cost before you fall in love with a home.
These examples are a planning guide—not a lender, legal or contractor quote. I will help you identify the right questions so there are fewer surprises between an accepted offer and closing day.
01The deposit comes first
It is part of your down payment—not an extra charge.
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The deposit comes first
It is part of your down payment—not an extra charge.
Your offer states the deposit amount and when it must be delivered. In many Ontario resale transactions, 5% is a common example, but the amount is negotiable and can vary with the property and market. It is often due when the offer is accepted or within 24 hours, so the funds need to be accessible.
A 5% deposit would be:$30,000 on $600,000$40,000 on $800,000$50,000 on $1,000,000
On closing, the deposit is credited toward the full down payment you owe. The offer—not a general rule—controls the actual amount and deadline.
02Down payment and mortgage examples
“5% down” only applies when the purchase price is $500,000 or less.
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Down payment and mortgage examples
“5% down” only applies when the purchase price is $500,000 or less.
The familiar phrase “buy with 5% down” can be misleading. A flat 5% minimum applies only to a home priced at $500,000 or less. Above $500,000, the minimum is 5% of the first $500,000 plus 10% of every dollar above it, up to a $1.5-million purchase price.
| Purchase price | Minimum down payment | Mortgage before insurance | 20% down payment | Mortgage with 20% down |
|---|---|---|---|---|
| $600,000 | $35,000 | $565,000 | $120,000 | $480,000 |
| $800,000 | $55,000 | $745,000 | $160,000 | $640,000 |
| $1,000,000 | $75,000 | $925,000 | $200,000 | $800,000 |
Mortgage-default insurance
CMHC costs shown separately
With less than 20% down, mortgage-default insurance is normally required. The premium can usually be added to the mortgage. Ontario's 8% tax on the premium cannot be added and is paid in cash at closing.
| Purchase price | Mortgage before insurance | Loan-to-value | 25-year premium at 4% | Mortgage after premium | Ontario tax at closing | First-time buyer 30-year premium at 4.2% | 30-year mortgage after premium | Ontario tax at closing |
|---|---|---|---|---|---|---|---|---|
| $600,000 | $565,000 | 94.17% | $22,600 | $587,600 | $1,808 | $23,730 | $588,730 | $1,898.40 |
| $800,000 | $745,000 | 93.13% | $29,800 | $774,800 | $2,384 | $31,290 | $776,290 | $2,503.20 |
| $1,000,000 | $925,000 | 92.50% | $37,000 | $962,000 | $2,960 | $38,850 | $963,850 | $3,108 |
What about the 4.5% rate?
At 90.01%–95% loan-to-value, CMHC's standard 25-year premium is 4%. The 4.5% rate applies when the down payment is from a non-traditional source, such as an unsecured loan or line of credit. Under CMHC Home Start, a qualifying first-time buyer using a 30-year amortization normally pays 4.2%, or 4.7% with a non-traditional down payment.
Why this insurance feels different from ordinary insurance
Mortgage-default insurance protects the lender, but the cost is normally passed on to the buyer. The entire premium is charged when the mortgage is arranged. It is not recalculated or refunded as the mortgage balance falls and the home builds equity. If the premium is added to the mortgage, the buyer also pays mortgage interest on it until that borrowed amount is repaid.
On a $600,000 purchase with the minimum $35,000 down payment, the $22,600 premium increases the mortgage from $565,000 to $587,600. At an illustrative 4.5% interest rate with monthly payments over 25 years, the balance would be about $515,900 after five years. The buyer would have 20% equity at that point if the home were worth approximately $644,900; if its value remained $600,000, the mortgage would reach $480,000 after approximately seven years and two months.
Reaching 20% equity reduces the lender's risk, but it does not cancel the insurance or create a refund. Paying the insured mortgage off or discharging it ends that mortgage; refinancing or moving can change how the existing coverage or a premium credit applies. Ask the lender or mortgage professional to confirm the specific insurer and terms.
These examples assume a traditional down payment and that the entire insurance premium is added to the mortgage. Interest, mortgage payments, qualification and lender fees are not included. Ask your lender to confirm the insurer, premium and amortization that apply to you.
03Inspections and specialized checks
The right checks depend on the home, not only its age.
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Inspections and specialized checks
The right checks depend on the home, not only its age.
Home inspection$450–$700 + HST
Structure, roof, electrical, plumbing, heating and visible components.
Septic inspection$350–$650 + HST
Scope varies; pumping or a camera inspection may cost extra.
WETT inspection$250–$450 + HST
For a wood stove, fireplace or other solid-fuel appliance; often priced per appliance.
Well inspection$350–$800 + HST
Depending on whether flow, equipment and laboratory water testing are included.
These are rough Ontario planning ranges. Get a written quote that says exactly what is included, whether travel is extra and when results will be delivered.
04Legal fees, title insurance and adjustments
Your lawyer turns the accepted agreement into registered ownership.
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Legal fees, title insurance and adjustments
Your lawyer turns the accepted agreement into registered ownership.
Legal work and disbursements
For planning, allow roughly $1,800–$3,000 + HST for a straightforward purchase with a mortgage. Ask whether the quote includes title searches, registrations, courier or software charges and mortgage work.
Title insurance
Often roughly $250–$500 as a one-time premium. It can protect the owner and lender against certain title defects, fraud and other covered risks. Your lawyer explains the actual policy and exclusions.
Closing adjustments
These are not penalties. They reimburse one party for property expenses covering time after ownership changes—commonly property tax, condo fees or prepaid fuel.
Adjustment example
If the seller already paid $6,000 of property tax for the full year and you take ownership halfway through it, you may reimburse roughly $3,000 on closing. Your lawyer calculates the exact amount by the closing date.
05Ontario land transfer tax
The tax is calculated in layers, like income-tax brackets.
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Ontario land transfer tax
The tax is calculated in layers, like income-tax brackets.
You pay 0.5% on the first $55,000, 1% on the portion from $55,000 to $250,000, 1.5% on the portion from $250,000 to $400,000 and 2% on the portion above $400,000 for these examples. You do not pay the highest rate on the entire price. An eligible Ontario first-time buyer can receive a refund of up to $4,000, usually handled through the lawyer at closing.
| Purchase price | Ontario tax | Maximum eligible refund | Tax after maximum refund |
|---|---|---|---|
| $600,000 | $8,475 | Up to $4,000 | $4,475 |
| $800,000 | $12,475 | Up to $4,000 | $8,475 |
| $1,000,000 | $16,475 | Up to $4,000 | $12,475 |
These examples are outside Toronto. Toronto charges a separate municipal land transfer tax. Eligibility rules apply, so your lawyer must confirm the refund available to you.
06Moving in and owning month to month
Leave room in the plan for life after closing.
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Moving in and owning month to month
Leave room in the plan for life after closing.
Moving
A local professional move might be roughly $1,000–$3,000, depending on home size, distance, stairs, packing and timing. A rental truck costs less, but remember fuel, kilometre charges, supplies and help.
Immediate needs
Budget for locks, paint, window coverings, small repairs and anything identified in the inspection. A $2,000–$10,000 starting cushion is useful; an older or rural property may need more.
Maintenance reserve
A common planning rule is about 1% of the home's value per year: $500/month on $600,000, $667 on $800,000 or $833 on $1 million. You will not spend it evenly, so treat it as a reserve.
Typical monthly items to investigate
Property taxAnnual bill ÷ 12; $6,000/year is $500/monthHome insuranceOften $125–$250+HydroRoughly $100–$250+HeatingRoughly $100–$300+ averaged over a yearWater & sewerRoughly $60–$150+, or a rural-system reserveInternetRoughly $60–$120+
Mortgage payments and condo fees are not included above. Actual costs vary widely with the home, household, municipality, energy source and insurance history. Ask for recent bills and the property-tax amount before deciding.
First Home Savings Account
An FHSA can allow an eligible first-time buyer to save toward a qualifying first home with tax advantages. Eligibility and contribution rules matter, so confirm your situation with a qualified financial or tax adviser.
Home Buyers' Plan
Eligible buyers may be able to withdraw funds from an RRSP toward a qualifying home and repay the amount over time. A lender or tax adviser can help you understand the current rules.
Land transfer tax refund
Eligible first-time buyers in Ontario may receive a refund of some or all provincial land transfer tax, subject to the program's requirements.
Use official information
Programs and eligibility can change. I will flag the questions to ask, while your lender, lawyer and tax professional confirm what applies to you.
Your questions are welcome
You do not have to figure out your first move alone.
Tell me where you are in the process. We can talk through what makes sense now and what can wait.
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