Closing Costs Calculator
Estimate the one-time costs to close on your home.
Commission and penalty auto-fill from your "Your Next Move" calculator. You can override them here if needed. Your lawyer handles all disbursements on closing day.
Note: Toronto is the only city in Ontario with a Municipal Land Transfer Tax. All other Ontario cities pay only the Provincial LTT.
Ontario Land Transfer Tax brackets (provincial): 0.5% on first $55,000, 1.0% from $55,001–$250,000, 1.5% from $250,001–$400,000, 2.0% from $400,001–$2,000,000, 2.5% above $2,000,000. Ontario FTHB rebate: up to $4,000 (full rebate on purchases up to $368,333; partial rebate up to $500,000). Toronto Municipal Land Transfer Tax: mirrors provincial brackets up to $400,000, then 2.0% to $2M, 2.5% to $3M, 3.5% to $4M, 4.5% to $5M, 5.5% to $10M, 6.5% to $20M, 7.5% above $20M. Toronto FTHB rebate: up to $4,475 (full rebate on purchases up to $400,000; partial rebate up to approximately $500,000). LTT brackets and rebates are set by provincial/municipal legislation and may change — always verify current rates and eligibility requirements with your real estate lawyer before relying on these numbers for your closing budget. Legal fees, inspection costs, and appraisal fees vary by provider and property complexity.
Cash to Close: Your Closing-Day Checklist
Two weeks before closing, your lawyer will tell you exactly how much to wire. Use this to know that number now, and to walk into your appointment with nothing missed.
CMHC premium is auto-calculated from your scenario above. Ontario charges 8% PST on the CMHC premium, payable at closing (the premium itself rolls into your mortgage).
This is a planning estimate only, not a legal Statement of Adjustments. Your real estate lawyer will issue the official Statement of Adjustments approximately 1–2 weeks before your closing date with the exact wire amount. The final number often differs from estimates due to: property tax proration (exact to the day), utility prepayments or credits from the seller, condo status certificate fees ($100–$150), mortgage discharge or assignment fees on the seller's side, any holdbacks negotiated during the transaction, title registration fees, and last-minute adjustments for fuel oil, prepaid rent (if applicable), or common expense arrears. Wire instructions come directly from your lawyer's office — never wire money based on email instructions alone (wire fraud is common in real estate). Always confirm the wire amount and account details with your lawyer by phone or in person before sending funds.
Lifestyle Affordability
It's not just about whether the bank says yes, it's about whether your life still feels like yours after the mortgage. Build your real monthly picture below. Your mortgage payment auto-fills from the calculator.
Income (monthly, after tax)
Housing
Living
Debts & Savings
Lifestyle
This lifestyle budget is a personal planning tool only. Lenders do not use this calculation in their approval process — they use GDS/TDS ratios based on gross income (see the Mortgage Affordability tab). However, qualifying for a mortgage and comfortably affording one are two different things. A positive surplus here means your lifestyle can absorb the mortgage comfortably. A shortfall means you may need to adjust your spending, increase income, or consider a lower purchase price. Expenses are estimates — track your actual spending for 2–3 months before relying on these numbers. Don't forget irregular annual expenses (car maintenance, gifts, vacations, home repairs) divided by 12.
Quick Guides
Short, no-jargon explanations of the things that trip people up most.
What Is the Mortgage Stress Test?
Every federally regulated lender in Canada must qualify you at the higher of your contract rate + 2%, or 5.25% (the benchmark floor). This is called the stress test, and it exists so you can still afford your home if rates rise.
Example: If your contract rate is 3.7%, you're qualified at 5.7%. That means your GDS and TDS ratios are tested against a payment calculated at 5.7%, even though you'll actually pay 3.7%.
The stress test doesn't change your actual payment, it only limits how much you can borrow. It applies to purchases, refinances, and switches (with some exceptions for uninsured straight switches).
How CMHC Mortgage Insurance Works
If your down payment is less than 20% of the purchase price, you're required to buy mortgage default insurance (commonly called CMHC insurance, though Sagen and Canada Guaranty also offer it).
Premium rates (% of mortgage amount):
- 5% to 9.99% down: 4.00%
- 10% to 14.99% down: 3.10%
- 15% to 19.99% down: 2.80%
The premium is added to your mortgage balance (you don't pay it out of pocket), but Ontario charges 8% PST on the premium amount, payable at closing. Maximum insurable purchase price is $1.5 million.
Ontario Land Transfer Tax Explained
Ontario's LTT is a one-time tax paid on closing day, calculated on a progressive bracket system:
- 0.5% on the first $55,000
- 1.0% from $55,001 to $250,000
- 1.5% from $250,001 to $400,000
- 2.0% from $400,001 to $2,000,000
- 2.5% above $2,000,000
If you're buying in Toronto, the city adds its own Municipal LTT on top (similar brackets). First-time buyers get rebates: up to $4,000 provincial and up to $4,475 in Toronto.
What Happens on Closing Day
Closing day is when ownership legally transfers to you. Here's the typical timeline:
- 1–2 weeks before: Your lawyer sends a Statement of Adjustments showing the exact amount to wire.
- A few days before: You wire the funds to your lawyer's trust account.
- Morning of: Your lawyer registers the deed, your lender advances the mortgage funds, and the seller's lawyer receives payment.
- Afternoon: You get the keys (usually by 5–6 PM, though delays happen).
Common surprises: utility prepayments by the seller, last-minute holdbacks for repairs, or delays if the seller's discharge isn't ready. Your lawyer handles all of this.
GDS & TDS Ratios: The Bank's Affordability Rules
Lenders use two ratios to determine how much they'll lend you:
GDS (Gross Debt Service): Your housing costs (mortgage + property tax + heating + 50% of condo fees) divided by gross income. Maximum: 39%.
TDS (Total Debt Service): Housing costs PLUS all other debt payments (car loans, credit cards, student loans, lines of credit) divided by gross income. Maximum: 44%.
Both ratios are calculated using the stress-test rate, not your actual contract rate. If either ratio exceeds its limit, the lender reduces your maximum mortgage until both pass.
Breaking Your Mortgage Early: Penalties Explained
If you sell before your mortgage term ends, you'll pay a prepayment penalty. The calculation depends on your mortgage type:
Variable rate: Typically 3 months' interest.
Fixed rate: The GREATER of 3 months' interest OR the Interest Rate Differential (IRD). The IRD compensates the lender for the rate difference over your remaining term, and can be substantial — often $10,000–$30,000+ on larger mortgages.
Some lenders (especially Big 5 banks) use a posted-rate IRD that inflates the penalty. Monoline lenders typically use a fairer discounted-rate IRD. Always ask your lender for an exact penalty quote before listing.
Porting vs. Breaking: Your Options When You Move
Porting means transferring your existing mortgage (same rate, same term) to your new property. Not all lenders allow it, and you must qualify at the new property's value.
Blend-and-extend lets you keep part of your old rate and blend it with today's rate for a new term. Useful if your current rate is lower than market.
Breaking means paying the penalty and starting fresh. Sometimes this is actually cheaper than porting if rates have dropped significantly or your remaining term is short.
The Mortgage Project can run the math on all three scenarios to find your best option.
From The Mortgage Project
Honest, opinionated reads on the things homebuyers actually need to know.
Trusted Resources
Official sources, regulators, and tools from the people who set the rules.
Glossary: Mortgage Terms Decoded
Swipe through to explore common mortgage terms and what they mean.
Rebecca Blaha
You've run the numbers, now let's make it real. The next step is a proper pre-approval: it's free, takes just a few minutes, and tells you exactly what you qualify for so you can shop with confidence.
About The Mortgage Project
We were created to make home financing feel less overwhelming and more empowering, especially for homebuyers at every stage. We believe your mortgage isn't just a transaction; it's the foundation of your financial future. Our approach is built on clear education, honest numbers, and strategies that fit your life today and the life you're building for tomorrow.
Get the App on Your Phone
Scan this QR code with your phone's camera to open the app instantly. Then follow the quick prompt to add it to your home screen, it works just like a regular app, no app store needed.
iPhone: Tap the Share icon (box with arrow), then "Add to Home Screen."
Android: Tap the menu (three dots), then "Install app."
Your Current Home
Start here. How much equity have you built up?
What You'll Walk Away With
After selling costs, here is what you can expect in your pocket. Sale price auto-fills from Step 1.
Mortgage penalties depend on your lender and product type (fixed vs. variable, open vs. closed). Ask your lender for an exact payout statement before listing.
What Can You Afford Next?
Your proceeds from Step 2 flow in automatically. Add any extra savings and your income details to see your maximum purchase price.
This calculator uses the Canadian mortgage stress test (OSFI Guideline B-20): you must qualify at the greater of your contract rate + 2% or the 5.25% benchmark floor. Calculations assume semi-annual compounding (Canadian standard), property tax at 1% of home value annually, and heating costs as entered. If your down payment is 20% or more, no mortgage default insurance is required. Insurance premiums (if applicable): 5–9.99% down = 4.00%, 10–14.99% = 3.10%, 15–19.99% = 2.80% of mortgage amount. Net proceeds and equity calculations are estimates only — actual sale proceeds depend on market conditions, final negotiated price, and costs that may differ from estimates entered here. These numbers are for planning purposes only, not a guarantee of financing or property value. For a binding pre-approval, complete a full application with The Mortgage Project.
Should You Stay or Move?
Compare the cost of staying in your current home vs. moving up over your planned time horizon.
Stay
Move
This is a simplified comparison using constant appreciation and maintenance rates over your chosen time horizon. Actual results depend on market conditions, interest rate changes at renewal, neighbourhood-specific appreciation, and personal circumstances. This is not financial advice — it's a planning perspective to help frame the conversation with your mortgage broker.
