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First-Time Home Buyer Costs in Ontario
Understand the major upfront and recurring costs to include in a home budget.
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Enter your own assumptions in the related tool. This page explains what to consider before interpreting the result.
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Start with the numbers you actually know. For income questions, distinguish gross pay from net pay. For borrowing questions, consider the rate, term, fees, taxes and insurance that apply to your situation. For savings questions, treat the rate of return as an assumption rather than a guarantee.
For Canadian tax, payroll, registered-account and lending questions, rules can change and personal circumstances matter. Use official government, employer, lender or account records to confirm important figures.
Ontario land transfer tax on a $700,000 home: the full math
Ontario taxes land transfers on a marginal-rate scale. For a $700,000 purchase:
| Price bracket | Rate | Tax |
|---|---|---|
| First $55,000 | 0.5% | $275 |
| $55,001–$250,000 ($195,000) | 1% | $1,950 |
| $250,001–$400,000 ($150,000) | 1.5% | $2,250 |
| $400,001–$700,000 ($300,000) | 2% | $6,000 |
| Total | $10,475 |
Ontario’s first-time homebuyer refund returns up to $4,000 of that, bringing your net land transfer tax to $6,475. Warning for Toronto buyers: the City of Toronto charges its own municipal land transfer tax on top of the provincial one — roughly doubling this line item.
Closing-cost checklist: plan $13,000–$17,000 beyond the down payment
On a $700,000 Ontario purchase, budget for: legal fees $1,500–$2,500; home inspection $400–$600; moving $1,000–$2,000; title insurance ~$400–$600; appraisal ~$300–$500; and property-tax/utility adjustments ~$1,500–$3,000. Add the net $6,475 land transfer tax (after the $4,000 first-time rebate) and a realistic all-in closing budget lands around $13,000–$17,000 — on top of your down payment. Land transfer tax is the single biggest closing cost, which is exactly why the rebate matters.
The total cash formula: down payment + closing + emergency fund
Total cash needed = down payment + closing costs + 3–6 months of emergency reserves. Example: a $700,000 home with 20% down ($140,000), ~$15,000 in closing costs, and an emergency fund. Monthly housing cost ≈ the mortgage payment on $560,000 at 5% ($3,273.70) plus property tax and insurance (~$550) ≈ $3,824/month — six months is about $22,942. All in: roughly $140,000 + $15,000 + $22,942 ≈ $177,942 in cash. That’s the number to save toward — not just the down payment.
Frequently asked questions
How accurate is this first-time home buyer costs in ontario?
It is an educational estimate. Results depend on the assumptions you enter and may not match a payroll statement, lender decision, tax assessment or account statement.
What should I enter?
Use your own income, price, balance, rate, payment or contribution assumptions. For tax and payroll questions, verify important figures with official sources.
Can I use this for a final financial decision?
Use it as a planning tool. Confirm final amounts with the relevant employer, lender, financial institution or government source.
How much land transfer tax does a first-time buyer pay on a $700,000 Ontario home?
$10,475 before rebates. Ontario’s first-time buyer refund returns up to $4,000, so your net out-of-pocket tax is $6,475.
How much cash do I need on top of my down payment?
Plan $13,000–$17,000 for closing costs on a $700,000 purchase — legal, inspection, moving, title insurance and the net land transfer tax — plus a 3–6 month emergency fund. The down payment is only part of the cash you need.
Do first-time buyers still pay land transfer tax in Toronto?
Yes. Toronto charges its own municipal land transfer tax in addition to Ontario’s, so Toronto buyers face roughly double the tax. The $4,000 provincial first-time buyer refund still applies to the Ontario portion.