Know your
numbers.

The minimum depends on the purchase price. Homes under $500K require 5% down. For homes between $500K and $999K, it's 5% on the first $500K and 10% on the remainder. Homes priced at $1M or more require a minimum of 20% down and are not eligible for CMHC insurance.

CMHC (Canada Mortgage and Housing Corporation) mortgage default insurance is required when your down payment is less than 20%. The premium ranges from 2.8% to 4% of the mortgage amount and is added to your loan balance — you do not pay it upfront. It protects the lender, not you, but it allows you to purchase a home with less than 20% down.

The stress test requires you to qualify at the higher of your contract interest rate plus 2%, or 5.25%. This means even if your actual rate is lower, the bank will test whether you could afford payments at the higher rate. It's designed to ensure you can handle potential rate increases.

Ontario charges a provincial land transfer tax (LTT) on every property purchase. The rate is tiered: 0.5% on the first $55K, 1% up to $250K, 1.5% up to $400K, and 2% above that. First-time buyers may qualify for a rebate of up to $4,000. Toronto also charges a municipal LTT on top of the provincial one.

A fixed rate stays the same for the term of your mortgage, giving you predictable payments. A variable rate moves with the Bank of Canada's overnight rate — it can go down, but it can also rise. Fixed rates offer peace of mind; variable rates have historically been lower over time but carry more risk. The right choice depends on your financial situation and risk tolerance.

Expect to budget 1.5–4% of the purchase price for closing costs. This includes land transfer tax, legal fees ($1,500–$2,500), title insurance (~$300), home inspection ($400–$600), and any adjustments. These are due on closing day and are in addition to your down payment.