In 2026, a $700,000 home in Toronto carries $20,950 in land transfer tax before rebates: $10,475 to Ontario and $10,475 to the City of Toronto. An eligible first-time buyer can receive up to $4,000 toward the provincial tax and up to $4,475 toward Toronto’s municipal tax, reducing the total to $12,475. Outside the City of Toronto, the same buyer pays only Ontario’s $10,475 provincial land transfer tax, or $6,475 after the provincial first-time buyer refund.

Toronto’s municipal land transfer tax applies only within the city’s boundaries, not throughout the Greater Toronto Area, so your costs depend on where the property is located. The eight steps below take you from checking your readiness to closing with a lawyer, including land transfer tax rules, down payment requirements and buyer programs that apply across the province.

To buy a house in Ontario, confirm your budget and land transfer tax, set aside funds for the down payment and closing costs, get mortgage pre-approval, find a home, make a written conditional offer and close with a lawyer who registers the transfer and mortgage. In the City of Toronto, buyers also pay the municipal land transfer tax; elsewhere in Ontario, only the provincial tax applies.

Location	Ontario LTT on $700,000	Toronto MLTT	Total before rebates
City of Toronto	$10,475	$10,475	$20,950
Elsewhere in Ontario	$10,475	$0	$10,475

Toronto’s municipal land transfer tax applies only within the City of Toronto. Toronto’s higher municipal land transfer tax rates apply to transfers closing on or after April 1, 2026.

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Key Takeaways

• Ontario charges a graduated provincial land transfer tax, from 0.5% to 2.5% for most residential purchases, and the City of Toronto adds a separate municipal land transfer tax.
• A $700,000 home costs $10,475 in Ontario land transfer tax anywhere in the province, plus another $10,475 in Toronto MLTT if it is in the City of Toronto.
• Eligible first-time buyers can receive up to $4,000 toward Ontario’s tax and up to $4,475 toward Toronto’s municipal tax.

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How Do You Buy a House in Ontario?

Buying a house in Ontario involves eight steps. Confirm you’re ready, work out what you can afford and save for the down payment and closing costs. Then choose a mortgage, get pre-approved, find a home, make an offer and close with a lawyer who registers the transfer. The steps are the same for a single-family house, a duplex, a townhouse or a condo, although 3- or 4-unit residential properties may require a larger down payment, depending on whether the buyer occupies one of the units.

Step 1: Are You Ready to Buy a House in Ontario?

You’re ready to buy when your income, debts, credit and savings meet a lender’s requirements, and you can cover the down payment and closing costs at the same time. Owning also brings costs a landlord used to carry, including repairs, property tax and home insurance, so build them into your budget first. For current listings in a specific area, check Realtor.ca.

How Do Income and Employment Affect Your Mortgage Application?

Lenders assess both the amount you earn and how consistently you earn it. Stable income is easier to confirm through your income documents and usually supports a stronger application. Salaried employees document income with pay stubs and an employment letter. Self-employed buyers use tax filings, and lenders often average 2 years of results because earnings swing more from month to month. Lenders assess commission and contract income using the same documentation standards.

What Debt Ratios Do Lenders Use?

Lenders assess affordability using two debt service ratios. Gross debt service (GDS) is the share of gross income that covers housing costs. Total debt service (TDS) adds every other debt payment to that share. For a mortgage insured by the Canada Mortgage and Housing Corporation (CMHC), the limits are 39% for GDS and 44% for TDS. CMHC-insured mortgages are assessed at the greater of your contract rate plus 2 percentage points or 5.25%. A payment that looks comfortable at today’s rate can therefore still fail the test, and individual lenders may set stricter limits. Our walkthrough of GDS and TDS calculations shows the formulas.

How Much Down Payment Do You Need in Ontario?

The minimum down payment is 5% of the first $500,000 of the price plus 10% of the portion between $500,000 and $1.5 million. On a $300,000 home, that is $15,000. On a $600,000 home, it is $35,000: $25,000 on the first $500,000 and $10,000 on the remaining $100,000. Homes priced at $1.5 million or more cannot be insured and require at least 20% down on the full amount. A 3- or 4-unit residential property requires at least 10% down when the buyer occupies one of the units. If no unit is owner-occupied, the property is generally treated as an investment property and requires at least 20% down. Those are the CMHC Purchase eligibility rules for insured mortgages. A larger down payment reduces the amount borrowed. That can lower both the mortgage default insurance premium and the total interest paid over the amortization. Use nesto’s down payment calculator to understand how much you may need to set aside for your home purchase in Ontario.

Methodology: nesto calculated the minimum down payment using CMHC’s published rule for owner-occupied homes with 1 to 4 units: 5% of the first $500,000 of the lending value and 10% of the remainder. The examples use the purchase price as the lending value. They exclude closing costs and default insurance premiums.

What Credit Score Do You Need to Buy a House?

CMHC requires a minimum credit score of 600 for at least one borrower on an insured mortgage. Each lender sets its own minimum, and a higher score generally gives you more lending options and better rates. If your score is below a lender’s cutoff, you may still qualify for a different product at a higher rate. Our explainer on mortgage credit scores explains how credit reporting agencies use your credit history to build your score.

Step 2: How Much House Can You Afford in Ontario?

Your affordable home price is the lowest of three limits. Income sets the first through the GDS and TDS ratios, savings set the second through the down payment and closing costs, and your comfort with the monthly payment sets the third. Nesto’s mortgage affordability calculator can help you estimate your purchasing power, so you don’t shop above your budget.

Step 3: What Does It Cost to Buy a House in Ontario?

Budget for the down payment, the land transfer tax and legal and other closing costs. The land transfer tax is often one of the largest closing costs, especially in the City of Toronto, and the first-time buyer refund reduces it.

How Is Ontario Land Transfer Tax Calculated?

Ontario calculates land transfer tax in bands based on the value of the consideration. For a typical resale purchase, this is generally the purchase price. It can also include liabilities assumed as part of the conveyance arrangement, benefits conferred, soft costs and the cost of upgrades in applicable transactions. A buyer’s new mortgage used to finance the purchase is not added to the consideration value. For land containing one or two single-family residences, the rates are 0.5% on the first $55,000, 1% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, 2% from $400,000 to $2 million and 2.5% above $2 million. The buyer pays the tax when the transfer is registered, and your lawyer normally calculates and remits it as part of closing, according to the Government of Ontario.

Take a $700,000 home. Each portion of the consideration is taxed at its own rate.

Portion of consideration	Amount in band	Rate	Tax
First $55,000	$55,000	0.5%	$275
$55,000 to $250,000	$195,000	1%	$1,950
$250,000 to $400,000	$150,000	1.5%	$2,250
Above $400,000	$300,000	2%	$6,000
Total			$10,475

Methodology: nesto calculated the provincial tax using Ontario’s published rates for land with one or two single-family residences, using an illustrative $700,000 value of consideration. The example assumes a typical resale purchase where the value of consideration equals the purchase price. It excludes HST, refunds, registration fees, legal fees and other closing costs.

Estimate the tax you may need to save for with nesto’s Ontario land transfer tax calculator.

How Much Is the City of Toronto’s Municipal Land Transfer Tax?

The City of Toronto charges a separate municipal land transfer tax (MLTT) on property located within the city. Like Ontario’s land transfer tax, Toronto’s MLTT is calculated on the value of the consideration. For a typical resale purchase, that is generally the purchase price, and the buyer’s new mortgage is not added. For homes with one or two single-family residences, Toronto’s rates match Ontario’s up to $3 million: 0.5% to $55,000, 1% to $250,000, 1.5% to $400,000, 2% to $2 million and 2.5% from $2 million to $3 million. For transfers closing on or after April 1, 2026, Toronto charges higher marginal rates above $3 million: 4.40% from $3 million to $4 million, 5.45% from $4 million to $5 million, 6.50% from $5 million to $10 million, 7.55% from $10 million to $20 million and 8.60% above $20 million, according to the City’s rates and fees page. Toronto also charges an MLTT administration fee of $102.56 plus HST, and a separate fee applies if you request a rebate after the conveyance has been electronically registered. Outside the City of Toronto, buyers pay Ontario’s provincial land transfer tax but not Toronto’s MLTT, so Mississauga, Brampton and other Greater Toronto Area municipalities do not charge it.

If you’re buying in the City of Toronto, nesto also has a Toronto land transfer tax calculator.

$700,000 home	In the City of Toronto	Elsewhere in Ontario
Provincial tax	$10,475	$10,475
Toronto municipal tax	$10,475	$0
Provincial first-time refund	−$4,000	−$4,000
Toronto first-time rebate	−$4,475	Not applicable
Eligible first-time buyer pays	$12,475	$6,475

Methodology: nesto calculated both taxes using the rates published by the Government of Ontario and the City of Toronto for one or two single-family residences. The first-time buyer figures apply the maximum refund of $4,000 and the maximum rebate of $4,475, assuming a buyer who meets every condition. The figures exclude registration fees, the City’s administration fee, legal fees and other closing costs.

Does Ontario’s Non-Resident Speculation Tax Apply to You?

Ontario’s Non-Resident Speculation Tax (NRST) applies to residential property located anywhere in Ontario when a buyer is a foreign national, a foreign corporation or a taxable trustee. The rate has been 25% since October 25, 2022, and it applies to the value of the consideration. If one of several buyers is a foreign entity, the tax applies to that buyer’s share. A buyer who becomes a permanent resident after closing may qualify for a rebate. Confirm whether the NRST applies to your situation on the Ministry of Finance’s NRST page or with an Ontario lawyer before you make an offer.

Who Qualifies for the Ontario First-Time Buyer Land Transfer Tax Refund?

A buyer qualifies for the first-time buyer refund of up to $4,000 by meeting every condition below:

• The buyer is 18 or older and a Canadian citizen or permanent resident.
• The buyer will occupy the home as a principal residence within 9 months of registration.
• Neither the buyer nor the buyer’s spouse has ever owned an eligible home anywhere in the world.

Eligible first-time buyers pay no provincial land transfer tax on the first $368,000 of the value of the consideration, and the refund is capped at $4,000. If only some purchasers qualify, the refund is reduced to their ownership share. You can claim it at registration through your lawyer, or apply through the Ministry of Finance within 18 months of registration. In the City of Toronto, eligible first-time buyers can also receive a municipal rebate of up to $4,475. It fully offsets Toronto’s MLTT on a purchase of up to $400,000, and on a higher-priced home it reduces the municipal tax but does not eliminate it. Confirm the current application process and deadline on the City of Toronto’s rebate page.

What Other Closing Costs Should You Expect?

Beyond the land transfer tax, budget for your lawyer’s fees, registration fees, a home inspection, property tax adjustments and home insurance. Electronic document registration costs $85 per registration, though your lawyer’s overall closing fees may include additional service charges. If your down payment is under 20%, lenders add a default insurance premium to your mortgage. Title insurance is not mandatory under Ontario law, but your lender may require it as a condition of financing. Your lawyer can explain the available coverage and arrange a policy if needed.

Step 4: How Do You Choose a Mortgage Rate Type and Term?

You’ll need to choose between a fixed rate, which stays the same for the whole term, and a variable rate, which moves with your lender’s prime rate. For reference, nesto’s 5-year fixed insured rate is currently 4.59%, and our 5-year variable insured rate is 3.41%. Rates change often, so check the live figures on our mortgage rates page and read our rate forecast for where they may be heading.

You can borrow from a lender directly or work with a mortgage professional who compares several lenders for you. Before you compare offers, settle five questions:

• How long do you want the term and amortization?
• Do you want a fixed or a variable rate?
• If you choose a variable rate, ensure you want a true variable rate vs an adjustable rate.
• Do you need an insured or an uninsured mortgage?
• How often do you want to make payments?

With a high-ratio insured mortgage, CMHC Home Start may offer a 30-year amortization if at least one borrower is a first-time homebuyer or the home is newly built and has never been occupied for residential purposes. Not every lender offers it, so confirm availability before you rely on it. A longer amortization lowers your monthly payment but increases the total interest you pay. A lawyer can review your mortgage terms for any unusual clauses before you sign.

Step 5: How Do You Get Pre-Approved for a Mortgage?

You get pre-approved by submitting required mortgage documents showing your income, debts and assets to a lender or mortgage professional, who then confirms how much you can borrow and at what rate. A pre-approval lets you bid on homes with a firm price ceiling. Expect to provide bank and investment statements, proof of income, debt details and government identification. A pre-approval tells you:

• The mortgage rate available to you
• Your maximum monthly payment
• The price range you can afford

A pre-approval isn’t final, since the lender still reviews the property before closing. Read nesto’s guide to the differences between a pre-approval and a pre-qualification to make sure you choose the right option for your needs and the housing market.

Step 6: Where Should You Look for a House in Ontario?

Start with communities that fit your pre-approval price ceiling and commute needs, then broaden your search if home prices run above budget. You can work with a real estate agent or search listings yourself. Five communities buyers often compare:

• Toronto: Ontario’s capital and largest city, where a municipal land transfer tax also applies.
• Ottawa: the national capital in eastern Ontario.
• Mississauga: a Greater Toronto Area city west of Toronto, outside Toronto’s municipal tax.
• Brampton: a Greater Toronto Area city northwest of Toronto, outside Toronto’s municipal tax.
• Hamilton: a city at the western end of Lake Ontario.

Step 7: How Do You Make an Offer on a House in Ontario?

In Ontario, you make an offer by submitting a written agreement of purchase and sale, usually conditional on financing and a satisfactory inspection. Once the seller accepts and your conditions are met, the agreement becomes binding, and your lawyer starts the title work.

Step 8: How Do You Close on a House in Ontario?

In Ontario, you close by signing the mortgage and transfer documents with a lawyer, who typically handles the title search, registration and closing adjustments. The lawyer collects the land transfer tax and registers the deed and mortgage. The lawyer also adjusts property taxes between you and the seller and applies your first-time buyer refund at registration if you claim it then.

What First-Time Home Buyer Help Is Available in Ontario?

First-time buyers in Ontario can combine provincial and municipal refunds with several federal tools. Our guide to first-time buyer incentives in Ontario covers each program in detail.

• Ontario land transfer tax refund: up to $4,000, described in Step 3.
• Toronto land transfer tax rebate: up to $4,475 for homes in the City of Toronto.
• CMHC Home Start: the 30-year amortization option described in Step 4, for eligible first-time buyers and buyers of newly built homes.
• Federal home buyers’ amount: a nonrefundable tax credit worth up to $1,400 for 2026, claimed on your federal return. It is 14% of a $10,000 claim amount.
• First Home Savings Account (FHSA): a registered account for tax-free saving toward a first home, up to $8,000 a year and $40,000 over your lifetime. Read nesto’s FHSA guide for the rules.
• Home Buyers’ Plan (HBP): lets you withdraw up to $60,000 from your registered retirement savings plans (RRSPs) and repay it over 15 years. If you make your first withdrawal in 2026, 2027 or 2028, repayment generally begins in the fifth calendar year after that first withdrawal. Nesto’s HBP explainer covers how to use it.

Frequently Asked Questions (FAQ) About Buying a House in Ontario

Final Thoughts

Buying a home in Ontario starts with knowing what taxes apply to your address. A $700,000 home costs $10,475 in provincial tax anywhere in the province and $20,950 in the City of Toronto, before first-time buyer refunds.

The calculators and examples on this page show how the pieces fit together, but they don’t replace a lender’s assessment of your file. If a purchase in Ontario is part of your homeownership plans, how you structure your down payment, term and rate type affects your cash flow and flexibility for years. Speak with nesto mortgage experts to compare options, review your homebuying strategy and find the approach that best fits your needs.

The information in our blog is for general discussion only and is not legal, tax or real estate advice. Nesto provides mortgage guidance. An Ontario lawyer can confirm how the land transfer tax, refunds and title insurance apply to your purchase, a qualified tax professional can confirm how tax credits apply to your situation, and a licensed real estate professional can advise on listings and pricing.

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Why Choose nesto

At nesto, our commission-free mortgage experts are salaried and regulated, with most licensed in multiple provinces. They are evaluated on client satisfaction and the quality of their advice, and they help you compare mortgage options and understand rates and qualification requirements. Once you’re ready to move forward, they work with you on a mortgage strategy that fits your situation.

nesto pairs expert advice with a 100% digital, transparent and seamless process, and a dedicated mortgage professional supports you throughout your purchase, renewal or refinance.

nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.

Contact our knowledgeable mortgage experts to find your best mortgage rate in Canada.

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