Mortgage Costs in Ontario
Ontario has the highest average home prices in Canada, with Toronto and surrounding areas consistently ranking among the most expensive markets in the country. The average home price in the Greater Toronto Area regularly exceeds $1 million, making mortgage planning especially important for Ontario buyers.
For Ontario buyers putting less than 20% down, CMHC mortgage default insurance is required — adding 2.8–4.0% of the mortgage amount to your loan balance. For most Ontario buyers with larger loan amounts, this represents a significant added cost.
On a $900,000 Ontario home with 10% down ($90,000), the insured mortgage of $810,000 carries a CMHC premium of approximately $28,350, bringing your starting balance to $838,350.
Ontario Mortgage: Sample Numbers
| Home Price | Down Payment (20%) | Mortgage Amount | Monthly Payment (6.25%, 25yr) |
|---|---|---|---|
| $700,000 | $140,000 | $560,000 | $3,739 |
| $900,000 | $180,000 | $720,000 | $4,807 |
| $1,200,000 | $240,000 | $960,000 | $6,409 |
| $1,500,000 | $300,000 | $1,200,000 | $8,011 |
Ontario Land Transfer Tax
Ontario charges a provincial land transfer tax on all home purchases. Toronto buyers pay an additional municipal land transfer tax on top of the provincial amount. These are one-time costs due at closing and don't affect your mortgage payment — but they significantly add to your upfront costs.
- Provincial LTT: Ranges from 0.5% to 2.5% of the purchase price, with higher rates on amounts above $2 million
- Toronto Municipal LTT: An equivalent additional tax for Toronto properties
- First-time buyer rebate: Ontario and Toronto both offer rebates for first-time buyers (up to $4,000 provincial, up to $4,475 Toronto)
Extra Payments Matter More on Larger Ontario Mortgages
Because Ontario mortgage balances tend to be large, the impact of extra payments is amplified. An extra $500/month on a $900,000 mortgage at 6.25% saves approximately $195,000 in interest over the life of the loan and shortens the amortization by over 7 years.
Use our Extra Payment Calculator to model your specific Ontario mortgage and see exactly how much you can save.
Should Ontario Homeowners Refinance?
With larger loan balances, Ontario homeowners benefit more from even small rate reductions. A 0.5% rate drop on a $800,000 mortgage saves about $4,000/year — making the break-even on typical $8,000–$12,000 closing costs just 2–3 years.
Use our Refinance Break-Even Calculator to run the numbers before speaking with a lender.