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Can I afford to buy, and what will it really cost?
Four numbers decide it: how much a lender will give you, what the payment and carrying costs are, what you need in cash on closing day, and whether buying beats renting for the years you will stay.
Worth knowing before you start
- First-time buyers get real money. An FHSA lets you save $8,000 a year tax-free for a down payment. The Home Buyers’ Plan lets you take $60,000 from an RRSP. Ontario, BC, PEI and Quebec rebate part of the land transfer tax.
- The minimum down payment is 5% of the first $500,000 and 10% of the rest. Under 20% down you pay mortgage insurance, but you can also get a 30-year amortization as a first-time buyer.
- You must qualify at your rate plus 2% (at least 5.25%), so the payment the bank tests is higher than the one you will make.
- Budget 1.5% to 4% of the price for closing costs on top of the down payment: land transfer tax, legal fees, title insurance and adjustments.
The steps, in order
- 1 How much can I afford?Your maximum price, and a comfortable one, using the tests lenders use.Open the Affordability calculator →
- 2 What will it cost each month?The payment plus tax, heat and insurance, and the cash you need on closing day.Open the Mortgage payment calculator →
- 3 What do I pay at closing?Land transfer tax for your province and city, with the first-time buyer rebate if you qualify.Open the Land transfer tax calculator →
- 4 Should I buy at all?Whether buying beats renting for the years you plan to stay, with the rent that flips it.Open the Rent vs buy calculator →