Home Purchase Calculator
Use our home purchase calculator to estimate the total costs of buying a home in Canada. Input your purchase price, down payment, and other relevant details to get an accurate picture of your financial commitments. Our calculator will automatically determine your CMHC mortgage insurance, land transfer taxes, and other closing costs.
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How Our Home Purchase Calculator Works
The Home Purchase Calculator provides a comprehensive breakdown of the costs associated with buying a home in Canada. Here's how each input and calculation works:
- Purchase Price: The total amount you're paying for the home.
- Down Payment: Enter either a specific dollar amount or a percentage of the purchase price. If your down payment is less than 20%, CMHC mortgage insurance will be required.
- CMHC Mortgage Insurance: Calculated automatically if the down payment is less than 20% of the purchase price. You can choose to add this insurance to your loan or pay it upfront as a closing cost.
- Land Transfer Tax: Automatically calculated if you select Ontario as your province. If the property is in Toronto, the Municipal Land Transfer Tax is also included.
- Other Closing Costs: You can add any additional closing costs either as a specific dollar amount or as a percentage of the purchase price.
By adjusting these inputs, you can get a clear understanding of the total costs involved in purchasing a home and ensure that you are financially prepared for all eventualities.
Frequently Asked Questions (FAQ)
A down payment is the initial amount of money you pay towards the purchase of a home. It’s expressed as either a percentage of the purchase price or a specific dollar amount. A higher down payment can reduce your monthly mortgage payments and the amount of mortgage insurance you need to pay.
CMHC mortgage insurance is required in Canada if your down payment is less than 20% of the home’s purchase price. This insurance protects the lender in case you default on your mortgage. The premium is calculated as a percentage of your loan amount and can be added to your mortgage or paid upfront.
Land Transfer Tax (LTT) is a tax paid to the province when you purchase a property. In Ontario, LTT is calculated as a percentage of the purchase price. If you’re buying in Toronto, you’ll also need to pay a Municipal Land Transfer Tax. These taxes are typically paid at closing.
In addition to the down payment and mortgage insurance, you should budget for other closing costs, such as legal fees, appraisal fees, title insurance, and adjustments for property taxes or utilities. These costs can be a percentage of the purchase price or a fixed amount.
You can reduce your closing costs by negotiating with your lender, shopping around for service providers, and being aware of any rebates or incentives offered by your province or municipality. For example, first-time homebuyers in Ontario may be eligible for a rebate on Land Transfer Tax.