Estimates to size up a purchase before you speak to a lender. Figures are indicative only — confirm with your mortgage broker and lawyer.
Ontario charges land transfer tax on every purchase; the City of Toronto charges a second, municipal tax on top of it.
Canadian lenders test your income against two ratios, and qualify you at a stress-test rate rather than the rate you are offered. This estimates the purchase price those rules allow.
An estimate only. Lenders apply their own rules to income type, credit, and debt, and the figures here assume property tax and heating at typical GTA levels. Get a written pre-approval before you make an offer.
How the balance falls over the life of the mortgage, and how much of each payment goes to interest rather than principal. An extra payment each month is often worth several years.
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Assumes a fixed rate for the full amortization and monthly compounding. Canadian fixed mortgages compound semi-annually and renew at the end of each term, so real figures will differ. Confirm with your lender.
Most moves are two transactions at the same time. This works out what your current home leaves you after the mortgage and the costs of selling, what the next one takes to close, and what the payment looks like afterwards.
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An estimate. Commission is shown with HST added, and legal fees, title insurance and adjustments are assumed at typical GTA levels. Your discharge penalty depends on your lender and the term remaining — ask them for the exact figure before you list.
Everything payable on closing beyond the down payment. Typical figures are shown beside each line — replace any of them with a real quote, and add your own.
Typical figures are ranges commonly seen on Toronto transactions, not quotes. Your lawyer, inspector and insurer will each give you a real number. Excludes moving costs, mortgage default insurance and HST on a new build.
Buying builds equity but ties up capital; renting keeps the capital free. This compares the two over the years you plan to stay.
Buying assumes the property is sold at the end of the period, with selling costs of five per cent. Renting assumes the down payment and any monthly saving are invested at the return above. Excludes income tax on investment gains.
The deposit is not the whole story. This totals every dollar due before the keys change hands.
Land transfer tax is calculated on the price above using the Ontario and Toronto schedules, less any first-time buyer rebate. Excludes moving costs, mortgage insurance premiums and HST on a new build.
Rates vary widely across the region. This estimates the annual bill on an assessed value.
Rates are approximate and change every year with each municipal budget. Ontario assessments are also based on a 2016 valuation date, which is not the same as market value. Confirm with the municipality.
Compare the rate you are on against an offer, and see what the change costs or saves over the term.
Assumes monthly compounding and no change to the amortization. Ask your lender about the semi-annual compounding they actually apply, and whether any penalty or fee attaches to switching.
The variable is a wager on where rates go. Pick a scenario and see how the bet plays out over the term — and exactly how big a rate move would change the answer.
Models an adjustable-payment variable: the payment is recalculated when the rate changes, keeping the original amortization. Some lenders instead hold the payment static, which shifts the difference into the balance at renewal. Assumes monthly compounding, no penalties or conversion. Nobody knows where rates go — that is the point of running more than one scenario.
How much of your home you own outright, and how much a lender would typically let you borrow against it.
Most lenders cap a refinance at eighty per cent of value and a HELOC at sixty-five. Qualification also depends on income and credit, so this is an upper bound rather than an approval.
When your purchase closes before your sale, a bridge loan covers the gap. This estimates what it costs.
Bridge rates typically run several points above prime and lenders usually require a firm sale agreement before advancing. Legal fees for the bridge are additional.
On a property that is not your principal residence, half the gain is taxable. This estimates what you would owe.
This assumes the property is not your principal residence and that the fifty per cent inclusion rate applies. Rules on inclusion rates and principal residence exemptions change — confirm with your accountant before relying on this.
How long until you have the down payment, and what it takes to get there sooner.
Canada requires five per cent down on the first $500,000, ten per cent on the portion between $500,000 and $1.5M, and twenty per cent above that. Returns are not guaranteed.
With less than twenty per cent down, mortgage default insurance is mandatory. The premium is added to the mortgage.
CMHC premiums apply to purchases under $1.5M with less than twenty per cent down; above that, twenty per cent is required and no premium applies. Ontario charges provincial sales tax on the premium, payable at closing rather than added to the mortgage.
The mortgage payment is rarely the whole cost. This totals everything a year of ownership actually takes, and averages it over twelve months.
Enter yearly figures; the monthly column is simply a twelfth. Condo fees are usually quoted monthly — enter twelve times the amount. Maintenance is commonly budgeted at one per cent of the property value each year for a house, less for a condominium where the fee covers the building.
Every ratio a lender or an experienced investor will ask for, from one set of figures.
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An estimate from the figures entered, not financial or tax advice. Excludes income tax on rental profit, CMHC premiums, land transfer tax and HST. Total return assumes the property is sold at the end of the holding period with five per cent selling costs. Confirm every assumption with your accountant and lender.