🇨🇦 Country Hub
Canadian property costs and rules: mortgage stress test, land transfer tax, closing costs, and the foreign-buyer rules that changed the market.
Last reviewed August 2026 — figures carry named sources
Canada is defined by two numbers: the mortgage stress test, which qualifies you at a rate above the one you actually pay, and land transfer tax, which most provinces charge at purchase. Add a cold-but-brutal lesson in carrying costs — property tax, heating, and maintenance on top of the mortgage — and you have the entire Canadian buying equation.
This hub covers the costs and the process for residents and foreign buyers alike, with the calculators that turn an asking price into a payment the bank would actually approve.
I am buying here
The same deal looks different in every country — deposits, taxes and holding costs all move the answer. Compare against the other hubs or the full stamp duty table:
The deposit is only the beginning — these are the costs that actually move your budget. Figures are illustrative country defaults; confirm live rates locally.
| Cost | Typical | Note |
|---|---|---|
| Minimum down payment | 5–20% | 5% up to $500k; 10% to $1m; 20%+ avoids CMHC insurance |
| Mortgage insurance (CMHC) | ~2.8–4% of loan | below 20% down, added to the mortgage |
| Land transfer tax | 0.5–2.5% bands | Ontario bands; Toronto adds a municipal tax |
| Legal + registration | $1,500–2,500 | closing lawyer, title, registration |
| Annual property tax | ~0.85% of value / yr | municipal, billed annually |
| Stress test | qualify at +2% | or the 5-year fixed rate floor, whichever is higher |
Turn an asking price into the numbers you can carry:
Lenders qualify you at the greater of your contract rate plus 2% or the 5-year fixed posted rate floor. That higher rate decides the loan you are approved for, so the payment that fits your budget may not be the payment the bank approves.
Most provinces charge it at purchase — Ontario's bands run 0.5% to 2.5% of price, and Toronto adds a municipal tax on top, so a $1m Toronto home can carry roughly $33,000 in LTT alone. Budget it into cash-to-close, not the mortgage.
Purchases by non-residents face extra scrutiny and costs: Ontario's NRST adds 25% on top of LTT in many areas, financing is harder with larger deposits, and rules change frequently — confirm current provincial policy before offering.
Educational content. Figures use illustrative country defaults with named, dated sources and are not legal, tax, or valuation advice. Property rules, fees, and taxes change — confirm every number with a qualified local professional before you commit.
