Buying Property in Canada (Ontario): What It Actually Costs
Whether you're buying your first investment property or expanding your portfolio, understanding all the upfront and ongoing costs is essential. This guide walks you through every tax, fee, and expense you can expect — so there are no surprises on transfer day.
Budget 8–10% above the purchase price for taxes and fees when buying property in Canada (Ontario). The calculator below gives you an exact figure for your situation.
Land Transfer Tax (Ontario)
Ontario provincial land transfer tax. Progressive brackets apply — you pay the rate only on the portion within each bracket. First-time buyers may receive up to a $4,000 rebate.
Land Transfer Tax (Ontario) works on a sliding scale — you only pay the higher rate on the portion of the price that falls within each band, not on the full purchase price.
| Property value | Rate | Tax on this band |
|---|---|---|
| R 0,00 – R 55 000,00 | 1% | Up to R 275,00 |
| R 55 000,00 – R 250 000,00 | 1% | Up to R 1 950,00 |
| R 250 000,00 – R 400 000,00 | 2% | Up to R 2 250,00 |
| R 400 000,00 – R 2 000 000,00 | 2% | Up to R 32 000,00 |
| R 2 000 000,00 and above | 3% | 3% of amount above R 2 000 000,00 |
What You'll Pay at Transfer
On top of the transfer tax, there are several legal and administrative fees that you need to budget for. Here's what to expect.
Transfer / conveyancing fees
These fees apply whether you're paying cash or taking out a bond.
Bond registration fees (only if you're taking a bond)
If you're financing your purchase with a home loan, the bank's bond also needs to be registered at the Deeds Office. These are the fees for that process.
Agent Commission
Total real estate commission (listing + buyer agent) is typically 4–5% of the sale price + 13% HST. The seller pays. Rates are negotiable.
Your Monthly and Annual Costs as an Owner
The purchase price is just the beginning. As a property owner in Canada (Ontario), you'll have recurring costs that eat into your rental income. Knowing these upfront helps you model realistic returns.
- annualProperty TaxAnnual property tax based on assessed value × municipal tax rate. Toronto is ~0.75%, other Ontario cities range from 0.7% to 1.5%+. Average Ontario homeowner pays C$7,000–C$8,000/year.Typically escalates ~2% per year
- annualHome InsuranceAnnual home/landlord insurance. Ontario average ~C$1,500–C$1,800/year for a detached house, C$400–C$1,000 for a condo unit.Typically escalates ~3% per year
- annualMaintenance & RepairsBudget for ongoing repairs and maintenance. Typically 1–2% of property value per year.Typically escalates ~3% per year
Additional costs for Condo / Apartment properties
- Condo FeesMonthly condo corporation fees. Ontario average ~C$650/mo. Covers building maintenance, common area utilities, insurance, reserve fund, and management.Charged monthly
Additional costs for Airbnb / Short-Term Rental properties
- STR Licence FeeToronto requires STR registration (C$390/year in 2026). STRs are restricted to principal residences with a 180-night/year cap for entire-home rentals. Other Ontario municipalities may have their own requirements.Charged annual
- Municipal Accommodation Tax (MAT)Toronto charges 8.5% MAT on short-term rental revenue (temporarily increased from 6%). Collected and remitted by platforms like Airbnb. Enter your estimated annual MAT cost.Charged annual
Don't forget escalation: Most recurring costs increase every year. Budget for 3–6% annual increases on rates, insurance, and maintenance. The ROI calculator lets you set a custom escalation rate for each expense.
When You Sell: Capital Gains Tax
When you sell a property for a profit, you'll pay Capital Gains Tax (CGT) on your gain. Canada (Ontario) uses an inclusion rate system — only a portion of your profit is added to your taxable income for the year.
How much of your gain is taxable?
| Who you are | Portion of gain included |
|---|---|
| Individual | 50% of your gain |
| Corporation | 50% of your gain |
| Trust | 50% of your gain |
That included amount is then taxed at your marginal income tax rate — not a separate flat rate.
Exemptions that reduce your CGT
Costs of Selling Your Property
When you eventually sell, there are costs that come out of your sale proceeds before you see the cash. Here's what to factor in when modelling your exit.
Buying as a Foreign National
- 1. Who can buy: Canadian citizens, permanent residents, protected persons, and work permit holders with 183+ days remaining on their permit. Diplomats and international organization members are also exempt.
- 2. Non-Resident Speculation Tax (NRST): Even for exempt buyers, Ontario charges a 25% NRST province-wide. Toronto adds an additional 10% municipal tax, bringing the combined rate to 35% for non-resident purchasers in Toronto.
- 3. Anti-flipping rule: Properties held for less than 365 days have gains taxed as 100% business income (not capital gains). No principal residence exemption applies. Exceptions exist for death, divorce, disability, job relocation, and insolvency.
- 4. Financing: Exempt non-residents can obtain mortgages but may need a 35%+ down payment. CMHC mortgage insurance (required for less than 20% down) is available to Canadian citizens and permanent residents.
- 5. First-time buyer benefits: Canadian citizens and PRs who have never owned property can receive land transfer tax rebates of up to $4,000 (Ontario) and $4,475 (Toronto municipal). Must occupy as principal residence within 9 months.
Which Property Type Is Right for You?
Different property types come with different income potential, vacancy assumptions, and cost profiles. Here's how the main types compare in our calculator defaults for Canada (Ontario).
- Agent commission
- 5.00%
- Vacancy rate
- 3%
- Rent escalation
- 3.5% p.a.
- Agent commission
- 5.00%
- Vacancy rate
- 4%
- Rent escalation
- 3.0% p.a.
- Agent commission
- 5.00%
- Vacancy rate
- 8%
- Rent escalation
- 3.0% p.a.
- Agent commission
- 5.00%
- Vacancy rate
- 25%
- Rent escalation
- 3.0% p.a.
Ready to Run the Numbers?
Our free calculator puts all of these costs together in one place — transfer duty, closing fees, ongoing expenses, bond repayments, and your projected exit return. Takes about 2 minutes.
Use the free Canada (Ontario) ROI calculator →