NOBLEREALTY

In Canada, the minimum down payment depends on the purchase price:

• For homes under $500,000, the minimum is 5%.
• For homes between $500,000 and $999,999, it is 5% on the first $500,000 and 10% on the remaining portion.
• For homes of $1,000,000 or more, the minimum down payment is 20%.

Land Transfer Tax is a provincial tax paid when acquiring property. In Toronto, buyers pay both the Ontario Provincial LTT and an additional Toronto Municipal LTT. First-time buyers can qualify for rebates up to $4,000 provincially and $4,475 municipally to offset these costs.

Closing costs are additional fees due upon completing a transaction. They include land transfer taxes, legal fees, title insurance, home inspection fees, and property tax adjustments. We recommend budgeting between 1.5% and 4% of the total purchase price for closing costs.

A pre-approval locks in a specific interest rate (usually for 90 to 120 days) and establishes your maximum budget. This prevents you from searching for properties outside your range and allows you to make firm, competitive offers that appeal to sellers.