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Renting versus buying in Canada

Land transfer tax is provincial, and the Ontario scale is used here because it covers the largest share of Canadian purchases. It matters a great deal which province you are actually in. Alberta and Saskatchewan charge no land transfer tax at all. British Columbia runs 1% to 5%. And Toronto adds a municipal land transfer tax of roughly the same size again, so a Toronto purchase pays about double the figure shown above.

Canadian fixed-rate mortgages are compounded semi-annually rather than monthly, the half-yearly basis section 6 of the Interest Act permits a mortgage rate to be stated on, and this comparison applies that convention. The payment on a quoted 4.6% is therefore slightly lower than an American 4.6% would be. It is a real difference in convention, not a rounding choice, and it is why the monthly payment here will not match a US calculator fed the same numbers.

CMHC mortgage loan insurance is required by law on any loan above 80% of the price, at 0.6% to 3.15% of the loan depending on the loan-to-value band, and it is capitalised into the mortgage rather than paid up front. It is unavailable above a $1.5m purchase price, which is what forces a 20% deposit on an expensive home. This comparison does not include it; the mortgage calculator does, and the tool says so when your deposit would trigger it.

Municipal property tax rates run from about 0.3% in Vancouver to 1.7% in Winnipeg, so the 0.9% default is mid-range rather than typical of anywhere in particular.

For how the calculation works, the formula behind it and what it leaves out, see the full guide.

Data sources

  • Canadian land transfer tax and CMHC mortgage loan insurance

    Effective 2024-12-15 onward · retrieved 2026-08-30

    Land transfer tax is provincial and the Ontario scale is the default here. Canadian mortgage rates are compounded semi-annually under section 6 of the Interest Act, which this dataset tells the schedule to apply.

    How we checked these figures

    CMHC published premium table: 3.15% of the loan at 95% loan-to-value, 2.40% at 90% and 1.80% at 85%.

    Current

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page with the official sources they came from.

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Every CentExact calculator is built from the published finance formula, tested against spreadsheet, lender and tax-authority figures, and reviewed when the underlying rates or rules change.

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This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.