# Buying a home in Canada: the taxes and costs

> Buying a home in Canada? Find guides and calculators for down payment, CMHC insurance, closing costs, land transfer tax, new-home GST/HST and the FHSA.

The price on the listing is only the start of the bill. Between the down payment, insurance, land transfer tax and a pile of smaller fees, closing day can hold some nasty surprises. As a rule of thumb, set aside 1.5% to 4% of the price for closing costs alone, as the [Financial Consumer Agency of Canada's home buying page](https://www.canada.ca/en/financial-consumer-agency/services/buying-home.html) puts it. On a $500,000 home that works out to about $7,500 to $20,000 in cash, before the down payment.

This page groups what the site covers in the order you'll meet it. It's an information site, so there's nothing to buy here and no tax preparation on offer.

## How much home can I afford, and how much cash do I need?

Begin with the mortgage side. A pre-approval gives you a range, the stress test shows whether you would still qualify at a higher rate, and the down payment decides whether you pay mortgage default insurance. Run these numbers before you fall for a house.

- [How Much Mortgage Can You Afford in Canada?](https://tax-services.ca/calculators/mortgage/mortgage-affordability)Work out a price range from your income.

- [Mortgage Pre-Approval Amount Calculator](https://tax-services.ca/calculators/mortgage/mortgage-pre-approval)See what a lender might approve before you shop.

- [Mortgage Stress Test Calculator for Home Buyers](https://tax-services.ca/calculators/mortgage/mortgage-stress-test)Check you still qualify at a higher rate.

- [Monthly Mortgage Payment Calculator](https://tax-services.ca/calculators/mortgage/mortgage-calculator)Turn a price and a rate into a monthly payment.

- [Minimum Down Payment Calculator for Homes](https://tax-services.ca/calculators/mortgage/down-payment)The smallest down payment for your price.

- [CMHC Mortgage Insurance Premium Estimator](https://tax-services.ca/calculators/mortgage/cmhc-insurance)Estimate the premium if your down payment is under 20%.

- [Rent vs Buy: Which Path Builds More Wealth?](https://tax-services.ca/calculators/real-estate/rent-vs-buy)Compare the two paths before you commit.

## What do I pay at closing, on top of the price?

Closing costs are the bills that arrive in cash. The checklist lists them, the closing costs calculator estimates them, and the land transfer tax pages cover the biggest one in many provinces. New homes can add GST or HST, and foreign buyers may face an extra tax. Your lawyer gives you the final figure shortly before closing, so leave a cushion beyond the estimate.

- [Checklist: the costs and taxes of buying a home in Canada](https://tax-services.ca/checklists/buying-a-home)A printable list to take to your lender.

- [Home Closing Costs Estimator for Buyers](https://tax-services.ca/calculators/real-estate/closing-costs)Total up the cash you need beyond the down payment.

- [Land Transfer Tax by Province: What You Pay](https://tax-services.ca/articles/land-transfer-tax)Why Toronto buyers pay twice, and who pays nothing.

- [Land Transfer Tax Calculator for Canadian Homes](https://tax-services.ca/calculators/property-transfer-tax/land-transfer-tax)Every province, including first-time buyer refunds.

- [New Home GST and HST Rebate Calculator for Canada](https://tax-services.ca/calculators/sales-tax/gst-hst-new-housing-rebate)Check the rebate if you are buying new.

- [What foreign buyers pay when buying in Canada](https://tax-services.ca/articles/foreign-buyer-tax-canada)The extra tax for buyers who are not residents.

## Which programs help first-time buyers save?

A few tools come up again and again. Here is how they compare, with links to the details.

- [How the FHSA Works for First-Time Buyers in Canada](https://tax-services.ca/articles/fhsa-canada)Deductible going in, tax free coming out.

- [FHSA Room and Tax Savings for First Buyers](https://tax-services.ca/calculators/rrsp-retirement/fhsa-calculator)Your room and what the deduction saves.

- [How the First-Time Home Buyers' Tax Credit Works](https://tax-services.ca/articles/first-time-home-buyer-tax-credit-canada)A modest credit, and how to claim it.

| Program | What it does | Read more |
| --- | --- | --- |
| FHSA | Contributions are deductible, and withdrawals for a qualifying first home are tax free | FHSA article |
| Home buyers' tax credit | A $10,000 amount on your return, worth about $1,400 in federal tax | Credit article |
| Land transfer tax refunds | Some provinces refund part of the tax to first-time buyers | Land transfer tax calculator |
| RRSP Home Buyers' Plan | Take up to $60,000 out of your own RRSP with no tax withheld, then repay it over 15 years | CRA's Home Buyers' Plan page |

The Home Buyers' Plan is a loan from yourself, not a gift. For first withdrawals made from 2026 to 2028, repayment is deferred until the fifth year after the year of the withdrawal, and any yearly instalment you skip is added to your income.

## What taxes follow me once I own the place?

Property tax arrives every year and is set locally. Your own home is not taxed as income, and when you sell it, the gain is normally tax-free if you report the sale properly.

- [How Property Tax Works in Canada](https://tax-services.ca/articles/property-tax-canada)Assessment times rate, and who decides each.

- [Property Tax Calculator by Rate or Mill Rate](https://tax-services.ca/calculators/real-estate/property-tax)Estimate a yearly bill from the rate.

- [Capital Gains on Primary Residence: When You Owe Tax](https://tax-services.ca/articles/capital-gains-on-primary-residence)The exemption, and the form you still need to file.

- [Buying or selling a home: what changes for your taxes](https://tax-services.ca/life-events/buying-or-selling-a-home)The tax picture from purchase to sale.

## What catches first-time buyers off guard?

- Treating the down payment and the closing costs as one pile of money. Sam in Calgary saves for a down payment, then learns the closing costs need a separate pot of cash.

- Forgetting that a new build can carry GST or HST on top of the price, so ask whether the quoted price already includes it.

- Tossing the purchase papers. You'll want them when you sell, and a ballpark memory of what you paid won't do.

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Source: https://tax-services.ca/buying-a-home-costs-and-taxes
Last updated: 2026-10-05
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer