How Much Money Do You Need to Buy a House in Ontario?

Most people start with one number: the down payment. But the cash you need to buy a house in Ontario is really a short list of separate amounts, and the ones people miss are the ones due on closing day. This guide walks through each piece using London-area price points, with the arithmetic shown so you can redo it for your own budget.

Piece one: the down payment

Canada sets a minimum down payment based on the purchase price. According to the Financial Consumer Agency of Canada, it is:

• 5% of the first $500,000
• plus 10% of the portion from $500,000 to $1.5 million
• 20% for homes at $1.5 million and over

Applied to two examples:

• $450,000 home: 5% x $450,000 = $22,500
• $600,000 home: 5% x $500,000 = $25,000, plus 10% x $100,000 = $10,000, for $35,000

Those are floors. A bigger down payment lowers your mortgage and your monthly payment, and a down payment of 20% or more avoids mortgage default insurance entirely. For more detail, see our guide to down payments and CMHC insurance.

Piece two: mortgage default insurance

If your down payment is under 20%, your mortgage must be insured. CMHC says homeowner insurance requires a purchase price below $1,500,000, and premiums run from 0.60% to 4.50% of the loan depending on how much of the price you are borrowing. The smaller your down payment, the higher the percentage.

Two practical points. First, the premium is usually added to your mortgage balance rather than paid in cash. Second, Ontario charges provincial sales tax on the premium, and that tax generally cannot be rolled into the mortgage, so it is a cash cost at closing. Ask your lender or mortgage broker for the exact premium on your price and down payment rather than guessing from the range.

Piece three: Ontario land transfer tax

Ontario’s land transfer tax is charged in slices on the purchase price. Per Ontario.ca, the residential rates are 0.5% up to $55,000, 1.0% from $55,000 to $250,000, 1.5% from $250,000 to $400,000, and 2.0% above $400,000 (2.5% above $2 million only for land with one or two single-family residences).

Worked example: $450,000

• $55,000 x 0.5% = $275
• $195,000 x 1.0% = $1,950
• $150,000 x 1.5% = $2,250
• $50,000 x 2.0% = $1,000

Total: $275 + $1,950 + $2,250 + $1,000 = $5,475.

Worked example: $600,000

The first $400,000 is the same $4,475 that Ontario.ca uses in its own example. Then $200,000 x 2.0% = $4,000.

Total: $4,475 + $4,000 = $8,475.

The first-time buyer refund

Eligible first-time buyers can receive a refund of up to $4,000. You must be at least 18, a citizen or permanent resident, occupy the home within nine months, and never have owned a home anywhere in the world; you apply within 18 months of registration (see Ontario.ca). If you qualify, the net tax is $5,475 - $4,000 = $1,475 at $450,000 and $8,475 - $4,000 = $4,475 at $600,000. Our land transfer tax guide covers the details, including the 25% Non-Resident Speculation Tax.

Piece four: legal fees and other closing costs

We are deliberately not quoting dollar figures here, because they vary by lawyer and by transaction. What you should expect to see on a lawyer’s statement of adjustments is:

• Legal fees and disbursements for the title search, registration and closing paperwork
• Land transfer tax, collected through your lawyer
• Adjustments for things the seller has already paid, such as property taxes or utilities, which are split as of the closing date
• Provincial sales tax on mortgage insurance, if your mortgage is insured
• A home inspection, which you pay for before closing
• Moving costs, insurance and utility set-up, which are not on the lawyer’s statement but still need cash

If you are buying a condo, add the status certificate review, covered in our condo versus house article. Ask your lawyer for an estimate before you make an offer, not after. Your property tax bill after closing is covered in our London property tax guide.

Piece five: your deposit

With an offer, you provide a deposit that is held in trust by the listing brokerage and applied to the purchase price on closing. The amount is something you negotiate and set in the Agreement of Purchase and Sale, so confirm it with your representative and lawyer. It is part of your down payment, not an extra cost, but it has to be available quickly, so do not leave it in an account that takes days to access.

Where the money can come from

Two federal programs help first-time buyers build and use savings:

• Home Buyers’ Plan (HBP): You can withdraw up to $60,000 from your RRSP. For first withdrawals between January 1, 2026 and December 31, 2028, the 15-year repayment period starts in the fifth year after the year of your first withdrawal (CRA).
• First Home Savings Account (FHSA): $8,000 annual limit, $40,000 lifetime, with unused room carrying forward up to $8,000.

Both have eligibility conditions and rules about timing, so read the CRA pages or speak with an accountant before moving money. Our first-time buyer programs guide lays them out alongside the land transfer tax refund.

Putting it together

For a $450,000 purchase with the minimum down payment, the cash you can pin down is $22,500 for the down payment plus $5,475 of land transfer tax, or $27,975 before any refund, legal fees, inspection, mortgage insurance tax and moving costs. At $600,000, it is $35,000 plus $8,475, or $43,475 before the same extras. Treat those as the starting numbers, then add your lawyer’s estimate and a cushion.

If you would like help building a realistic budget for London and the surrounding area, browse our buyer resources or get in touch.