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Costs

The following is an estimate of the costs associated with the normal operation of a home in the Toronto area. As costs vary from one area of the city to another, these figures should only be used as a guideline.

Realty Taxes

Property owners have the option of paying their property taxes in eight instalments over the course of the calendar year. Mortgage companies may require that they pay the property tax and collect it with your monthly mortgage payment. Realty taxes range from $1,800 to $6,000 or more per year depending on the size and location of the property. These figures are available on every property listing.

Heating

Home heating is usually provided by natural gas, oil or electricity. Costs vary depending on the type of fuel, size of the home, amount of insulation, exposure and usage. The average cost of heating a home with gas or oil is $75 to $200 or more per month. Electricity is usually more expensive. Costs vary greatly depending on usage, but the average monthly expense for a four-person family is $100 to $250 or more. Billing is generally every two months.

Insurance

Insurance is essential for all homeowners and is required by your mortgage company before releasing the funds to close the deal. Premiums are based on the replacement cost of the building and start at around $550 per year.

Water & Sewage

Most properties in Toronto are now on water meters and are billed according to usage. Some older parts of the city are still on a flat rate and property owners pay approximately $600 a year or more for both services.

Repairs

A homeowner should budget 1%-2% of the purchase price of the home per year for ongoing maintenance and repairs to the home.

Mortgage costs are the amount that it costs to borrow per month as per the bank rates. Type in your loan amount to see you cost:

Mortgage Calculator

Below is a table to calculate your mortgage insurance costs. Mortgage insurance is calculated based on the amount of your down payment. If you put down more than 20%, no mortgage insurance is required. Mortgage insurance is a one-time cost and can be amortized over the life of the mortgage.

CMCH Costs
% Down CMHC Fee Cost/$100k Mt
5% 2.75% $2,750
10% 2.00% $2,000
15% 1.75% $1,750
20% 0% $0

Additional Costs of Buying

Home Inspection

A home inspection is strongly recommended for most residential properties and is often a condition of the offer. Your agent can assist you in choosing a home inspector. The cost will vary depending on the value, age and use of the property, and will usually range from $350 to $600.

Termite Inspection

You may wish to hire a termite inspector, as well as a home inspector, if you are buying in an area of the city where termites are known to be a problem. This could add another $250 or more to the cost of your inspection.

Appraisal Fees

When you apply for a mortgage, the lender will want to see an appraisal of the property to ensure that the price you are paying falls within the accepted range of value for that type of property and that area of the city. The fee for this is usually $235 or more. Depending on the lender, this fee can sometimes be waived.

Land Survey

When you make an offer on a freehold property, you will usually ask the vendor to provide a copy of the survey for the property. The purpose of this survey is to show the boundaries as well as the footprint of the building on the site. If there is no survey available, you may wish to hire a surveyor to prepare one at a cost of approximately $1500 or more.

Title Insurance

Although widely used in the United States for many years, title insurance is relatively new in Canada. It provides insurance against the future costs of remedying most problems with the title on your property. Ask your agent to explain the benefits and the cost of this service. The cost ranges from $250 or more.

Land Transfer Tax

See the Land Transfer Tax Calculator to calculate the cost based on the property price.

Land Transfer Tax Calculator

Applicable Taxes

Buyers are responsible for paying applicable taxes on appraisal services, land survey, home inspection, termite inspection, lawyer's fees and on the premium charged on CMHC loans.