While a downpayment across Canada is typically 5%, Ontario has specific guidelines. For homes priced at $500,000 or less, you'll need a downpayment of at least 5%. However, if the home is between $500,000 and $1 million, it's 5% for the first $500,000 and 10% for the remainder. For homes exceeding $1 million, the downpayment is 20% of the total price.
Let's break it down with an example. If you're eyeing a $600,000 home, your downpayment would be $35,000. Keep in mind that setting aside extra funds for land transfer tax ($8475 outside of the Toronto area for the provincial portion and an extra $8475 for the municipal portion if you buy in Toronto), closing costs (lawyers fees etc.) and unforeseen expenses is wise.
Understanding these guidelines helps you plan your finances more effectively and you need to be aware of these costs before you dive into homeownership.
So, whether it's a cozy space or a larger investment, knowing the down payment requirements in Ontario is a key step in your home-buying journey. Happy planning! #BuyingAHome #WhatAreTheCostsAssociatedWithBuyingAHome #CostToBuyAHome #OakvilleRealtor