DON’T START WITH A HOME. START WITH A PLAN.
How Much Cash Do You Need to Buy a $600,000 Home in Toronto? (2026 Guide)
Watch: how much cash do you need?
Richard explains the down payment, land transfer taxes and closing costs. Use the written breakdown below to check the assumptions and plan your own purchase.
Watch on YouTube · Read the cash breakdown
The article is an expanded planning example, not a verbatim transcript. Legal fees and other allowances vary; use the assumptions shown below.
For an eligible first-time buyer using the minimum $35,000 down payment, this worked example needs approximately $48,400–$49,400 in upfront cash, including estimated closing costs. It assumes full Ontario and Toronto refunds and the insurance premium added to a 25-year mortgage.
This is a planning example for an ordinary $600,000 owner-occupied resale purchase inside the City of Toronto. It is not a guaranteed minimum for every transaction or a mortgage approval. New-build HST, foreign-buyer taxes and special assessments are outside this example.
PURCHASE PRICE · $600,000
Your upfront cash at a glance
- Minimum down payment
- $35,000
- Ontario LTT after eligible refund
- $4,475
- Toronto MLTT after eligible rebate
- $4,000
- Legal fees & disbursements All-in planning allowance
- $2,000–$3,000
- Other closing costs Includes insurance tax and Toronto fee
- About $2,924
This is how much cash you’ll need to buy a $600,000 home in this example.
Rounded to the nearest $100. Legal fees and the smaller-cost allowance are estimates, not fixed charges. Actual costs and adjustments can exceed this range.
FIRST · THE DOWN PAYMENT
Why the minimum is $35,000
For this price, the minimum combines two parts:
- 5% of the first $500,000 = $25,000
- 10% of the remaining $100,000 = $10,000
$25,000 + $10,000 = $35,000, or about 5.83% of the purchase price. Simply taking 5% of $600,000 would leave you short.
You can choose to put more down
A 10% down payment is $60,000. A 20% down payment is $120,000. These are choices above the standard minimum. Mortgage insurance is typically needed below 20%; your lender determines financing and may require more down.
Understand down payment requirements or work out what you can save each month.
THEN · LAND TRANSFER TAX
Toronto has two land transfer taxes
On this $600,000 purchase, Ontario LTT is $8,475 and Toronto MLTT is also $8,475 before refunds. The two programs have different maximum refunds.
Ontario
- Gross Ontario LTT
- $8,475
- Eligible first-time buyer refund
- −$4,000
- Net Ontario LTT
- $4,475
City of Toronto
- Gross Toronto MLTT
- $8,475
- Eligible first-time buyer rebate
- −$4,475
- Net Toronto MLTT
- $4,000
Combined net land transfer tax: $8,475. Without either refund, combined tax is $16,950. Properties elsewhere in Ontario do not pay Toronto’s municipal tax or administration fee.
See the tax arithmetic
Each gross tax uses the same brackets at this purchase price: $55,000 × 0.5% ($275), $195,000 × 1% ($1,950), $150,000 × 1.5% ($2,250) and $200,000 × 2% ($4,000). Total: $8,475 for each tax.
The refunds depend on eligibility
This example assumes the buyer meets both programs’ requirements: at least age 18, never owning a home or an interest in one anywhere in the world, Canadian citizenship or permanent residency at closing, and occupying the home as a principal residence within nine months. A spouse must not have owned a home while they were spouses. Timing and evidence matter; a later citizenship or residency change may require a separate application.
Buying together does not automatically mean a full refund. A qualifying non-spouse buyer’s ownership share can determine a partial refund. If a spouse owned only before becoming your spouse, the result may differ. Answer the calculator’s one- or two-buyer questions, review the incentive requirements and confirm the outcome with your real estate lawyer.
The example assumes eligible refunds are claimed at registration. If they are claimed later, more cash may be required at closing.
UNDERSTAND · INSURANCE & CLOSING COSTS
What else is in the cash estimate?
Mortgage default insurance
The base mortgage is $600,000 − $35,000 = $565,000. With this traditional down payment and a 25-year amortization, CMHC’s 4% premium is $22,600.
The example finances that premium, making the mortgage $587,600. The premium is therefore not added to the upfront cash total. You pay interest on it when financed.
Ontario’s 8% tax on the premium is $22,600 × 8% = $1,808. That tax cannot be financed into the insured loan and belongs in Other Closing Costs.
Mortgage default insurance protects the lender. Home insurance protects against covered property risks and is a separate ongoing cost. An eligible 30-year insured mortgage uses a different premium; this example uses 25 years.
Legal fees & other closing costs
The $2,000–$3,000 legal range is an all-in planning allowance, including HST and disbursements, not a universal price. Ask for a written quote and check its inclusions.
Other Closing Costs combine known charges with a clearly identified allowance:
What’s included?
- Ontario tax on the mortgage insurance premium
- Toronto MLTT administration fee, including HST
- Inspection, if arranged
- Title insurance and registration costs, if not in your legal quote
- Closing adjustments, such as prepaid property tax or condo fees
Underlying calculation: $1,808 insurance tax + $115.89 Toronto fee ($102.56 + 13% HST) + a $1,000 planning allowance = $2,923.89, shown as about $2,924. The allowance is not a government charge. Replace it with your expected costs and avoid double counting legal-quote items.
Check the total
$35,000 + $4,475 + $4,000 + $2,000–$3,000 + $2,923.89 = $48,398.89–$49,398.89. Rounded: approximately $48,400–$49,400.
Your offer deposit counts toward the down payment, but its payment date may be earlier than closing. Moving costs, repairs and an emergency reserve are separate from this transaction estimate.
SEPARATE QUESTION · YOUR MONTHLY BUDGET
What will the home cost me each month?
Cash needed to buy and cash flow needed to own comfortably are different questions. Here is an illustrative monthly budget for the same purchase.
Example assumptions
- Down payment
- $35,000
- Mortgage with financed insurance
- $587,600
- Illustrative fixed interest rate
- 4.5%
- Amortization
- 25 years
- Payment frequency
- Monthly
4.5% is an example, not a current offer. Payments use Canadian fixed-rate semi-annual compounding. Rates and payments can change at renewal.
Estimated monthly ownership cost
- Mortgage payment
- About $3,252
- Property tax $3,600/year ÷ 12; example only
- $300
- Home insurance Editable example allowance
- $100
- Condo fees $0 for this non-condo illustration
- $0
The $3,600 property-tax and $100/month insurance figures are assumptions, not estimates tied to a particular property. Replace them with the tax bill and an insurance quote. Add the actual condo fee when considering a condo: a $500 fee, for example, would make this total about $4,152/month.
Part of the mortgage payment repays principal and builds equity; the rest pays interest. Property tax, condo fees and home insurance do not repay your loan. Budget separately for utilities, repairs and other household costs.
MAKE YOUR NEXT STEP USEFUL
Build a plan around your own numbers
Follow the Financial Readiness Roadmap to connect cash flow, debt, credit and your purchase plan.
Build your down payment
Understand the requirement and create a savings plan.
Estimate your mortgage capacity
Review income, debts and the difference between pre-qualification and approval.
Calculate land transfer tax
Check another purchase price or location.
Check your monthly comfort
Put housing costs in the context of your take-home income and everyday expenses.
FIRST-TIME BUYER PROGRAMS
Which incentives could support your purchase?
The Ontario and Toronto land transfer tax relief above depends on eligibility. Other programs work differently: an FHSA can help eligible buyers save with tax advantages, while the Home Buyers’ Plan permits eligible withdrawals from your own RRSPs with repayment rules. Neither withdrawal is an extra government grant.
The federal Home Buyers’ Amount is a later income-tax benefit, so it is not counted as closing cash in this example. New-home GST/HST relief has separate requirements and is not included for this ordinary resale purchase.
Compare first-time home buyer incentives, eligibility and how to claim. For a welcoming explanation, explore our free FirstHomeGTA workshops.
Questions buyers often ask
Is $600,000 enough to buy a home in Toronto?
That budget may suit some properties, but options depend on neighbourhood, property type and listings available when you search. A purchase budget is also different from mortgage approval. Estimate your borrowing capacity and explore GTA neighbourhoods.
What is the minimum down payment on a $600,000 home?
$35,000: $25,000 on the first $500,000 plus $10,000 on the remaining $100,000. This is about 5.83% of the price. A lender may require more based on your circumstances.
Do first-time home buyers pay land transfer tax in Toronto?
Yes, tax can remain after refunds. In this $600,000 example, full eligible refunds reduce Ontario tax to $4,475 and Toronto tax to $4,000, for $8,475 combined. Check refund eligibility.
Can mortgage insurance be added to my mortgage?
The premium can generally be financed. This example adds $22,600 to the $565,000 base mortgage. You then pay interest on the financed premium. Mortgage default insurance protects the lender; it is separate from your home insurance.
Do I have to pay tax on mortgage default insurance?
In Ontario, the premium is subject to 8% provincial sales tax, often called PST or RST. Here that is $1,808. It cannot be added to the insured loan and is included in upfront Other Closing Costs.
How much should I budget for legal fees when buying a home?
This page uses a $2,000–$3,000 all-in planning allowance, not a quote or government fee. Ask your lawyer for a written estimate including HST and disbursements, and whether title insurance and registration are included. Avoid counting the same item twice.
What if I’m buying with someone who isn’t a first-time home buyer?
You may receive a partial refund based on ownership share, or spouse-history rules may change eligibility. Prior ownership before becoming spouses does not automatically disqualify the first-time buyer. Use the calculator’s buyer questions and confirm with your lawyer.
Do I need more money than the minimum down payment?
Yes. Land transfer tax, legal costs and other closing expenses are additional. Your offer deposit is part of your down payment, not another purchase cost, but you may need it earlier. Also plan separately for moving, repairs and an emergency reserve.
Sources / Government Resources
Rules and figures reviewed October 19, 2026. The worked calculations use the rules linked below. Legal fees, the smaller-cost allowance, the rate, property tax and home insurance are illustrative assumptions.
- Government of Canada — minimum down payment and financing the insurance premium
- CMHC — mortgage default insurance premium schedule
- Ontario — land transfer tax rates
- Ontario — first-time home buyer refunds and joint purchases
- Ontario — retail sales tax on insurance
- Toronto — municipal land transfer tax rates and administration fees
- Toronto — first-time buyer rebate requirements
This resource is for education and planning. Your lender confirms financing; your real estate lawyer confirms taxes, eligibility and final closing costs. Costs depend on the buyer, property and transaction. Nothing here guarantees qualification or future home appreciation.
Contact Richard Lam about your first-home plan
You do not need to have every answer today. Use your own numbers, then work out the next useful step.
Contact Richard LamCall 416-899-8995 or email Richardlam@remax.net.
Use Your Own Purchase Numbers
This page is a worked $600,000 Toronto example. Estimate the cash needed for your own purchase with editable buyer, property and closing-cost information.