20% down on a $500,000 house = $100,000. Here’s the complete breakdown.
Down Payment Breakdown
| Down Payment % | Amount | Mortgage | CMHC Insurance |
|---|---|---|---|
| 5% (minimum) | $25,000 | $475,000 | $19,000 |
| 10% | $50,000 | $450,000 | $13,950 |
| 15% | $75,000 | $425,000 | $11,900 |
| 20% | $100,000 | $400,000 | $0 |
| 25% | $125,000 | $375,000 | $0 |
Total Cash Needed at Closing
| Expense | Amount |
|---|---|
| Down payment (20%) | $100,000 |
| Land transfer tax (Ontario) | $6,475 |
| Legal fees | $1,800 |
| Home inspection | $500 |
| Title insurance | $450 |
| Moving costs | $2,500 |
| Total cash needed | $111,725 |
Land Transfer Tax by Province
On a $500,000 home:
| Province | Land Transfer Tax | Notes |
|---|---|---|
| Ontario | $6,475 | First-time rebate up to $4,000 |
| BC | $8,000 | First-time exemption (homes up to $500K) |
| Quebec | $6,000 | No rebate |
| Alberta | $0 | No provincial LTT |
| Toronto (additional) | +$6,475 | First-time rebate up to $4,475 |
In Toronto: Total LTT = $12,950 (before rebates).
Monthly Payment Comparison
At 5.5% interest, 25-year amortization:
| Down Payment | Mortgage | Monthly Payment | Total Interest |
|---|---|---|---|
| 5% | $494,000* | $3,053 | $421,900 |
| 10% | $463,950* | $2,868 | $396,400 |
| 20% | $400,000 | $2,444 | $333,200 |
*Includes CMHC premium added to mortgage.
How Long to Save $100,000?
| Household Savings | Time to Save |
|---|---|
| $1,500/month | 5.6 years |
| $2,000/month | 4.2 years |
| $2,500/month | 3.3 years |
| $3,000/month | 2.8 years |
| $4,000/month | 2.1 years |
Tax-Advantaged Savings Strategy
| Account | Contribution | 4-Year Total |
|---|---|---|
| FHSA | $8,000/year | $32,000 |
| TFSA | $7,000/year | $28,000 |
| Combined | $15,000/year | $60,000 |
Plus investment growth, you could reach $70,000+ in 4 years.
