20% down on a $600,000 house = $120,000. Here’s the complete breakdown.
Down Payment Rules (Over $500K)
For homes over $500,000, Canada’s minimum down payment rules change:
- 5% on first $500,000 = $25,000
- 10% on amount over $500,000 = $10,000
- Minimum total: $35,000 (5.83%)
| Down Payment % | Amount | Mortgage | CMHC Insurance |
|---|---|---|---|
| 5.83% (min) | $35,000 | $565,000 | $22,600 |
| 10% | $60,000 | $540,000 | $16,740 |
| 15% | $90,000 | $510,000 | $14,280 |
| 20% | $120,000 | $480,000 | $0 |
| 25% | $150,000 | $450,000 | $0 |
Total Cash Needed at Closing
| Expense | Amount |
|---|---|
| Down payment (20%) | $120,000 |
| Land transfer tax (Ontario) | $8,475 |
| Legal fees | $1,800 |
| Home inspection | $500 |
| Title insurance | $500 |
| Moving costs | $3,000 |
| Total cash needed | $134,275 |
Land Transfer Tax by Province
On a $600,000 home:
| Province | Land Transfer Tax |
|---|---|
| Ontario | $8,475 |
| BC | $11,000 |
| Quebec | $7,500 |
| Alberta | $0 |
| Toronto (additional) | +$8,475 |
In Toronto: Total = $16,950 before rebates.
Monthly Payment Comparison
At 5.5% interest, 25-year amortization:
| Down Payment | Mortgage | Monthly Payment | Total Interest |
|---|---|---|---|
| 5.83% (min) | $587,600* | $3,633 | $502,300 |
| 10% | $556,740* | $3,442 | $475,860 |
| 20% | $480,000 | $2,933 | $399,900 |
20% down saves $700/month compared to minimum down payment.
How Long to Save $120,000?
| Household Savings | Time to Save |
|---|---|
| $2,000/month | 5 years |
| $2,500/month | 4 years |
| $3,000/month | 3.3 years |
| $4,000/month | 2.5 years |
| $5,000/month | 2 years |
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