How mortgage qualification, land transfer tax, and first-time buyer rules work in Ontario, plus the 149 cities we cover.
By the Mortgagor.ca Editorial Team · Updated 2026-09-16
Mortgages in Ontario are governed by the same federal rules that apply across Canada — the mortgage stress test, maximum amortization periods, minimum down payments, and mortgage default insurance requirements set by OSFI, the Department of Finance, and CMHC. The province adds its own layer: land transfer tax and any first-time buyer rebate, the licensing and conduct rules for mortgage brokers, and provincial consumer protection law.
Federal rules that apply in Ontario
Every federally regulated lender in Ontario applies the mortgage stress test: you must qualify at the higher of your contract rate plus two percentage points, or the published qualifying-rate floor. Insured mortgages (those with a down payment under 20%) are limited to a 25-year amortization, while uninsured mortgages may extend to 30 years. Minimum down payment is tiered: 5% on the first $500,000 of purchase price, 10% on the portion between $500,000 and $1,500,000, and 20% at or above $1,500,000.
Ontario land transfer tax and rebates
Land transfer tax is charged on the value of the consideration: 0.5% up to $55,000; 1% from $55,000 to $250,000; 1.5% from $250,000 to $400,000; 2% above $400,000; and 2.5% above $2,000,000 for land with one or two single-family residences. A Non-Resident Speculation Tax may also apply. First-time buyer treatment: First-time home buyers may claim a refund of up to $4,000 of provincial land transfer tax (since January 1, 2017). Toronto has an additional municipal land transfer tax.
Most mortgage qualification rules in Canada are federal, so the stress test, maximum amortization, and minimum down payment apply in Ontario the same as elsewhere. What differs provincially is land transfer tax and its first-time buyer rebate, the rules for mortgage brokers, and some consumer protection provisions.
Is there land transfer tax in Ontario?
Land transfer tax is charged on the value of the consideration: 0.5% up to $55,000; 1% from $55,000 to $250,000; 1.5% from $250,000 to $400,000; 2% above $400,000; and 2.5% above $2,000,000 for land with one or two single-family residences. A Non-Resident Speculation Tax may also apply. First-time buyer treatment: First-time home buyers may claim a refund of up to $4,000 of provincial land transfer tax (since January 1, 2017).. Confirm the current rules and rates with the provincial government before you close.
How much can I afford in Ontario?
Affordability depends on your income, debts, down payment, and the rate you qualify at, not on the province. Use our affordability calculator to estimate a maximum purchase price from your own numbers, then confirm with a lender.
Which Ontario cities do you cover?
We cover 149 Ontario cities and communities with a population of about 10,000 or more, using 2021 Census population data from Statistics Canada. Pick your city for local context and a prefilled calculator.
