Canadian mortgage calculator with land transfer tax

Canadian semi-annual compounding. Closed fixed-rate mortgages in Canada are compounded semi-annually, not in advance. The calculator converts the stated annual rate into the correct effective monthly rate using the formula (1 + annual/2)(1/6) - 1, then applies the standard mortgage amortization formula. Variable-rate mortgages use monthly compounding; this calculator models the fixed-rate case.

CMHC insurance. When the down payment is less than 20% of purchase price, federal regulations require mortgage default insurance. The calculator applies the published CMHC premium schedule: 4.00% (down payment 5% to less than 10%), 3.10% (10% to less than 15%), 2.80% (15% to less than 20%), and 0% (20%+).

Ontario Land Transfer Tax (provincial). Applied on a marginal basis: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% above $2,000,000.

Toronto Municipal Land Transfer Tax. Applied only for purchases in the City of Toronto, including Scarborough. Calculated marginally: 0.5% on the first $55,000; 1.0% on $55,001 to $250,000; 1.5% on $250,001 to $400,000; 2.0% on $400,001 to $2,000,000; 2.5% on $2,000,001 to $3,000,000; 3.5% on $3,000,001 to $4,000,000; 4.5% on $4,000,001 to $5,000,000; 5.5% on $5,000,001 to $10,000,000; 6.5% on $10,000,001 to $20,000,000; 7.5% above $20,000,000 (the City of Toronto's luxury home tax tiers as set out in by-law).

First-time buyer rebates. For first-time buyers, the calculator deducts up to $4,000 from the Ontario LTT and up to $4,475 from the Toronto MLTT (Scarborough purchases only). Rebates cannot exceed the actual tax due.