Canadian Home Ownership Cost Calculator


For a detailed explanation of how the calculations are done, please visit our Calculation Explanation Page. For output description, click here.

Output Description

Total Monthly Payment: The total monthly amount the homeowner needs to pay, including mortgage, insurance, taxes, utilities, and maintenance fees.

Cash Gain After Sell: The amount of cash gained after selling the house, subtracting buying and selling costs.

Real Monthly Payment: The actual monthly payment, adjusted by considering the equity gain and other costs.

Mortgage Monthly Payment: The monthly payment towards the mortgage loan.

Equity Monthly Gain: The monthly equity gain, adjusted by considering buying and selling costs.

House Tax per Year / Month: The annual and monthly property tax amounts based on the house price.

House Selling Cost: The cost incurred when selling the house, calculated as a percentage of the selling price.

First Holding Years Principal: The principal amount paid in the first specified years of holding the property.

First Holding Years Interest: The interest amount paid in the first specified years of holding the property.

True Cost of Homeownership: Unveiling the Full Financial Picture (Canadian Focus)

This innovative Canadian Homeownership Cost Calculator goes beyond basic monthly mortgage estimates. It tackles the challenge of providing a comprehensive picture of homeownership costs, including buying and selling expenses, that most traditional calculators neglect.

What Sets Our Tool Apart:

The result? You gain a comprehensive understanding of Canadian homeownership costs over time, empowering you to make informed financial decisions when buying a home.


Steps to Buy a House in Canada

Section 1: Finding a House and Submitting an Offer

  1. Determine Your Budget and Get Pre-approved:
    • Calculate your budget based on your finances, including savings, income, and potential mortgage approval.
    • Get pre-approved for a mortgage to understand your borrowing capacity and to strengthen your offer when you find a house.
  2. Hire a Real Estate Agent:
    • Find a licensed real estate agent who specializes in the area where you want to buy.
    • Your agent will help you find suitable properties, schedule viewings, and provide guidance throughout the process.
  3. Search for Properties:
    • Work with your agent to search for properties that meet your criteria (location, size, amenities, budget, etc.).
    • Attend open houses and private viewings to inspect the properties you're interested in.
  4. Conduct Due Diligence:
    • Research the neighborhood, including amenities, schools, transportation, and future development plans.
    • Review the property's history, including previous sales, renovations, and any potential issues (e.g., structural problems, liens).
  5. Submit an Offer:
    • Work with your agent to draft a written offer that includes your proposed purchase price, deposit amount, conditions (e.g., financing, home inspection), and closing date.
    • Your agent will present the offer to the seller's agent, who will communicate it to the seller.
  6. Negotiate Terms:
    • Negotiate with the seller until both parties agree on the terms of the sale.
    • Be prepared for counter-offers and negotiate on price, conditions, or other terms as needed.
  7. Acceptance of Offer:
    • Once both parties agree on the terms and conditions, and the offer is signed by both buyer and seller, it becomes a legally binding agreement (pending conditions being met).

Section 2: Steps After Accepting Your Offer

  1. Fulfill Conditions:
    • Complete any conditions outlined in the offer, such as arranging financing, conducting a home inspection, or reviewing condominium documents (if applicable).
    • If conditions are not met satisfactorily, you may renegotiate or withdraw your offer.
  2. Secure Financing:
    • Finalize your mortgage financing with your lender, providing all required documentation.
    • Your lender may require an appraisal to confirm the property's value.
  3. Review and Sign Documents:
    • Review the purchase agreement and related documents with your real estate lawyer.
    • Sign the necessary documents, including the purchase agreement, mortgage documents, and any legal disclosures.
  4. Arrange for Insurance:
    • Secure home insurance for your new property, providing proof to your lender before closing.
  5. Complete the Closing Process:
    • Transfer the deposit amount to the seller or their representative.
    • Your lawyer or notary will register the property in your name and transfer funds to the seller's lawyer or notary.
  6. Final Walkthrough:
    • Conduct a final walkthrough of the property to ensure it's in the agreed condition before closing.
  7. Close the Deal:
    • On the closing day, your lawyer or notary will transfer the remaining funds to the seller's lawyer or notary, and you'll receive the keys to your new home.
  8. Register the Property:
    • Your lawyer or notary will register the property under your name with the appropriate land registry office.
  9. Move In:
    • Arrange for moving logistics, utilities transfer, and any necessary renovations or repairs.

Steps to Get a Good Mortgage in Canada

  1. Check Your Credit Score:
    • Review your credit report to ensure it's accurate and in good standing.
    • Take steps to improve your credit score if necessary.
  2. Calculate Affordability:
    • Assess your financial situation to determine how much you can afford to borrow.
    • Consider factors such as your income, debts, expenses, and down payment.
  3. Compare Mortgage Options:
    • Research different mortgage lenders, including banks, credit unions, and mortgage brokers.
    • Compare interest rates, terms, and features to find the best mortgage for your needs.
  4. Get Pre-approved:
    • Apply for mortgage pre-approval to obtain a conditional commitment from a lender.
    • Pre-approval demonstrates your serious intent to buy and can strengthen your offer.
  5. Provide Documentation:
    • Submit required documents such as proof of income, employment verification, and asset statements.
    • Be prepared to provide additional documentation as requested by the lender.
  6. Negotiate Terms:
    • Review the mortgage terms and conditions carefully.
    • Negotiate with the lender to secure favorable terms, including interest rates and repayment options.
  7. Finalize Mortgage Approval:
    • Once approved, review the final mortgage offer from the lender.
    • Understand all terms and conditions before signing the mortgage documents.
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