Buying a House in Ontario

The Ontario market in official numbers

Statistics Canada's new housing price index for Ontario is 116.9 (Sep 2026), down 3.4% vs 12 months earlier. It tracks new homes with the same specifications over time, not resale prices.

Housing starts are running at 47,594 units, annualized (Sep 2026). CMHC publishes rents and vacancy for metros rather than provinces; in Toronto, the purpose-built 2-bedroom rent is $2,045 (October 2025 survey) and vacancy is 3.00% (October 2025 survey).

Federal rules that apply everywhere

• You need at least 5% of the first $500,000, plus 10% of any part of the price above $500,000. At $1,500,000 or more, the minimum is 20%.
• The qualifying rate is the higher of your contract rate plus 2 percentage points or 5.25%.
• Default insurance is required with less than 20% down. In Ontario, provincial sales tax on the premium is paid in cash at closing.

Steps to buy

• Check your budget and credit, and estimate what you can afford at the stress-test rate.
• Save the down payment and closing costs; an FHSA and the Home Buyers' Plan can help first-time buyers.
• Get pre-approved so you know your maximum mortgage and can hold a rate.
• Make an offer with conditions you need, such as financing and inspection.
• Finalize the mortgage, arrange property insurance and complete closing with your lawyer or notary.

Ontario market conditions

New-home prices in Ontario, measured by Statistics Canada's new housing price index, are down 3.4% vs 12 months earlier. Housing starts over the latest 12 months total not published, not available.

For renters weighing a purchase, the average purpose-built two-bedroom rent is not published and the rental vacancy rate is not published.

Ontario land transfer tax

Ontario charges a tiered land transfer tax on every purchase, and first-time buyers may get a refund of part or all of it. Inside Toronto, a municipal land transfer tax applies as well.

Today's borrowing costs

On new uninsured mortgages, Canadians paid an average of 4.58% (Aug 2026) for fixed terms of five years or more and 3.90% (Aug 2026) for variable rates, according to the Bank of Canada. Insured borrowers paid 4.12% and 3.74%.

The Bank of Canada's policy rate is 2.50% (Nov 11, 2026) and the banks' prime rate is 4.70% (Nov 11, 2026). Variable rates move with prime; fixed rates follow Government of Canada bond yields, with the 5-year yield at 3.46% (Nov 10, 2026).