How land transfer tax works in Canada
When you buy a home, most provinces charge a one-time land transfer tax based on the purchase price, paid on closing day. It's usually your single largest closing cost, and it catches a lot of first-time buyers off guard because it can't be rolled into the mortgage, you pay it in cash. The rate is marginal, meaning each slice of the price is taxed at its own rate.
It varies a lot by province: Ontario runs 0.5%–2.5% with a first-time rebate up to $4,000; Toronto adds a municipal tax that roughly doubles the bill (with its own rebate up to $4,475); BC is 1%–5% with a full first-time exemption on qualifying homes up to $835,000; and Alberta, Saskatchewan and the territories have no transfer tax at all, just smaller registration fees. Once you know your closing costs, see what you can afford with the pre-qualification calculator, or estimate your payment with the payment calculator.