How much does it cost to buy a house in GTA?
Buying a Toronto house is potentially your greatest investment. This statement applies to everyone buying a home, but it is particularly valid for those looking at the cost of buying a house in Toronto, Canada's most expensive area.
How much will it cost to buy a house? The cost of the home and the purchase-related facilities are all proportional to the type of house, its age/condition and location, so do your homework to ensure that it remains a good investment.
You need down payment: If the home is below $500,000, the minimum down payment will be five per cent. If the price is from $500,000-$999,999, the down payment is five per cent on the first $500,000, and 10 per cent on the remaining amount.
While five per cent is the minimum down payment, anything below 20 per cent is considered a high-ratio mortgage and requires mortgage loan insurance. To avoid paying this, you will need a down payment of 20 per cent or more.
Closing costs are approximately around 2 to 3% of the purchase price including: legal fees, land transfer tax and etc.
As of now (January 2021), the average selling price for all type home is approximately $960,000. Thus, you need $210,000 to $230,000 cash to buy a house in GTA.