Toronto is the only municipality in Ontario that charges its own land transfer tax, stacked directly on top of the provincial one. That single fact makes Toronto the most expensive city in the province to close on a home purchase, and most pages written for this market either skip it or get the arithmetic wrong.
Pekoe.ca is a licensed mortgage brokerage that works with buyers, owners and investors across Toronto, bringing the full lender market to a transaction that a single bank branch can only size up against its own rate sheet.
Pekoe.ca is licensed by the Financial Services Regulatory Authority of Ontario (FSRA), Licence #13321, and serves all of Ontario, Toronto included, as a digital brokerage. The business is based in Kitchener-Waterloo, with an Alberta office in Canmore, and does not operate a Toronto storefront. Every Toronto file gets the same thing: full market access, with any fee disclosed in writing before you sign anything.
Why Toronto Costs More to Close On Than Anywhere Else in Ontario
Toronto buyers pay two land transfer taxes on every purchase. The Ontario land transfer tax applies everywhere in the province, and the Toronto Municipal Land Transfer Tax (MLTT) applies on top of it, only inside the city. No other Ontario municipality charges a municipal land transfer tax.
Both taxes are marginal, calculated bracket by bracket against the purchase price, not as one flat rate applied to the whole amount.
| Portion of purchase price | Ontario land transfer tax | Toronto MLTT, single family residence |
|---|---|---|
| Up to $55,000 | 0.5% | 0.5% |
| $55,000 to $250,000 | 1.0% | 1.0% |
| $250,000 to $400,000 | 1.5% | 1.5% |
| $400,000 to $2,000,000 | 2.0% | 2.0% |
| Over $2,000,000 (one or two single family residences only) | 2.5% | 2.5% to $3,000,000, rising in further tiers above that |
Toronto’s municipal schedule has a second, four-tier track for property that is not a single family residence, topping out at 2.0% on the portion above $400,000, the same ceiling as the provincial tax. The city also charges a flat MLTT administration fee of $102.56 plus HST on every transaction, separate from the tax itself, and a $221.22 processing fee if either rebate below is claimed after the deed has already been electronically registered. Land transfer tax is usually the largest single closing cost on a Toronto purchase, but it is not the only one: our closing costs guide for Ontario buyers covers the rest.
Here is how the two taxes interact on an illustrative Toronto purchase price of $1,050,000, a single home with no other complications, before any rebate is applied.
| Line item | Amount |
|---|---|
| Ontario land transfer tax | $17,475.00 |
| Toronto municipal land transfer tax | $17,475.00 |
| Combined land transfer tax, before rebates | $34,950.00 |
| Ontario first-time buyer refund (up to) | -$4,000.00 |
| Toronto first-time purchaser rebate (up to) | -$4,475.00 |
| Net land transfer tax, both rebates applied | $26,475.00 |
The Ontario land transfer tax refund covers up to $4,000 of the provincial bill, and the City of Toronto’s own first-time purchaser rebate covers up to $4,475 of the municipal bill. The two stack, because they come from two different levels of government taxing the same transaction, and more detail on how to claim the provincial side is in our first-time buyer rebate guide.
Purchases above $2,000,000 face a further provincial bracket of 2.5% on the portion over that threshold, but only where the land holds one or two single family residences. Whether that bracket applies depends on the specific property, so confirm it with your real estate lawyer before firming up an offer at that price point.
For most Toronto purchase prices under $2,000,000, the municipal tax matches the provincial tax bracket for bracket, which means the combined bill is close to exactly double what a buyer would pay anywhere else in Ontario, before either rebate is applied.
Condos in the Core, Freehold in the Inner Suburbs
Financing a downtown Toronto condominium and a freehold home in the inner suburbs are different exercises for a lender, even at an identical purchase price.
A condominium purchase brings the status certificate into the file. Under Ontario’s status certificate rules, the condo corporation must deliver it within 10 days of receiving the request and the fee, and the fee is capped at $100 including tax. If the corporation misses that deadline, a certificate is deemed issued the next day stating nothing is owed, which is the enforcement mechanism behind the deadline.
Condo fees also enter the qualifying math directly. Lenders include 50% of the monthly condo fee in a buyer’s GDS and TDS ratios, which is one reason two units at the same price can qualify very differently depending on their maintenance fee.
Freehold purchases in the inner suburbs, Etobicoke, Scarborough, North York and East York among them, skip the status certificate step entirely. Appraisal and resale comparables are usually more straightforward to source on a detached or semi-detached property than on a pre-construction or newer condo unit.
A Toronto condominium’s status certificate must arrive within 10 days of the request and fee, capped at $100 total, and half of the monthly condo fee counts against a buyer’s qualifying ratios on every condo file in the city.
Pre-Construction Condo Assignments and Interim Occupancy
Toronto’s pre-construction condo market creates two financing situations that barely come up elsewhere in Ontario: assignment sales and interim occupancy.
An assignment is a sale of the original purchase contract before the building has registered, which means the assignee is buying a contract, not yet a legal unit, and some lenders look at that file differently than a resale purchase. Interim occupancy is the period where a buyer moves in and pays occupancy fees to the builder before the building registers and the mortgage can actually fund, because there is no legal unit to register a mortgage against until then.
A standard rate hold runs about 180 days, which cannot span a multi-year pre-construction build. Toronto condo buyers in this position should expect to requalify for their mortgage near final closing, not only at the original purchase date.
The 416 and the 905
Toronto’s own housing stock splits along a clear line, a condominium-dominant core and a deeper mix of freehold housing in the inner suburbs, both of which differ again from the detached and townhouse stock that dominates the surrounding 905 municipalities.
| Area | Typical housing mix | What it tends to mean for financing |
|---|---|---|
| 416 core (downtown, midtown) | Condominium-dominant, high-rise and mid-rise | Status certificate review, reserve fund assessment, condo fees in qualifying ratios |
| 416 inner suburbs (Etobicoke, Scarborough, North York, East York) | Mix of freehold detached, semi-detached and purpose-built rental | More conventional underwriting, simpler comparables |
| 905 surrounding regions (Peel, York, Durham, Halton) | More new-build freehold and townhouse stock | Pre-construction timelines, deposit structure and occupancy closings come up more often |
Current pricing and sales activity for any of these areas is tracked by the Toronto Regional Real Estate Board (TRREB), and that is the right place to check live numbers rather than a page like this one.
Property type, more than price alone, is usually what decides which financing path a Toronto area buyer is actually on.
Toronto’s Employment Base and Why Income Type Changes the File
Toronto’s buyer pool draws from finance, technology, healthcare, the public sector, and a large self-employed and contract workforce, and that last group changes how a mortgage file gets built.
A self-employed buyer in Toronto generally needs 24 months operating the business, or 24 months of experience in the same line of work, documented with a Notice of Assessment and T1 General and a Statement of Business Activities (T2125). Sole proprietorship and partnership income can be grossed up by 15% for qualifying purposes, or assessed using an add-back approach, and the maximum loan-to-value is the same as a salaried borrower’s, up to 95% on one or two units. Self-employment on its own does not lower that ceiling.
Every Toronto buyer, salaried or self-employed, qualifies under the mortgage stress test at the greater of their contract rate plus 2%, or a 5.25% floor. Where a self-employed file ends up needing an alternative lender, any broker fee involved must be disclosed in writing before you sign, which our guide to mortgage broker cost in Ontario covers in full.
A self-employed Toronto buyer with two years of filed tax returns and the right documentation qualifies at the same maximum loan-to-value as a salaried buyer, with sole proprietorship income eligible for a 15% gross-up.
Rental and Investor Demand in Toronto’s Condo Market
Toronto’s condo market carries a meaningful investor and rental share, and that affects how a purchase gets underwritten from the start. Current rental and investor activity is best tracked through TRREB’s own data rather than estimated here.
On an owner-occupied two-unit property, a lender can add up to 100% of gross rental income to the buyer’s income for qualifying. On an owner-occupied three or four unit property, and on any non-owner-occupied property, that figure drops to up to 50% of gross rental income, or the lender can use a net rental income approach instead.
Mortgage loan insurance is not available on a non-owner-occupied single-unit property, which is the most common structure for a Toronto condo bought purely as a rental. Since default insurance cannot apply, these files cannot be high-ratio, which means they are financed conventionally rather than at the lower down payment minimums available to an owner-occupier.
Investors holding tenanted units should also know that Ontario’s rent increase guideline resets every year, exempts units first occupied for residential purposes after 15 November 2018, and requires at least 90 days’ written notice on the proper form when it does apply. The current year’s figure is always on Ontario’s own site rather than baked into a page like this one.
Mortgage loan insurance is not available on a non-owner-occupied single-unit purchase, so a Toronto condo bought purely as a rental is financed conventionally, not at an insured minimum down payment.
Pekoe.ca Is a Digital Brokerage, Not a Downtown Office
Pekoe.ca does not have a Toronto branch, and says so plainly rather than implying one. The brokerage is FSRA licensed under Ontario’s licensing framework, Licence #13321, and works with Toronto buyers, owners and investors remotely, the same way it works with clients across the rest of Ontario and Alberta.
If you are still deciding how to evaluate a broker before choosing one, that question is covered in full in our guide to choosing a mortgage broker in Ontario. This page focuses on what is specific to buying, owning and refinancing in Toronto itself.
Toronto homeowners who have fallen behind on payments should understand their rights before a lender moves to enforce. Ontario’s power of sale process sets out the timelines and the right to cure that apply.
For the full process of getting a mortgage in Ontario, start with our guide to how to get a mortgage in Ontario, or browse the complete Ask a Broker library for answers on specific topics.
Check today’s live rates at pekoe.ca/rates, updated daily. You can also get a pre-approval certificate in seconds.
Frequently Asked Questions
Does Toronto have its own land transfer tax?
Yes. Toronto is the only municipality in Ontario that charges a municipal land transfer tax, and it applies on top of the provincial land transfer tax rather than instead of it. No other Ontario municipality charges one.
How much land transfer tax would a first-time buyer pay in Toronto?
It depends on the purchase price, since both taxes are calculated bracket by bracket. On an illustrative $1,050,000 purchase, the combined tax before rebates is $34,950.00, reduced to $26,475.00 once a qualifying first-time buyer claims both rebates.
Can Toronto’s two first-time buyer rebates be claimed together?
Yes. The Ontario provincial refund of up to $4,000 and the Toronto municipal rebate of up to $4,475 come from two different levels of government and stack on the same transaction. Claiming either one after the deed is already registered triggers a separate $221.22 processing fee.
What is different about financing a condo versus a freehold home in Toronto?
A condo purchase requires a status certificate, which the corporation must deliver within 10 days of the request and fee, capped at $100, and lenders count 50% of the monthly condo fee against your qualifying ratios. A freehold purchase skips the status certificate step and is generally more straightforward on appraisal and comparables.
Does Pekoe.ca have an office in Toronto?
No. Pekoe.ca is based in Kitchener-Waterloo with an Alberta office in Canmore, and works with Toronto clients remotely as an FSRA-licensed digital brokerage. There is no Toronto storefront, and the firm does not claim to have one.
What does a self-employed buyer need to qualify for a mortgage in Toronto?
Generally 24 months of operating the business, or 24 months in the same line of work, documented with a Notice of Assessment, T1 General and Statement of Business Activities (T2125). Sole proprietorship and partnership income can be grossed up by 15% for qualifying, and the maximum loan-to-value matches a salaried borrower’s, up to 95% on one or two units.
Ready to Buy, Refinance or Renew in Toronto?
Toronto’s dual land transfer tax and condo-heavy market both reward getting the numbers right before you make an offer, not after.
Talk to Pekoe.ca about your Toronto purchase, refinance or renewal.