First-Year Costs of Owning a Home in the GTA (2027)

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

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Row of newer freehold townhouses in a Brampton subdivision on an autumn morning (illustrative)

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Two worked 2027 budgets for a Toronto condo and a Brampton townhouse: closing cash, mortgage, tax, utilities, insurance and repairs.

Short answer

In 2027, a first-time buyer of a $600,000 Toronto condo should expect about $52,000 of known first-year costs and $45,000 of closing cash; a $755,000 Brampton townhouse runs about $57,000 and $60,000. Add utilities, insurance and a repair fund of about 5% of income.

This guide is for first-time buyers in Toronto and the wider GTA who want a realistic number for the first twelve months of owning, not just the down payment. You will get two worked 2027 budgets built on typical 2026 sale prices and current rates, the closing-day cash, and the costs that tend to arrive after you move in.

What does the first year of owning a home in the GTA cost in 2027?

For a typical first purchase, my arithmetic puts the known first-year costs at roughly $52,000 for a $600,000 downtown Toronto condo and $57,000 for a $755,000 Brampton freehold townhouse, before utilities, insurance and repairs. Those are the mortgage payments, property tax and (for the condo) the condo fee. On top of that comes the cash you need on closing day: about $45,000 and $60,000 for the same two homes.

The two prices are not random. They are the median sold prices from January to October 2026 for a condo apartment in Toronto’s downtown C01 district and a freehold townhouse in Brampton, from TRREB MLS data via REALM. Medians are city or district figures, not neighbourhood prices.

Year one, known costs	Toronto C01 condo, $600,000	Brampton freehold town, $755,000
Down payment (minimum)	$35,000	$50,500
Mortgage incl. CMHC premium	$587,600	$732,680
Monthly payment at 4.84%, 25 years	$3,364	$4,195
Mortgage payments, year one	$40,370	$50,338
Property tax (illustrative assessment)	$3,837 on $500,000	$6,894 on $550,000
Condo fee (assumed $650 a month)	$7,800	None
Known first-year total	$52,007	$57,232
Per month	about $4,334	about $4,769

Source: prices are TRREB MLS medians via REALM, January–October 2026. Rate is RBC’s advertised 5-year fixed high-ratio special on 10 November 2026. Tax uses 2026 Toronto and Brampton residential rates. Assessments and the condo fee are assumptions. All totals are my arithmetic, rounded.

These numbers leave out utilities, home insurance, maintenance and moving, which I cover below. They also assume a first-time buyer with the minimum down payment and a five-year fixed rate.

How much cash do you need on closing day?

The closing cheque is where most first-year budgets start to slip. CMHC’s homebuying guide suggests budgeting 1.5% to 4% of the purchase price for closing costs, on top of your down payment. Here are the parts I can calculate exactly:

Closing-day cash	Toronto condo, $600,000	Brampton town, $755,000
Down payment	$35,000	$50,500
Ontario land transfer tax after first-time refund (up to $4,000)	$4,475	$7,575
Toronto municipal land transfer tax after first-time rebate (up to $4,475)	$4,000	None
8% Ontario sales tax on the CMHC premium (cash, not added to the loan)	$1,808	$2,254
Subtotal	$45,283	$60,329

Source: Ontario Ministry of Finance land transfer tax rates; City of Toronto MLTT rates; CMHC premium of 4.00% for loans above 90% loan-to-value. My arithmetic. Legal fees, title insurance and adjustments are extra.

Legal fees, title insurance, the inspection and the property tax or condo fee adjustments all come on top. Only Toronto charges the municipal land transfer tax; Brampton, Mississauga, Vaughan and the rest of the GTA do not. For every line item, see my full list of buyer closing costs in Ontario for 2027.

How much of your first-year mortgage payment is interest?

More than most buyers expect. On the Toronto condo, about $27,885 of the $40,370 paid in year one is interest and only about $12,485 reduces the loan. On the Brampton townhouse, it is about $34,770 of interest and $15,567 of principal. That is roughly two-thirds interest in both cases, by my arithmetic at 4.84% over 25 years.

The rate also matters more in 2027 than it did a year ago. The Bank of Canada raised its policy rate to 2.50% on 28 October 2026, and big-bank prime is now 4.70%. If your rate were one point higher, at 5.84%, the condo payment would rise to about $3,704 a month and the townhouse to about $4,618. That is $340 to $420 more every month. If you choose a variable rate, build that cushion into your budget from day one.

The premium itself is worth understanding. With under 20% down, mortgage default insurance is required, and at these loan-to-value ratios CMHC charges 4.00% of the loan. It is added to the mortgage, so you pay interest on it for the full amortization. My guide to CMHC insurance costs in Ontario explains the tiers.

Free tool — what can you actually afford?

What property tax will I pay in my first year?

Your tax is your MPAC assessed value multiplied by your city’s residential rate. It is not based on the price you paid. The 2026 residential rates were:

Toronto: 0.767311%, or about $767 per $100,000 of assessment. The City’s own example: an average home assessed at $692,140 pays about $5,311.
Brampton: 1.253381%, or about $1,253 per $100,000 of assessment, including the Peel Region and education portions.

The 2027 rates are not set yet. Each council sets them in its 2027 budget, so plan for a small increase. Ask for the current assessment and last tax bill before you make an offer, because the assessment can be far from the sale price. On closing day you will also reimburse the seller for any tax they prepaid for your part of the year.

Two 2027 dates for Toronto owners: the City requires every homeowner to declare their property’s 2026 occupancy status for the Vacant Home Tax by 30 April 2027. If you do not declare, the City treats the home as vacant, and the tax is 3% of the assessed value. Declaring takes a few minutes with your tax bill in hand. More on Toronto bills in my 2027 Toronto property tax guide.

What do utilities cost when you own a home in Ontario?

No authoritative average exists for a GTA household, so I will not quote one. What I can give you are the prices that drive your bill:

Ontario electricity price plan (from 1 November 2026)	Price
Time-of-Use off-peak (weekday evenings, nights, weekends)	9.1¢ per kWh
Time-of-Use mid-peak	14.6¢ per kWh
Time-of-Use on-peak	18.9¢ per kWh
Ultra-Low Overnight, 11 p.m. to 7 a.m.	3.7¢ per kWh
Ultra-Low Overnight on-peak, weekdays 4 p.m. to 9 p.m.	37.7¢ per kWh

Source: Ontario Energy Board, electricity prices set for 1 November 2026. Delivery and regulatory charges are billed separately.

The Ontario Energy Board sets these prices once a year on 1 November, so they hold through most of 2027. Your bill also includes delivery charges from your local utility. Natural gas, water and wastewater are billed separately by your gas supplier and your city or region. For a freehold, ask the seller for twelve months of bills. For a condo, the status certificate shows which utilities the fee covers and whether units are sub-metered. If the home has an old furnace, my guide to heat pumps and rebates in Toronto shows what an upgrade costs.

How much should I budget for home insurance?

There is no official average premium for Toronto or Ontario, and quotes vary widely by building age, location, water coverage and claims history. Your lender will want proof of coverage before it advances the mortgage, so get two or three quotes on the actual address during your conditional period, not after you firm up. For a condo, your unit policy has to fill the gaps left by the corporation’s policy and deductible, which you will find in the status certificate. My guide to home insurance costs in Toronto and Ontario pulls together the published estimates.

How much should a new owner set aside for maintenance and repairs?

CMHC’s guide puts maintenance and repairs at the top of the list of ongoing costs, along with things like security monitoring, snow removal and gardening. It suggests setting aside an emergency fund of about 5% of your income every year for major repairs. On a household income of $150,000, that is $7,500 a year, or $625 a month.

That suggestion applies most to freehold owners, because the roof, furnace, windows and driveway are yours alone. Condo owners share those costs through the fee and reserve fund, but a thin reserve can lead to a special assessment, and fees can rise each year. Read the reserve fund study summary and the budget in the status certificate before you remove conditions.

Watch out

Do not spend your whole cushion on furniture in the first month. The first property tax instalment, a condo fee increase and a broken appliance can all land in the same quarter. If you are on a variable rate, another rate hike lands on top. Keep at least three months of your full monthly housing cost in cash until you have lived through a full year of bills.

What hidden costs catch new GTA homeowners in 2027?

Sales tax on the CMHC premium. It is 8% and must be paid in cash at closing: $1,808 and $2,254 in the examples above.
The Toronto Vacant Home Tax declaration. Miss the 30 April 2027 deadline and the home can be treated as vacant.
Catch-up tax bills on new builds. A newly built home can bring a supplementary (catch-up) tax bill after closing, once MPAC adds the finished house to the roll. Ask your lawyer how it will be handled.
Payment changes. Variable payments move with prime, and fixed borrowers face the market rate at renewal.
Condo fee increases and special assessments. These follow the corporation’s budget and reserve fund, not your plans.

I go through five of these in more detail in the costs new Ontario homeowners forget.

My take

When I sit down with a first-time buyer, I add up the whole first year before we book a single showing: closing cash, twelve months of payments, tax, fees, insurance quotes and a repair fund. Most people find the monthly payment is fine but the first ninety days are tight. If the full-year number only works with everything going right, look at a slightly lower price or a different home type. It is my view that a home you can carry comfortably at today’s rate plus one point is the right target for 2027.

What to do next

Get pre-approved and ask the lender for the exact rate, premium and amortization they will use.
Build your own year-one table: payments, tax on the real assessment, condo fee, insurance quotes and 5% of income for repairs.
Add the closing-day cash, including land transfer tax and the 8% tax on any CMHC premium.
Ask the seller or the status certificate for twelve months of utility costs and the reserve fund position.
Put 30 April 2027 in your calendar if you own in Toronto, and keep three months of costs in cash.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

Book a free call Call 833-330-1925

Frequently asked questions

How much does the first year of owning a home cost in Toronto?

For a $600,000 Toronto condo bought with 5% down in 2027, known first-year costs come to about $52,000: roughly $40,370 in mortgage payments at 4.84%, $3,837 of property tax on an illustrative $500,000 assessment and $7,800 of condo fees at an assumed $650 a month. Utilities, insurance and repairs are extra. That is my arithmetic, not a quote.

What are the hidden costs of owning a home in Ontario?

The ones that surprise Ontario buyers most are the 8% sales tax on the CMHC premium paid in cash at closing, land transfer tax, property tax adjustments, condo fee increases and special assessments, home insurance, utilities that used to be in the rent, and repairs. Toronto owners must also declare for the Vacant Home Tax every year, by 30 April in 2027.

How much cash do I need to close on a $600,000 condo in Toronto?

A first-time buyer with 5% down needs about $45,283 for the parts that can be calculated exactly in 2027: a $35,000 down payment, $4,475 of Ontario land transfer tax after the refund, $4,000 of Toronto land transfer tax after the rebate, and $1,808 of sales tax on the CMHC premium. Legal fees, title insurance and adjustments come on top.

How much should I save for home maintenance each year?

CMHC suggests setting aside an emergency fund of about 5% of your income every year for major repairs. On a $150,000 household income, that is about $7,500 a year in 2027. Freehold owners need this most, since the roof, furnace and windows are theirs alone; condo owners share those costs through fees and the reserve fund.

How much property tax will I pay on a house in Brampton?

Brampton’s 2026 residential rate is 1.253381%, about $1,253 per $100,000 of MPAC assessment, including the regional and education portions. A home assessed at $550,000 pays about $6,894 a year. The 2027 rate will be set in Brampton’s 2027 budget, and your bill depends on the assessment, not the price you paid.

What are Ontario electricity rates in 2027?

The Ontario Energy Board set Time-of-Use prices on 1 November 2026 at 9.1 cents per kWh off-peak, 14.6 cents mid-peak and 18.9 cents on-peak. Ultra-Low Overnight customers pay 3.7 cents from 11 p.m. to 7 a.m. The OEB resets prices each 1 November, so these apply through most of 2027. Delivery charges are extra.

How much of my first mortgage payment goes to interest?

About two-thirds in year one. On a $587,600 mortgage at 4.84% over 25 years, roughly $27,885 of the $40,370 paid in the first year is interest and about $12,485 reduces the balance, by my arithmetic. The share going to principal grows each year as the balance falls.

Do I have to pay tax on CMHC mortgage insurance in Ontario?

Yes. Ontario charges 8% sales tax on the mortgage default insurance premium, and it must be paid in cash on closing rather than added to the loan. On a $565,000 loan with a 4.00% premium of $22,600, the tax is $1,808. Your lawyer collects it with the other closing funds.

Does Brampton have a municipal land transfer tax?

No. Only the City of Toronto charges a municipal land transfer tax in the GTA. A buyer in Brampton pays Ontario land transfer tax only, which is $11,575 on a $755,000 home, or $7,575 for a first-time buyer after the refund of up to $4,000, as of 2026 rates.

Sources

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