The lines in a monthly cost
A home costs you four things each month, and the mortgage is only the first one. Some townhomes add a fifth.
| Line | What it is | Who gives you the number |
|---|---|---|
| Mortgage | Your loan payment. The price, your down payment, the rate and the amortization set it. | Your lender. |
| Property tax | A yearly city tax based on the assessed value of your home. Most lenders can collect it with your mortgage payment. | Your lender's estimate, or the City of Ottawa's property tax page. |
| Home insurance | Covers repair or rebuilding after damage. Your lender requires it before possession. | An insurance broker, with a quote for the exact address. |
| Utilities | Heat, hydro and water. A new home is usually efficient, but the lines are not zero. | The utility providers, or ask neighbours in the community. |
| Common-element or condo fee | On some townhome products only. It depends on the legal tenure of the home, which is not always obvious from walking through it. | Ask us whether the home is freehold or condominium, and the current fee if one applies. |
Two homes at the same price can have different monthly costs because of the last four lines. Compare the whole picture, not the price alone.
Deposits, your down payment and what you pay at closing
Three amounts get mixed up, and sorting them out early saves a lot of worry.
- Deposits are what you pay us at signing and at agreed points during the build. They are part of your down payment, not an extra cost. The schedule is in your agreement. Ontario protects new-home deposits by law. [to confirm: deposit structure and schedule by product]
- Your down payment is the total you put in yourself. Your mortgage covers the rest. The balance is due at closing.
- Closing costs are extra, and in Ontario they are larger than in some provinces because of the land transfer tax. A refund exists for first-time buyers, and your lawyer claims it. Legal fees, the warranty enrolment adjustment, title insurance and prorated adjustments make up the rest. Your lawyer gives you the exact total before closing day.
Ask us how HST is handled in a price. New homes carry it, and it is usually quoted inside the price with any rebate assigned to the builder. Your lawyer checks how it appears on your closing statement. [to confirm: pricing convention and rebate handling at closing]
Two things that work differently on a new home
- Your first property tax bill may not be your full one. A newly built home is assessed after the fact, so your first bill can be small and a larger supplementary bill can follow, sometimes reaching back. Budget on a full-year figure, and ask your lender or the city how this applies to you.
- Rebates exist for a new home, and they change. HST rebates, the land transfer tax refund and federal savings programs have rules, limits and dates that move. Ask your lender and an accountant which apply to you before you set a closing date, because timing can matter. We explain the current ones in dated articles on Cardel News.
When to talk to a lender
Before you tour, not after. A pre-approval is a lender's written view of what you can borrow. It turns a wish list into a budget, and it tells you which homes to look at.
When you talk to a lender, ask for an estimate that includes every line above, not just the mortgage. Ask how long your rate is held, and what happens if a build runs past it. Ask what first-time buyer rules apply to your mortgage right now, because they change.
If an offer or incentive is attached to a home, ask your lender to show you the payment with it and without it. [to confirm: whether Cardel Ontario offers financing or first-time buyer incentives, and how the region describes them]
The full list of questions to ask a lender is on the questions page.
Questions first-time buyers ask
How much do I need for a down payment?
Canada sets a minimum that depends on the price, and your lender will tell you what it is for the home you are considering. Putting down less than a set share means mortgage insurance, and in Ontario part of that cost is paid at closing. Your lender will explain. The down payment is separate from closing costs, so plan for both.
Is the deposit on top of the down payment?
No. Deposits paid during the build are applied to your down payment at closing. What sits on top is the closing costs, which your lawyer totals for you.
Can you tell me what my monthly payment would be?
We can give you the price, how it handles HST, and whether a common-element fee applies. Your lender turns those into a monthly payment, because the rate and the amortization are theirs to set. Ask them for an estimate that includes every line on this page.
Is there a payment calculator?
Not on this page, on purpose. A reliable estimate needs inputs that only a lender can confirm, such as your rate, your amortization and your insurance quote. A lender's written estimate is the version to trust.
Get real numbers for a real home
Pick a community and a home type, then ask a lender for an estimate that includes every line above.
Internal review notes — what must be confirmed before this page publishes
- [to confirm] Deposit structure and schedule by product. No amount or percentage is stated.
- [to confirm] Pricing convention and rebate handling at closing.
- [to confirm] Whether Cardel Ontario offers financing or first-time buyer incentives, and how the region describes them.
- Legal review: this page replaces the former monthly-cost and deposit calculators and the HST-rebate, savings-program and deposit pages. It names cost categories only. Land transfer tax, the first-time refund, the warranty enrolment adjustment and the supplementary assessment are named as things that exist, with no amounts, bands, rates or look-back periods.
- When the NEWS articles on the HST rebate and the savings programs are confirmed, link them from the 'two things' section.