The Listing Price Is Not the Money You Need: A GTA Cash-to-Close Worksheet
By Naveen Vadlamudi, Real Estate Broker, Royal Canadian Realty, Brokerage Ask a first-time buyer how much money they need and most will give you one number: the down payment. Then closing day arrives with a second bill they never budgeted for. The listing price is not the money you need. Here is the full worksheet, in the order the costs actually appear. Line 1: The down payment — and the $1.5 million cliff The minimum down payment in Canada is 5% on the first $500,000 of the price and 10% on the portion between $500,000 and $1,499,999 (Financial Consumer Agency of Canada). At $1,500,000 and above, insured mortgages end and the minimum jumps to 20%. Watch what that does near the line. At $1,490,000, the minimum down payment is $124,000 — $25,000 on the first $500,000 plus $99,000 on the next $990,000. At $1,500,000, it is $300,000. A $10,000 difference in price creates a $176,000 difference in cash required at the door. If your budget sits anywhere near that line, this single rule ...
