Mortgage Payment Calculator for Sault Ste. Marie
This tool is designed to give you a clear picture of your financial commitment and help you plan for your dream home purchase.
It will provide you with:
- The minimum down payment amount
- How much you have to make to afford the price of the home
- The Land Transfer Tax for any home price.
- Monthly Payment
- CMHC Insurance cost
If you need further guidance, feel free to reach out!
Mortgage Calculator
Remember, You need to factor in all upfront and ongoing costs for your overall monthly payment.
Example: The Real Cost of Buying a $325,000 Home in Sault Ste. Marie
Upfront Costs (Before You Get the Keys)
- Down Payment (5%) – $16,250 (minimum required for first-time buyers)
- CMHC Mortgage Insurance – $12,045 (added to mortgage if down payment is under 20%)
- Land Transfer Tax – $3,375 (BUT… first-time buyers can receive a rebate of up to $4,000)
- Legal Fees – $1,200
- Home Inspection – $500
- Title Insurance – $500
Total Upfront Costs: Approximately $18,825 (with rebates applied).
How Much Income Do You Need?
To afford a $325,000 home, a household income of at least $66,792 per year is typically required.
Monthly Homeownership Costs
- Mortgage Payment (5-year fixed, 25-year amortization, 4.5% interest) – ~$1,730/month
- Property Taxes – ~$320/month
- Home Insurance – ~$125/month
- Utilities (Hydro, Water, Gas, Internet, etc.) – ~$300/month
- Maintenance & Repairs Fund – ~$270/month (Recommended savings fund for unexpected repairs.)
Estimated Monthly Cost: Approximately $2,745/month
If you choose not to set aside money for the maintenance fund, your estimated monthly cost would be $2,475/month.
Glossary of Terms
- CMHC Insurance: CMHC (Canada Mortgage and Housing Corporation) insurance is something you must pay if your down payment is less than 20% of the price of the home. It protects the bank or lender in case you can’t pay your mortgage.
How It Works:- If your down payment is small (between 5% and 19.99%), you’ll pay extra for this insurance.
- The cost is added to your mortgage and depends on how much your down payment is.
- The smaller your down payment, the higher the insurance cost.
- Land Transfer Tax (LTT): Land Transfer Tax is a fee you pay to the government when you buy a home. The amount is based on the price of the home. You pay this tax only once, at the time you officially buy the house (closing).
How It Works:- The more expensive the house, the higher the tax.
- First-time homebuyers can get a discount (rebate) of up to $4,000 in Ontario.
- Example in Ontario:
- 0.5% on the first $55,000 of the price.
- 1.0% on the amount between $55,001 and $250,000.
- 1.5% on the amount between $250,001 and $400,000.
- 2.0% on anything over $400,000.
- Annual Income Required: This is the least amount of money you (and your family) need to make each year to afford a house. It’s based on your monthly payments and other housing costs.
How It Works:- Lenders use a rule: You should spend no more than 32% of your income on housing (like your mortgage, property tax, and utilities).
- If your monthly payment is higher, you need to earn more money to afford the house.
- Minimum Down Payment: A down payment is the money you pay upfront when buying a house. The government has rules about how much you need to pay as a minimum.
How It Works:- For homes $500,000 or less, you need to pay at least 5% of the price.
- For homes between $500,001 and $1,499,999, you pay 5% on the first $500,000 and 10% on the rest.
- For homes $1,500,000 or more, you must pay at least 20%.
- Paying more than the minimum helps you borrow less and save money on interest and CMHC insurance.
Download Your Free Home Buyer Checklist
Download your free buyer checklist to guide you through every step—from getting ready to buy to closing day.
It’s easy to follow and helps you stay on track so you can feel confident and excited about your journey.
Get your checklist now and take the first step toward your new home!
Ready to Get Started?
If you’re ready to take the next step and buy your home in Sault Ste. Marie, book a free buyer consultation today.
We’ll talk about your what you are looking for in a home, the local market, and how to create a plan that helps you buy a home that fits your lifestyle.
If you have a question you want answered right away click the blue message icon in the bottom right corner and send me a direct message or call/text me at 705-255-4227 so I can respond as soon as possible.
