The Real Cost of a $700K, $800K or $1 Million New Home in Ontario

Updated September 31, 2026

When buyers see a new home advertised at $700,000, $800,000 or $1 million, the first question is usually:

“How much do I actually need to buy it?”

The purchase price is only the starting point.

For a new-construction or pre-construction home in Ontario, buyers also need to think about:

And in 2026, the calculation has become even more interesting because qualifying new-home buyers may benefit from new federal and Ontario HST relief.

This guide breaks down the numbers on $700,000, $800,000 and $1 million new homes in Ontario so you can better understand the real cash commitment behind the advertised price.

First: Purchase Price Is Not the Same as Cash Required

Suppose you see:

Brand-New Townhome — $799,990

That does not mean you need $799,990 in cash.

Most buyers finance a significant portion with a mortgage.

But it also does not mean that your only upfront cost is the builder’s initial $5,000 or $10,000 deposit.

A better way to think about the purchase is:

Builder Deposits

Let’s look at each component.

How Much Down Payment Do You Need in 2026?

For eligible insured mortgages on homes valued below $1.5 million, the current federal minimum down payment is:

The insured-mortgage price limit was increased to below $1.5 million as of December 15, 2024.

This means the minimum down payment isn’t simply 5% once the home costs more than $500,000.

Example 1: Buying a $700,000 New Home

Let’s start with a new home priced at:

$700,000

Minimum Down Payment

5% of the first $500,000:

$25,000

10% of the remaining $200,000:

$20,000

Minimum total:

$45,000

That’s approximately 6.43% of the purchase price.

But remember: your builder may require a deposit greater than $45,000.

What If the Builder Requires a 10% Deposit?

A 10% builder deposit on $700,000 would be:

$70,000

Suppose the schedule is:

$10,000 on signing

Balance to 5% in 30 days

2.5% in 120 days

2.5% in 240 days

Total deposited:

$70,000

In this example, you’ve already paid more than the minimum insured-mortgage down payment by the time the deposit schedule is complete.

That $70,000 becomes part of your equity in the property.

Ontario Land Transfer Tax on $700,000

Ontario Land Transfer Tax uses graduated rates of:

Approximate Ontario LTT on $700,000:

$10,475

An eligible first-time homebuyer can receive a provincial LTT refund of up to:

$4,000.

Potential LTT after maximum refund:

$6,475

What About Mortgage Insurance?

If your down payment is below 20%, mortgage default insurance will normally be required for an eligible high-ratio mortgage.

CMHC’s current standard premium for a traditional down payment producing a loan-to-value ratio between 90.01% and 95% is 4% of the insured mortgage amount. Premium rates decline as the down payment increases.

The premium can normally be added to the mortgage rather than paid entirely in cash. However, CMHC notes that mortgage-insurance premiums in Ontario are subject to provincial sales tax, and that tax cannot be added to the mortgage.

This means buyers using insured financing need to budget for more than just the basic down payment.

$700K Home — Simplified Cash Picture

Assume:

Purchase price:

$700,000

Builder deposit:

10% = $70,000

Ontario LTT:

$10,475

or approximately:

$6,475 after maximum first-time-buyer refund, if eligible.

Then add:

Your builder deposit may already exceed your minimum mortgage equity requirement, but it does not eliminate closing costs.

Example 2: Buying an $800,000 New Home

Now consider:

$800,000

Minimum Down Payment

First $500,000 × 5%:

$25,000

Remaining $300,000 × 10%:

$30,000

Minimum:

$55,000

That’s approximately 6.88% of the purchase price.

What If the Builder Requires 10%?

10% of $800,000:

$80,000

If you’ve already paid $80,000 to the builder, that amount counts toward the purchase.

Again, you’ve contributed more than the minimum $55,000 insured-mortgage down payment.

But that does not mean you need no further cash.

You still have closing expenses.

Ontario Land Transfer Tax on $800,000

Approximate provincial LTT:

$12,475

Eligible first-time-buyer maximum refund:

$4,000

Potential net LTT:

$8,475

$800K Home — Simplified Cash Picture

Purchase price:

$800,000

Builder deposit at 10%:

$80,000

Ontario LTT:

$12,475

Potential LTT after first-time-buyer refund:

$8,475

plus:

That is why telling someone:

“You only need $55,000 to buy an $800,000 home”

can be misleading.

$55,000 may be the theoretical minimum mortgage down payment for an eligible insured borrower.

It is not necessarily the total cash required to complete a new-home purchase.

Example 3: Buying a $1 Million New Home

Now consider:

$1,000,000

Under current insured-mortgage rules:

First $500,000 × 5%:

$25,000

Remaining $500,000 × 10%:

$50,000

Minimum:

$75,000

That’s:

7.5%

of the purchase price.

This is an important change from the older mortgage framework because insured financing is now potentially available on qualifying homes priced above $1 million and below $1.5 million.

What If the Builder Requires 10%?

10% deposit on $1 million:

$100,000

If the buyer pays that amount during construction, they have already contributed more than the minimum $75,000 insured-mortgage requirement.

Again, the buyer must still qualify for the mortgage and cover closing expenses.

Ontario Land Transfer Tax on $1 Million

Approximate Ontario LTT:

$16,475

Eligible first-time-buyer maximum refund:

$4,000

Potential net provincial LTT:

$12,475

The Big 2026 Difference: HST Relief

This is where the numbers for a brand-new home can look dramatically different from previous years.

Ontario’s Enhanced New Housing Rebate allows eligible individuals to recover up to:

$80,000

of the provincial portion of HST.

For a qualifying home valued at up to $1 million, the enhanced rebate can cover 100% of the 8% provincial portion, subject to the eligibility rules. For builder purchases, the qualifying APS generally needs to be entered into from April 1, 2026 through March 31, 2027.

First-Time Buyers Can Also Get Federal GST Relief

The federal First-Time Home Buyers’ GST/HST Rebate is now law.

Eligible first-time buyers can receive up to:

$50,000

representing up to 100% of the federal GST portion on qualifying new homes valued at or below $1 million.

The rebate is gradually reduced between $1 million and $1.5 million.

That means the maximum combined potential tax relief on an eligible $1-million new home can be very significant.

But buyers should not simply subtract $130,000 from every builder price they see.

Does a $1 Million New Home Really Mean a $130,000 Rebate?

Potentially—but only when the applicable eligibility requirements are satisfied.

Ontario’s enhanced provincial rebate can provide up to:

$80,000

and qualifying federal or Ontario additional relief may provide up to another:

$50,000

depending on the purchaser and program.

The federal first-time-buyer rebate alone provides eligible first-time buyers up to $50,000.

However, builder price lists may already incorporate assumed rebates.

Therefore:

Never calculate your effective purchase price by simply taking the advertised builder price and subtracting $130,000.

Your lawyer should review how HST is treated in the APS.

Why Builder Prices Can Be Confusing

Suppose a price list says:

$999,990*

Then the fine print says something like:

Price includes applicable HST rebate.

That may mean the builder has already structured the price assuming an eligible rebate is assigned or credited.

The buyer doesn’t necessarily receive another separate rebate on top of that advertised price.

This is why buyers should ask:

These five questions can prevent major misunderstandings.

What About a $700K or $800K Home and HST?

For qualifying homes valued below $1 million, the potential HST relief can also be substantial.

For illustration:

$700,000

13% of $700,000 would mathematically equal:

$91,000

$800,000

13% equals:

$104,000

$1,000,000

13% equals:

$130,000

However, those figures are useful only for understanding the maximum theoretical tax amount.

They are not automatic rebate amounts payable to every purchaser.

The actual calculation depends on the tax-inclusive/exclusive pricing structure, program eligibility and how the builder handles HST.

What About Legal Fees?

There is no fixed Ontario government rate for lawyers handling new-home closings.

Your lawyer’s bill can include:

Get a written quote from the lawyer handling your closing rather than relying on a generic internet estimate.

New-construction closings can involve substantially more builder documentation than ordinary resale purchases.

Builder Closing Adjustments Can Change the Numbers

This is another major variable.

Depending on your APS, the builder may be permitted to charge adjustments for items such as:

This is why capped development charges and capped closing costs can be valuable builder incentives.

An $800,000 property with good caps can potentially be financially safer than a $790,000 property containing broad uncapped adjustment clauses.

Your lawyer should review the contract.

So How Much Should You Actually Have Saved?

There is no single answer, but let’s build a more realistic planning framework.

$700K New Home — Planning Example

Purchase price

$700,000

Minimum insured down payment

$45,000

Example 10% builder deposit

$70,000

Ontario LTT

$10,475

First-time-buyer LTT refund if fully eligible

Up to $4,000

Then budget separately for:

Practical takeaway:

If the builder requires 10%, don’t think:

“I need $70,000.”

Think:

“I need the $70,000 deposit PLUS my closing-cost reserve.”

$800K New Home — Planning Example

Purchase price

$800,000

Minimum insured down payment

$55,000

Example 10% builder deposit

$80,000

Ontario LTT

$12,475

Maximum qualifying first-time-buyer refund

$4,000

Potential net provincial LTT:

$8,475

Then add:

Practical takeaway:

A buyer who has exactly $80,000 available shouldn’t automatically use every dollar for the builder deposit without planning for closing.

$1 Million New Home — Planning Example

Purchase price

$1,000,000

Minimum insured down payment

$75,000

Example builder deposit at 10%

$100,000

Ontario LTT

$16,475

Eligible first-time-buyer refund

Up to $4,000

Potential net:

$12,475

Then add closing and setup costs.

At the same time, qualifying buyers should carefully investigate the new HST relief available on eligible new homes because the potential impact can be much larger than the land-transfer-tax refund.

What If You Put 20% Down Instead?

You are not required to use the minimum down payment.

For example:

$700K home

20%:

$140,000

$800K home

20%:

$160,000

$1M home

20%:

$200,000

A 20% down payment generally allows the buyer to avoid high-ratio mortgage default insurance.

But more down payment isn’t automatically the best choice for every buyer.

You should also maintain enough liquidity for:

Don’t Forget the Mortgage Insurance Premium

Suppose you make only the minimum down payment.

CMHC’s current standard premium is:

The premium can generally be added to the mortgage.

This means it increases the amount you finance.

For example, a buyer may think:

Purchase price − down payment = mortgage

but with insured financing, the mortgage-insurance premium can increase the financed balance.

This should be included when calculating your long-term cost.

New-Build Buyers Can Potentially Use a 30-Year Insured Amortization

Another important affordability change is that eligible purchasers of qualifying new builds may access insured mortgages with amortizations of up to:

30 years

CMHC’s Home Start program currently provides a maximum 30-year amortization for qualifying borrowers, and federal rules expanded 30-year insured mortgages to all qualifying purchasers of new builds.

A longer amortization generally lowers the monthly payment.

But it also means interest is paid over a longer period.

So:

Lower monthly payment does not mean lower total cost.

Toronto Buyers Need to Budget More

The examples above use Ontario Land Transfer Tax.

Properties within the City of Toronto can also be subject to the Toronto Municipal Land Transfer Tax.

This can significantly increase the cash required to close.

For example, on many properties below $2 million, the municipal tax structure broadly mirrors Ontario’s graduated structure.

First-time Toronto buyers may qualify for municipal relief in addition to the provincial refund, subject to eligibility.

Therefore, a $1-million home in Toronto and a $1-million home in another Ontario municipality can have meaningfully different closing costs.

Don’t Forget Property Taxes and Monthly Ownership Costs

Buying the home is only the beginning.

Once you own it, you’ll also have ongoing costs such as:

A home can be affordable to buy but uncomfortable to carry.

Both calculations matter.

The Real Question Isn’t “Can I Afford the Deposit?”

Consider two buyers.

Buyer A

Has $80,000.

Finds an $800,000 home requiring exactly $80,000 in builder deposits.

Uses every dollar.

Buyer B

Has $110,000.

Buys the same property.

Pays the $80,000 deposit and keeps:

$30,000

available for closing costs and reserves.

Buyer B is in a much stronger financial position.

The ability to make the deposit does not automatically mean you’re financially ready to own the home.

How Much Emergency Savings Should You Keep?

There isn’t a universal rule appropriate for everyone.

But entering homeownership with no reserve can be risky.

Possible unexpected costs include:

Build your purchase around a financial cushion, not around using your last available dollar.

What Makes a $1M New Home Different in 2026?

The $1-million price point is particularly interesting today because several current programs converge around it.

For qualifying buyers:

That does not make a $1-million home automatically affordable.

But it does make today’s financing and tax environment very different from just a few years ago.

What Should You Compare Before Buying?

When comparing two homes, don’t look only at:

$799,990 vs $829,990

Instead compare:

Purchase price

What are you actually paying?

Builder deposit

How much and when?

Additional down payment

Will more cash be required at closing?

HST

Which rebates do you qualify for?

Builder incentives

Are they real price savings or upgrade credits?

Closing costs

Are development charges capped?

Land transfer tax

Are you a first-time buyer?

Financing

How much mortgage can you comfortably carry?

Resale competition

What does the same budget buy nearby today?

A Better Way to Compare New Homes

Use this formula:

Purchase Price

− Genuine Builder Price Discounts

− Government Rebates You Qualify For

Then separately calculate:

Mortgage Payment

You need to be comfortable with both.

Frequently Asked Questions

How much down payment do I need for a $700,000 home?

For an eligible insured mortgage, the current minimum would generally be $45,000: 5% of the first $500,000 plus 10% of the remaining $200,000.

How much down payment do I need for an $800,000 home?

The current minimum for eligible insured financing would generally be:

$55,000.

What is the minimum down payment on a $1 million home?

Under the current formula:

$75,000.

Do I need 20% down on a $1 million home?

Not necessarily anymore. Insured mortgage eligibility was expanded to qualifying homes valued below $1.5 million. Borrower and property eligibility requirements still apply.

How much is Ontario land transfer tax on an $800,000 home?

Approximately:

$12,475

before any applicable first-time-buyer refund, using Ontario’s current graduated rates.

How much can a first-time buyer save on Ontario land transfer tax?

Eligible first-time homebuyers can receive up to:

$4,000.

Can a first-time buyer get $50,000 GST relief on a new home?

Potentially. The federal FTHB GST/HST rebate provides qualifying first-time purchasers with up to $50,000 on eligible new homes valued at or below $1 million, with a phase-out between $1 million and $1.5 million.

Can Ontario buyers get up to $80,000 provincial HST relief?

Yes, qualifying buyers under Ontario’s Enhanced New Housing Rebate can receive up to $80,000 of provincial relief, subject to program requirements.

Does my builder deposit count toward my down payment?

Yes. Builder deposits form part of the money you’ve contributed toward the purchase price.

Does my builder deposit cover closing costs?

No. Closing costs generally need to be funded separately.

The Bottom Line

When you see:

New Homes From $700,000

don’t ask only:

“What’s the deposit?”

Ask:

“What will it actually cost me to buy, close and comfortably carry this home?”

For an eligible buyer, the minimum mortgage down payment might be:

$700,000 home

$45,000

$800,000 home

$55,000

$1,000,000 home

$75,000

But your builder may require a larger deposit, and you still need separate funds for land transfer tax, legal expenses, builder adjustments and other closing costs.

At the same time, the 2026 market includes potentially significant benefits for qualifying new-home buyers, including expanded insured financing, 30-year insured amortizations for new builds and major federal/Ontario HST relief.

The advertised price tells you what the home costs.

Good financial planning tells you whether you can comfortably own it.

Want to Know What You Can Buy With Your Budget?

At New Home Source, we help buyers go beyond the builder’s advertised starting price.

We can help you compare current new-home opportunities based on:

Whether your budget is $600,000, $700,000, $800,000, $1 million or more, understanding the complete purchase structure can help you make a much stronger decision.

Contact New Home Source and tell us your budget, preferred location and home type. We can help you explore current new-home opportunities that match what you’re looking for.

Disclaimer: The calculations in this article are simplified examples for general educational and real-estate marketing purposes only. They do not constitute legal, mortgage, financial, tax or investment advice. Mortgage qualification, insurance premiums, HST rebates, land transfer taxes, closing costs and builder adjustments depend on the purchaser, property, lender, municipality, Agreement of Purchase and Sale and rules applicable at the time of the transaction. Buyers should obtain independent mortgage, legal and tax advice before making a purchase decision.