Housing Affordability & Tax in Canada — The True Cost of Homeownership by Province
How property tax, land transfer tax, GST/HST on new builds, and mortgage qualification rules interact to determine the real cost of buying and owning a home in each Canadian province. Analysis covers 2026 mill rates, LTT schedules, and CMHC rules.
Monthly Ownership Cost by Province (median-priced home, 10% down, 4.5% rate)
| Province | Median Price | Mortgage P&I | Property Tax | CMHC Premium | Total/mo | Upfront (down+LTT) |
|---|---|---|---|---|---|---|
| ON | $835,000 | $4,159 | $487 | $129 | $4,775 | $98,175 |
| BC | $925,000 | $4,608 | $385 | $143 | $5,136 | $109,500 |
| AB | $480,000 | $2,391 | $280 | $74 | $2,745 | $48,145 |
| QC | $455,000 | $2,266 | $341 | $70 | $2,678 | $49,800 |
| MB | $370,000 | $1,843 | $370 | $57 | $2,270 | $42,725 |
| SK | $310,000 | $1,544 | $258 | $48 | $1,850 | $31,735 |
| NS | $415,000 | $2,067 | $415 | $64 | $2,546 | $47,725 |
| NB | $300,000 | $1,494 | $350 | $46 | $1,891 | $33,000 |
| NL | $290,000 | $1,445 | $242 | $45 | $1,731 | $31,050 |
| PE | $380,000 | $1,893 | $412 | $59 | $2,363 | $41,800 |
Mortgage uses Canadian semi-annual compounding (Bank Act). CMHC premium at 3.10% (10% down). Property tax rates are weighted-average mill rates for each province's largest city. LTT includes provincial portion only (no municipal surcharges like Toronto MLTT). GST/HST on new builds is not included in the monthly — it is an upfront cost.
Upfront Tax Burden: Land Transfer Tax + GST/HST on New Build (median-priced home)
| Province | LTT | GST/HST on New | Total Upfront Tax |
|---|---|---|---|
| ON — Ontario | $14,675 | $108,550 | $123,225 |
| BC — British Columbia | $17,000 | $46,250 | $63,250 |
| AB — Alberta | $145 | $24,000 | $24,145 |
| QC — Quebec | $4,300 | $68,068 | $72,368 |
| MB — Manitoba | $5,725 | $18,500 | $24,225 |
| SK — Saskatchewan | $735 | $15,500 | $16,235 |
| NS — Nova Scotia | $6,225 | $62,250 | $68,475 |
| NB — New Brunswick | $3,000 | $45,000 | $48,000 |
| NL — Newfoundland & Labrador | $2,050 | $43,500 | $45,550 |
| PE — Prince Edward Island | $3,800 | $57,000 | $60,800 |
GST/HST only applies to new construction (not resale). Ontario HST = 13%, NS HST = 15%, BC GST = 5% (no PST on homes). Alberta = 5% GST only. Many provinces have new housing rebates that partially refund the federal portion of GST/HST — these are not reflected here.
Key findings
- Ontario has the highest housing tax at every stage. LTT bracket structure plus 13% HST on new builds means an Ontario buyer pays ~$123K in upfront taxes on a median-priced new build. BC is close behind at $63K but has a lower HST rate (5% vs 13%).
- Alberta is the cheapest province to close. No provincial LTT (just a nominal ~$145 registration fee), 5% GST only, and mid-range property taxes. The total upfront cost is roughly $48K with 10% down on a median home — vs $97K in Ontario.
- Property tax rates vary 3× across provinces. New Brunswick and PEI have the highest mill rates (~1.3–1.4%) while BC has the lowest (~0.5%). However, BC's high median price offsets the low rate — a Vancouver homeowner pays roughly the same annual property tax as a Halifax homeowner despite the lower mill rate.
- CMHC premium adds $80–$250/month. With less than 20% down, the CMHC premium (3.10% at 10% down) adds meaningful cost. In Ontario, the premium alone adds about $180/month to a median-priced home's carrying cost.
Try the relevant calculators
- Mortgage Calculator — Canadian semi-annual compounding with P&I amortization
- Property Transfer Tax Calculator — LTT/PTT by province with FHB rebates
- Home Affordability Calculator — GDS/TDS ratios with stress test
- Rent vs Buy Calculator — full cost comparison with tax implications
- GST/HST Calculator — sales tax by province
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