Ontario resident salaries vs projected income
Ontario residents are paid on the PARO scale. The rates below took effect on July 1, 2025. The agreement expired on June 30, 2026, and PARO says these salaries stay in effect until a new one is reached.
A lender using your PGY1 salary would approve a far smaller mortgage than one using projected income. Try both in the affordability calculator.
Land transfer tax in Ontario
| Portion of the price | Ontario rate |
|---|---|
| First $55,000 | 0.5% |
| $55,000 to $250,000 | 1.0% |
| $250,000 to $400,000 | 1.5% |
| $400,000 to $2,000,000 | 2.0% |
| Above $2,000,000 (one or two single-family homes) | 2.5% |
- First-time buyers get a refund of up to $4,000, which covers the full tax on a home up to about $368,000. You must be a Canadian citizen or permanent resident, never have owned a home anywhere, and move in within nine months.
- In Toronto you also pay the municipal land transfer tax. It uses the same rates up to $3 million, then 4.40% to 8.60% on higher tiers from April 1, 2026. First-time buyers get a rebate of up to $4,475.
- Foreign buyers pay Ontario's 25% non-resident speculation tax anywhere in the province. In Toronto a further 10% municipal tax applies. Ontario Immigrant Nominee Program nominees are exempt from the provincial tax.
See your own numbers in the Ontario closing cost calculator.
Mortgage insurance costs more in cash in Ontario
With less than 20% down, your insurance premium is added to the mortgage, but Ontario's 8% sales tax on that premium is not. On a $900,000 home with $65,000 down, that is $2,672 you need in cash on closing day, on top of land transfer tax and legal fees.
Buying a new build
First-time buyers of new homes up to $1 million can get the federal GST portion of HST back, up to $50,000, when the builder agreement was signed after March 19, 2025. Ontario has also removed its 8% portion for first-time buyers of new homes up to $1 million. Confirm the details with your builder and lawyer before you sign.
Property tax and what you can afford
Lenders count property tax in your housing costs, so the city matters. Toronto's 2026 residential rate is about 0.77% of assessed value, while urban Hamilton's is about 1.56%. In our example, a new physician on $225,000 with $100,000 down can afford a home about $80,000 more expensive in Toronto than in Hamilton at the same assessed value.
Where Ontario residents train
Ontario's medical schools and residency programs are at the University of Toronto, McMaster University in Hamilton, Queen's University in Kingston, the University of Ottawa, Western University in London and NOSM University in Northern Ontario. Many programs include rotations away from the main site, so think about where you will be for the next few years before you buy.
By Asim Ali, Mortgage Broker (BC, AB), Mortgage Agent Level 2 (ON)
Updated
