Real Estate Investment Calculator: How Much Do You Need To Invest?

When you’re getting a Toronto investment property, make sure you have money saved for the down payment, closing costs, and upgrades. Check out our calculator to figure out how much you’ll need to start your real estate investment.
Please use these numbers as a best estimate only. Toronto & Ontario Land transfer Tax is based on Toronto properties with not more than two single family residences purchased on or after March 1, 2017. Capital Required is the sum of the Downpayment, Renovations, Legal Fees, Other Closing Fees, Ontario Land Transfer Tax, and Toronto Land Transfer Tax.

What Toronto Real Estate Investment Is Right For You?​

Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!

Tips for Saving for Your Investment Property in Toronto

For First-Time Home Buyers

  1. Start Your Savings Journey: Open a dedicated savings account to build your Toronto investment property down payment over time.

  2. Unlock Your RRSP Funds: Utilize the Home Buyers Plan to borrow up to $35,000 tax-free for your first home from your Registered Retirement Savings Plan (RRSP).

  3. Maximize Your FHSA Benefits: Contribute up to $8,000 annually to a tax-deductible First Home Savings Account (FHSA) for tax-free withdrawals.

  4. Secure Your Mortgage with CMHC: Qualify for a lower down payment in Toronto with a Canada Mortgage and Housing Corporation (CMHC) insured mortgage, making your entry more accessible.

  5. Claim Your Land Transfer Tax Rebate: Save through first-time home buyers’ land transfer tax rebates in Toronto and Ontario.

  6. Get Tax Credits with HBTC: Claim 15% in tax credits (up to $1,500) for home buying costs as a first-time Toronto homebuyer with the Home Buyers Tax Credit (HBTC).

  7. Join Forces in Joint Ventures: Partner with others to accelerate your entry into Toronto real estate and scale your investments faster.

For Seasoned Investors

  1. Unlock Equity Through Refinancing: Restructure your mortgage to access equity from your existing home with the guidance of a financial advisor.

  2. Diversify Your Portfolio Structure: Consider adjusting other investment holdings to enhance diversification and improve tax benefits by investing in Toronto real estate.

  3. Optimize Joint Ventures: Continue exploring partnership opportunities to pool resources, spread out your Toronto investment property risk more effectively, and grow your real estate portfolio more quickly.

  4. Revitalize Your Savings Plan: Start a dedicated savings plan specifically for your next Toronto investment property.

How to Qualify for a Mortgage for Your Toronto Investment Property

  1. Check Your Credit Score: Lenders prioritize credit history when reviewing mortgage applications. Make sure your credit score is excellent by consistently paying bills on time and addressing any outstanding issues promptly. A strong credit score boosts your credibility as a Toronto real estate borrower.

  2. Choose Toronto Investment Properties with Better Rent Yields: Opt for properties with appealing rent yields. Lenders may be more inclined to approve your mortgage if the potential rental income shows a solid return on investment. Research and select properties that align with your financial goals.

  3. Pay Off High-Rate Debt or Restructure Existing Debt: Lower your debt-to-income ratio by paying off high-rate debts. Lenders evaluate your ability to manage multiple financial commitments. Consider restructuring existing debt to improve your financial standing and demonstrate responsible financial management.

  4. Find Lenders Specializing in Toronto Investment Properties: Not all lenders are the same, and some specialize in investment properties. Seek out these lenders as they may have a better understanding of financing for investment purposes. Their expertise can streamline the application process and provide more tailored solutions.

  5. Find a Partner or Guarantor: If your financial situation requires additional support, consider finding a partner or securing a guarantor. A partner can share the financial responsibility, while a guarantor provides a guarantee for the loan, increasing your chances of approval.

  6. Look into Other Programs for Your Unique Situation: Explore specialized mortgage programs designed for specific situations, such as rental properties, high-net-worth individuals, non-residents, or small business owners. These programs may offer unique terms and conditions that better suit your circumstances.

How Do Toronto Real Estate Investors Fund Renovations?

  1. Personal Savings: Many investors use their personal savings or establish emergency funds to cover initial renovation costs. Consider refinancing equity post-renovations to free up savings for reinvestment.

  2. Mortgage Refinancing: Explore mortgage refinancing if you’ve built up equity in your Toronto investment property. This can unlock funds specifically for renovations, providing flexibility in your investment strategy.

  3. Home Equity Line of Credit: Tap into a home equity line of credit (HELOC) for flexible financing during renovations. Borrow against your home’s equity as needed, aligning seamlessly with the dynamic nature of property upgrades.

  4. Multi-Generational Tax Credit : Take advantage of the Multi-Generational Home Renovation Tax Credit for constructing Toronto secondary suites for multi-generational living.

  5. HST New Rental Rebate: Manage HST payments upfront and qualify for a portion of the rebate when using the property for Toronto rental property purposes, optimizing opportunities to recoup renovation expenses.

  6. Construction Loans: Consider construction loans cautiously, especially if other financing options are unavailable. Evaluate suitability based on specific circumstances, as they may involve time delays.

  7. Government Financing Programs: Utilize government financing programs like Toronto’s Laneway and Garden Suite Development Charges Deferral Program to defer development charges, offering financial advantages for building rental backyard homes.

  8. Joint Venture Financing: Partner with homeowners for joint venture financing, particularly for Toronto laneway or garden suite construction. This collaborative approach shares both financial burden and eventual profits, enabling shared success in Toronto’s real estate investment market.

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