Canadian mortgage math, current CMHC rules, Ontario land transfer tax, rent control and after-tax returns, with a stress test on every deal.
A planning model, not a lender approval or a tax return. Free to use, no sign-up.
Your strategy changes how the deal is graded, never the underlying numbers.
Example: Aurora condo apartment, Oct 2025–Sep 2026 average sale price and lease price (HabiStat), rounded. Every other figure is an editable example, not an estimate for any property.
For a property you won’t live in. Rental purchases generally need 20% or more down.
Cash to Close$11,775 closing costs, $5,000 reserve
Monthly Costs$975/mo operating, $50/mo capital
Hold, Exit & Tax10 years, 4% appreciation, 43.41% tax rate
Reset restores the example figures and financing for the selected property type. Your property type and strategy stay as chosen. The scenario link holds deal inputs only, never contact details.
- Needs $1,338/mo from your pocket in year 1. Break-even rent is $4,079.
- Beyond the $139,775 at closing, plan on $143,953 in top-ups over 10 years.
- Projected profit before tax: $220,031. At flat prices it would be −$60,551 (−3.4% IRR), so the profit depends entirely on appreciation.
- Rent growth is capped at the 1.9% guideline because the unit is rent-controlled.
Grading for Long Hold. Strong: 8%+ pre-tax IRR with debt coverage of 0.90+. Workable: 5%+ IRR. Weak: under 5%. Changing strategy changes the grading only, never the numbers.
Debt coverage of 1.00 means NOI exactly pays the mortgage. Lenders on larger rentals typically look for 1.10 to 1.20 or more.
| Scenario | Monthly | Profit | IRR | Grade |
|---|---|---|---|---|
| As entered | −$1,338 | $220,031 | 7.9% | WORKABLE |
| Rate +1%Whole hold at 6.25% | −$1,627 | $173,762 | 6.2% | WORKABLE |
| Rent −10%$2,430/mo to start | −$1,600 | $185,775 | 6.6% | WORKABLE |
| Vacancy ×26% vacancy | −$1,419 | $209,437 | 7.5% | WORKABLE |
| Flat prices0% appreciation | −$1,338 | −$60,551 | −3.4% | WEAK |
| Combined downsideRate +1%, rent −10%, vacancy ×2 | −$1,962 | $129,971 | 4.6% | WEAK |
Monthly is year-1 cash flow; profit and IRR are pre-tax. Each row changes only what it names. Everything else stays as entered.
Cash flows are modelled yearly: cash spent at purchase, each year's cash flow at year-end, and sale proceeds at the end of the final year.
Year-by-year projection
| Year | Rent / mo | NOI | Capital repl. | Mortgage | Cash flow | Top-ups to date | Mortgage balance | Property value |
|---|---|---|---|---|---|---|---|---|
| 1 | $2,700 | $19,728 | −$600 | −$35,183 | −$16,055 | $16,055 | $482,136 | $639,600 |
| 2 | $2,751 | $20,091 | −$612 | −$35,183 | −$15,704 | $31,759 | $471,748 | $665,184 |
| 3 | $2,804 | $20,461 | −$624 | −$35,183 | −$15,346 | $47,105 | $460,807 | $691,791 |
| 4 | $2,857 | $20,838 | −$637 | −$35,183 | −$14,982 | $62,087 | $449,284 | $719,463 |
| 5 | $2,911 | $21,221 | −$649 | −$35,183 | −$14,611 | $76,699 | $437,149 | $748,242 |
| 6 | $2,966 | $21,612 | −$662 | −$35,183 | −$14,234 | $90,933 | $424,368 | $778,171 |
| 7 | $3,023 | $22,009 | −$676 | −$35,183 | −$13,849 | $104,782 | $410,907 | $809,298 |
| 8 | $3,080 | $22,414 | −$689 | −$35,183 | −$13,458 | $118,240 | $396,730 | $841,670 |
| 9 | $3,139 | $22,827 | −$703 | −$35,183 | −$13,059 | $131,299 | $381,799 | $875,337 |
| 10 | $3,198 | $23,247 | −$717 | −$35,183 | −$12,653 | $143,953 | $366,074 | $910,350 |
Pre-tax, end of each year. Mortgage payments stop once the loan is paid off.
Have Matthew review this property
A calculator is only as good as its inputs. Before you write an offer, I'll check the ones that matter most against the actual property:
- Rent comps from recent leases in that building or neighbourhood
- Real taxes, condo fees and the reserve fund position, not guesses
- Financing that fits: rental offset, amortization and renewal risk
- Exit plan: who buys it from you, and at what price
I run the numbers the same way I run them on my own investments. This is a review request, not a booked appointment; I'll reply to set a time.
How the numbers are calculated
No black box. Here is exactly what the analyzer does, and what it leaves out.
Canadian mortgage math
Fixed-rate Canadian mortgages compound semi-annually, so the monthly rate is (1 + rate ÷ 2)1/6 − 1, used for both payments and balances. Variable-rate and other products can compound differently. The rate is held constant for the whole hold.
CMHC insurance
Under 20% down applies only to owner-occupied house hacks under $1.5M. Minimum down is 5% on the first $500K and 10% above that for 1–2 units, and 10% for 3–4 units. The premium is added to the loan. A 0.20% surcharge applies to 30-year insured amortization. Ontario's 8% sales tax on the premium is paid in cash at closing. Eligibility is never guaranteed; lenders and insurers decide.
Land transfer tax
Ontario LTT uses the provincial brackets. Toronto's municipal LTT is added only when you tick the box. First-time buyer rebates are not applied, because they require owner occupancy and individual eligibility the tool can't verify.
Rent control
Units first occupied on or before November 15, 2018 are rent-controlled, so rent growth is capped at the provincial guideline for a sitting tenant. Units first occupied after that date are exempt, so your market growth rate applies.
IRR, not "average ROI"
IRR accounts for when money moves. Reserves are excluded because they remain yours. If the cash flows never return what you put in, or no single rate solves them, the tool says so instead of showing a number.
Income & capital gains tax
Taxable rental income is rent minus operating expenses minus mortgage interest. Principal isn't deductible. Capital replacements aren't deducted yearly; they're added to your cost base, along with land transfer tax, closing costs and renovations. For a house hack, shared costs and the gain are prorated to the rented share, and your own unit is assumed to qualify for the principal residence exemption. 50% of the gain is taxed at your marginal rate.
Investor questions
What's the difference between cap rate, cash-on-cash and IRR?
Cap rate is net operating income divided by price. It ignores financing, so it compares properties on equal footing. Cash-on-cash is year-one cash flow divided by the cash you spent to buy, so it measures what your money earns this year. IRR is the annual return across the whole hold, covering cash flow, mortgage paydown, appreciation and costs, weighted by timing. Use cap rate to compare buildings, cash-on-cash to judge monthly comfort, and IRR to judge the investment.
Can a property with negative cash flow still be a good investment?
Sometimes. If appreciation and mortgage paydown outrun the monthly top-ups, the return can still be healthy. The risk is that you fund the shortfall every month, through renewals and vacancies, for the whole hold. Check the top-ups line, the flat-prices stress row and the year-by-year projection before deciding you can carry it.
How does Ontario rent control affect my returns?
For units first occupied on or before November 15, 2018, annual increases for a sitting tenant are capped by the provincial guideline: 2.1% for 2026 and 1.9% for 2027. Units first occupied after that date are exempt from the guideline. Between tenants, rent can generally be reset to market, so turnover matters.
How much do I need down on an investment property in Ontario?
For a property you won't live in, plan on at least 20% down. If you live in one of the units (a house hack), CMHC-insured financing can allow less: 5% on the first $500,000 and 10% on the rest for 1–2 units, or 10% for 3–4 units, with a purchase price under $1.5 million. Lender and insurer approval still applies.
Why is my mortgage payment different from a US calculator?
Canadian fixed-rate mortgages compound semi-annually. Most online calculators compound monthly, which overstates the payment slightly. This analyzer uses semi-annual compounding.
Are rental losses tax-deductible in Canada?
Generally, yes. A rental loss (rent minus deductible expenses, including mortgage interest but not principal) can usually offset other income, and the analyzer shows that as a tax saving at your marginal rate. Rules on CCA and expense claims vary, so confirm with your accountant.
Do investors pay land transfer tax in Ontario?
Yes. Ontario land transfer tax applies to every purchase, and first-time buyer rebates don't apply to investment properties. Buying in the City of Toronto adds a municipal land transfer tax. See the closing cost calculator for a line-by-line breakdown.
Keep researching
Tools, market data and guides for investing across York Region and the GTA.
Disclaimer: This calculator provides estimates for planning purposes only, based entirely on the inputs entered. Example figures are editable illustrations, not verified estimates for any property. Actual returns depend on market conditions, property performance, financing approval and terms, tenant quality, tax rules and individual circumstances. CMHC rules, land transfer tax, rent increase guidelines and tax treatment are simplified and subject to change (rules checked October 17, 2026). The assessment uses the thresholds shown and is not investment, tax, legal or mortgage advice. Consult a licensed mortgage professional, accountant and lawyer before making investment decisions.
Real Estate Websites by Web4Realty
https://web4realty.com/