Every cost of holding a house in Ontario (2026)
Keeping a home you could sell has two kinds of cost: the bills you pay every month, and the money you give up by leaving your equity in the house. Here's the full list the calculator uses.
Mortgage interest
The part of each payment that goes to the bank. The rest pays down your loan — that's savings, not a cost.
Property tax
Set by your city each year. In 2026 the residential rate is about 0.77% of assessed value in Toronto, 0.92% in Newmarket and 1.47% in Barrie.
Home insurance
Regular coverage if you live there. Extra for a vacancy permit or vacant-home policy if it sits empty more than 30 days.
Repairs and upkeep
Roofs, furnaces, appliances, paint. A common starting guess is 1% of the home's value a year.
Utilities
Heat, hydro and water. Even an empty home needs heat in winter so pipes don't freeze.
Condo fees
Monthly, plus any special assessment the building charges.
Lawn, snow and checks
Someone has to clear the snow and look in on an empty home.
Toronto Vacant Home Tax
3% of assessed value for a Toronto home empty 6+ months in the year.
Tax on rental profit
If you rent it out, profit after expenses is added to your income.
Money stuck in the house
Cash you could have after selling, earning nothing for you while it stays in the home.
Selling costs later
Commission plus 13% HST, lawyer fees, a mortgage penalty if you break your term early, and capital gains tax if it's no longer your main home.
Leaving it empty in Toronto: the 3% Vacant Home Tax
As of 2026, the City of Toronto charges a Vacant Home Tax of 3% of a home's Current Value Assessment if it sat empty for 6 months or more in the year. Every Toronto owner has to file a declaration by April 30 — even if they live in the home. Miss it, and the city treats the home as vacant and sends the bill.
On a home assessed at $800,000, that's $24,000 a year. The calculator works out your assessed value from your tax bill and adds this cost automatically when you pick Toronto and “It sits empty.” The federal 1% Underused Housing Tax no longer applies for 2025 and later years.
The 30-day insurance rule for empty homes
Many Canadian home insurance policies cut back or stop coverage if a home is vacant more than 30 days and the insurer hasn't been told. To stay covered you usually need a vacancy permit or a vacant-home policy, which can add $30 to $150 a month. In winter, freeze damage may not be covered if nobody checks the home for even a few days. Call your insurer before you move out.
Keeping it as a rental: rent rules, taxes, and the 45(2) election
Rent from a tenant can cover a big part of your holding costs, but it isn't free money. Rental profit is taxed as income. You'll also have months between tenants, repairs, and possibly a property manager (typically 8–10% of rent).
Ontario's rent increase guideline is 2.1% for 2026 and 1.9% for 2027. It applies to units first lived in on or before November 15, 2018 — newer units aren't capped.
On taxes: when your home becomes a rental, the growth up to that day stays tax-free under the principal residence exemption. Growth after that can be taxed, with half of the gain added to your income. The section 45(2) election can keep the home treated as your principal residence for up to 4 more years, as long as you don't claim depreciation. Homes sold within 12 months of buying fall under the flipping rule, with no exemption. Talk to an accountant before you rent out your home.
Sell and rent vs sell and buy
Selling and renting frees your equity to invest, but rent rises over time and builds no ownership. In October 2026 an unfurnished one-bedroom in the City of Toronto averaged about $1,969 a month, down 3.7% from a year earlier.
Selling and buying keeps you in the market, but you pay closing costs twice. Ontario land transfer tax on an $800,000 home is $12,475 — and $24,950 in Toronto, which adds its own municipal tax. If you're selling a home, you almost certainly won't qualify for the first-time buyer rebates. With less than 20% down you'll also pay mortgage insurance, plus 8% Ontario sales tax on the premium in cash at closing. See what it costs to buy in York Region and today's Ontario mortgage rates.
How to read your result
Each column shows two numbers. Real cost is the money that's gone for good — interest, rent, taxes, upkeep and the costs of selling or buying (it leaves out the part of your mortgage payment that pays down your own loan). Usable money is what you could actually spend at the end: home equity only counts after the cost of selling to get it out (commission, HST, lawyer, any mortgage penalty), plus your cash and investments. Whichever option costs less each month invests the difference.
Then look at the break-even price change. If it says keeping only wins when prices rise more than 3% a year, ask yourself honestly whether you expect that. For context, the GTA benchmark price was down 4.7% from a year earlier in September 2026, according to TRREB. Want a real number for your home instead of a guess? Get a free home evaluation, or run your payments on ONCalculator.ca.
Rates and rules on this page checked: September 16, 2026.