4 Awesome Calculators for Canadian Real Estate Investors

As of January 2022, the Canadian government requires a 20 per cent down payment for a property that will be rented out. The Up Front Cash Available calculator by Calculator.net can help you determine how much home you can afford based on the cash you’ve stashed away. In the same link, the Home Price calculator will crunch the numbers to determine how much you’ll need for a down payment based on the price of the home. These calculators will also give you the monthly payment based on your mortgage interest rate.

Once you’ve selected a rental property that fits your budget, you’ll want to find out whether the property will cash flow for you. This Rental Property Calculator by Wowa requires you to input the purchase price of the property, your down payment amount, mortgage rate, expected monthly rents and expenses such as property taxes, insurance expenses and maintenance expenses. After you plug in that information, this handy tool will give you the return on your investment as well as your gross and net annual rental income for the property.

Land transfer tax is the amount you pay when you purchase a property. This fee forms the largest portion of your closing costs (more on those below). This tax is applicable in all provinces and territories except for Alberta and Saskatchewan and is calculated using the purchase price of the property. To find out the land tax amount for the home you’re considering, use this calculator by Rate Hub.

When shopping for a house, some investors make the mistake of forgetting to include closing costs in the equation. These include the legal and administrative fees you’ll need to pay to a notary and the mortgage lender before closing the sale of your new property. Closing costs must be paid with cash you come up with—they can’t borrowed along with the mortgage. In Canada, these fees range between 1.5% and 4% of the house purchase price. This handy calculator can help you determine what that amount will be based on the purchase price of the home you are thinking of buying.

Prefer to do these calculations manually? You can discover the actual formulas here.

Remember, the key to making smart, cash-flowing real estate investments starts with doing the right research and due diligence at the outset. Uphaus works closely with investors to provide advice on the best properties to monetize rentals with high ROI. Contact us to discover how we can support you in your property search.