Investment Deal Analyzer
for Ontario rental properties
Canadian mortgage math, 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.
For a property you won’t live in. Rental purchases generally need 20% or more down.
Purchase & financing
$130,000 down.
Held constant for the whole hold. Renewals at a different rate are not modelled; use the “Rate +1%” stress test below.
Uninsured (20%+ down) mortgages are commonly available up to 30 years, subject to the lender. For house hacks under 20% down, 30 years adds 0.20% to the CMHC premium.
Cash to Close
Ontario land transfer tax: $9,475 (Toronto municipal LTT not included unless ticked below.)
The reserve counts toward the cash you need, but it is left out of returns because it stays yours.
Rents
Rent-controlled: rent growth for a sitting tenant is capped at the guideline entered. Ontario’s 2026 rent increase guideline is 2.1%. Units first occupied after November 15, 2018 are exempt from rent control.
Monthly Costs
Operating expenses (in NOI and cap rate)
Capital spending (below NOI)
Capital replacements are modelled as money actually spent on lasting improvements. They are not deducted yearly for tax; they are added to your cost base.
Hold, Exit & Tax
Marginal tax rate is the combined federal + Ontario rate on your last dollar of income. Set it to 0 to see pre-tax figures only.
Deal memo
Condo Apartment at $650,000
Year 1, monthly
Debt coverage (NOI ÷ mortgage): —
Debt coverage of 1.00 means NOI exactly pays the mortgage. Lenders on larger rentals typically look for 1.20 or higher.
Rule-of-thumb checks
Stress test
| Scenario | Monthly | Profit | IRR | Grade |
|---|
Monthly is year-1 cash flow; profit and IRR are pre-tax over the hold. Each row changes only what it names.
Over the hold
Year-by-year projection
| Year | Rent | Expenses | Mortgage | Cash flow | Balance |
|---|
How the numbers are calculated
- 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.
- Ontario land transfer tax: provincial brackets — 0.5% to $55,000, 1.0% to $250,000, 1.5% to $400,000, 2.0% to $2,000,000, 2.5% above. Toronto’s municipal LTT is added only when you tick the box.
- CMHC insurance (house hack only): under 20% down applies only to owner-occupied house hacks under $1.5M. Minimum down is 5% on the first $500,000 and 10% of the rest. Premiums: 4.00% above 95% LTV, 3.10% above 90%, 2.80% above 80%, plus 0.20% for 30-year amortization. The premium is added to the mortgage; 8% PST on the premium is paid in cash at closing.
- Rent control: units first occupied on or before November 15, 2018 are rent-controlled, so rent growth is capped at the guideline you enter. Units first occupied after that date are exempt.
- IRR, not “average ROI”: IRR accounts for when money moves. Reserves are excluded because they remain yours.
- Income & capital gains tax: taxable rental income is rent minus operating expenses minus mortgage interest. Principal is not deductible. Capital replacements are not deducted yearly; they are added to your cost base. On sale, 50% of the capital gain is taxable at your marginal rate.
Investor questions
What’s the difference between cap rate, cash-on-cash and IRR?
Cap rate measures the property’s income against its price, ignoring financing. Cash-on-cash measures year-1 cash flow against the cash you put in. IRR measures the total return over your hold, including appreciation, mortgage paydown and the timing of every cash flow.
Can a property with negative cash flow still be a good investment?
Sometimes. If rents grow, the mortgage pays down and the property appreciates, the total return can still be positive. That is exactly what the IRR and the stress test are for — they show whether the long-term return justifies the monthly top-up.
How does Ontario rent control affect my returns?
If the unit was first occupied on or before November 15, 2018, annual rent increases for a sitting tenant are capped at the provincial guideline (2.1% for 2026). Newer units are exempt. This analyzer caps rent growth at the guideline for rent-controlled units.
How much do I need down on an investment property in Ontario?
Generally 20% or more for a property you won’t live in, and CMHC insurance is not available. For a house hack where you live in one unit, the insured minimums apply: 5% on the first $500,000 and 10% of the remainder, up to $1.5M.
Why is my mortgage payment different from a US calculator?
Canadian fixed-rate mortgages compound semi-annually, not monthly. The monthly rate is (1 + annual rate ÷ 2)1/6 − 1, which produces a slightly lower payment than the US monthly-compounding formula at the same rate.
Are rental losses tax-deductible in Canada?
Rental losses can generally offset other income in the year they occur, subject to the rules for your situation. This analyzer applies your marginal rate to negative taxable rental income as a tax saving. Talk to your accountant — as a CPA, CA, I can walk through your specific situation.
Do investors pay land transfer tax in Ontario?
Yes. Ontario land transfer tax applies to every purchase, including investment properties, at the provincial brackets. The $4,000 first-time buyer refund does not apply to investment purchases. Toronto adds its own municipal land transfer tax on top.
Have Sim 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:
- 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 booking — I’ll get back to you with my take.
Call or text: (647) 632-0871 | Email: sim@simsahota.com
Ontario Rental Market Report | Affordability Calculator | Search investment properties
Investment markets I cover
Run the numbers, then find the property. Multi-family investment searches for: Toronto (GTA) · Kitchener · Waterloo · London · Guelph · Brantford · Hamilton · Barrie · Belleville · Oshawa · Whitby · Pickering
This calculator provides estimates for planning purposes only, based entirely on the inputs entered. It is not legal, tax, financial or mortgage advice, and not a lending decision. Sim Sahota, REALTOR® and CPA, CA, Coldwell Banker The Real Estate Centre, Brokerage, 2162 Major Mackenzie Drive, Vaughan, ON L6A 1P7.
Have Sim review this deal with you
I run the numbers the same way I run them on my own investments. Let us walk through this deal together.
More investment markets I cover
The searches above cover the biggest markets. These are the other in-scope Ontario cities where investors are buying now. Same live MLS multi-family search, no signup needed.
Multi-family investment searches for: Cambridge · Windsor · Chatham-Kent · Kingston · St. Catharines · Woodstock · St. Thomas · Peterborough · Bowmanville · Cobourg
More tools: Closing Costs Calculator | Investor Search Hub | Ontario Rental Market Report | Affordability Calculator
