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Buyer FAQ: How much money do I need to buy a Hamilton home?


I’m sure it comes as no surprise that Hamilton house prices have skyrocketed in the past few years.  The first question on the minds of buyers looking to buy their first home, or to relocate, is often:

“How much money do I need to buy a home in Hamilton?”

Although this question will have various answers based on  your standards and what you’re looking for, a good starting point is the average price in October 2020 : $665,000.

This average price encompasses all sales, whether condos, townhomes, semi-detached and detached homes. It also includes areas that are part of the “Greater Hamilton Area”.  Stoney Creek, Ancaster, Dundas, Flamborough and Waterdown are, statistically, part of Hamilton.  However, they do tend to run on the high side of property values.

If we exclude these five areas, the average price drops to $565,900.

How can you figure out how much money you need to buy one of these Hamilton homes, whether in the main part of the city or in one of the outlying areas?


Minimum Down Payment

The minimum down payment required for any home purchase is 5% on the first $500,000 and 10% on the balance over $500,000. Purchases of $1,000,000 and over require 20% down.

For an average Hamilton home at $665,000, the breakdown would be as follows:

First $500,000 = $25,000

500,000-665,000 = 165,000 at 10% = $16,500

Total required down payment = $41,500



Using the figures above, you will need a mortgage of $648,440, which includes the $24,940 CMHC premium added to your loan.

To qualify you for this mortgage, banks and other lenders will use TDS and GDS ratios that take into consideration your income and debts.

A $665,000 purchase with the minimum down payment of $41,500 requires you to show a household income of $135,000 with no debt. This would be a mortgage with a rate of 1.79% amortized over 25 years.

If you have car loans or credit card debt, these will lower your purchasing power.


Closing Costs

Besides your down payment, you need to have additional funds to cover your closing costs. You can read more about all the fees here.

A good way to estimate is to add 1.5% of the purchase price.

For a $665,000 purchase, plan on spending around $9,975 on closing costs.

If you are a first-time buyer, you will get a credit of $4000 off your land transfer tax. Your cost would then be $5,975.


In a nutshell, to afford a home in Hamilton for $665,000 you’ll need:

  • $41,500 for your down payment
  • $135,000 annual household income
  • $9,975 for closing costs, unless you’re a first-time buyer.


If you would like us to help you determine what you can afford based on your specific details, reach out!


Additional resources:

Down payment Savings Calculators

Mortgage Affordability Calculator

CMHC Premium Calculator

Land Transfer Tax Calculator

Debt Repayment Calculator

Mortgage Payment Calculator

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