If you’re buying a home with a down payment of less than 20%, you already know that you need to purchase mortgage default insurance. In Manitoba (7%), Ontario (8%) and Quebec (9%), you must also pay provincial sales tax (PST) on the default insurance premium.

For example, if your premium amounts to $5,400, the amount of PST you would have to pay on that in Ontario (8% PST) would be:

It’s important to note that PST on default insurance cannot be added to your mortgage loan – you will have to pay the PST with cash at closing.