Calculate your monthly mortgage payment and see how much home you can afford
A mortgage calculator helps you estimate your monthly mortgage payments and total borrowing costs. Whether you're a first-time homebuyer or refinancing, this tool shows how different variables affect your payment amount and total interest paid over the life of your loan.
Our calculator factors in your property price, down payment, interest rate, amortization period, and additional homeownership costs like property taxes and insurance to give you a complete picture of what you'll pay each month.
Step 1: Enter the purchase price of the property you're considering.
Step 2: Input your down payment amount. Remember, Canadian regulations require at least 5% down for homes under $500K, and 20% down avoids CMHC insurance premiums.
Step 3: Select your amortization period (the total time to pay off the mortgage). Most Canadians choose 25 years.
Step 4: Enter the interest rate offered by your lender. Shop around for the best rates!
Step 5: Add optional costs like property tax, insurance, and condo fees for a complete monthly cost estimate.
Your regular payment to the lender, covering both principal and interest based on your chosen frequency.
The loan amount after your down payment is applied. This is what you're borrowing from the lender.
The total amount you'll pay in interest over the life of your mortgage. Lower rates and shorter amortizations reduce this significantly.
Required when your down payment is less than 20%. This one-time premium protects the lender and is added to your mortgage balance.
The total length of time to pay off your mortgage completely. In Canada, the maximum is 30 years for conventional mortgages (20%+ down) and 25 years for high-ratio mortgages (less than 20% down). Longer amortizations mean lower monthly payments but more interest paid overall.
Fixed Rate: Your interest rate stays constant for the entire mortgage term, providing payment stability and protection from rate increases.
Variable Rate: Your rate fluctuates with the prime rate. Usually lower initially but carries risk if rates rise.
Monthly: 12 payments per year, the most common option.
Bi-weekly: 26 payments per year, equivalent to 12 monthly payments but aligned with bi-weekly paychecks.
Accelerated Bi-weekly: 26 payments per year, each being half your monthly payment. Results in 13 monthly payments annually, paying off your mortgage faster and saving on interest.
Canadian regulations set minimum down payment requirements based on purchase price:
Providing at least 20% down has significant advantages: no CMHC insurance required, better interest rates, lower monthly payments, and access to 30-year amortization.
Canada Mortgage and Housing Corporation (CMHC) insurance protects lenders when buyers put down less than 20%. The premium is calculated as a percentage of your mortgage amount and added to your loan balance.
CMHC Premium Rates:
While CMHC insurance increases your borrowing costs, it enables homeownership with a smaller down payment. The premium can be paid upfront or added to your mortgage balance and paid over time with interest.
Most lenders require a minimum credit score of 650 for conventional mortgages. However, scores above 700 typically qualify for better interest rates. Some alternative lenders may work with lower scores but at higher interest rates.
A general rule is that your total housing costs (mortgage, taxes, insurance, condo fees) shouldn't exceed 32% of your gross monthly income. Total debt payments shouldn't exceed 40% of gross income. Use our affordability calculator for a detailed analysis.
Fixed rates provide payment stability and protection from rate increases. Variable rates are usually lower initially but carry risk if rates rise. Your choice depends on your risk tolerance, financial flexibility, and rate outlook. Many Canadians prefer fixed rates for peace of mind.
Most Canadian mortgages allow prepayment privileges, typically 10-20% of the original principal per year without penalty. Check your mortgage contract for specific terms. Accelerated payment frequencies and lump sum payments can significantly reduce interest costs.
Amortization is the total time to pay off your mortgage (typically 25-30 years). Your term is the length of your rate commitment (typically 1-5 years). When your term ends, you renegotiate your rate and terms with your current lender or switch to a new one.