Work out your mortgage payment in Canada. Enter the home price, your down payment, the rate and how long you want to pay it off, and see your payment, mortgage insurance, total interest and how fast the balance drops each year.
Canadian fixed-rate mortgages compound twice a year. This calculator does the same.
How fast the loan shrinks if the rate stays the same.
| Year | Principal paid | Interest paid | Balance |
|---|
How this mortgage calculator works
Canadian fixed-rate mortgages compound interest twice a year, not monthly, by law. That makes payments slightly lower than a US-style calculator would show. This calculator uses the Canadian method for every payment frequency.
Example: a $750,000 home with $150,000 down, at 4.5% over 25 years, comes to about $3,321 a month. Over the full 25 years you would pay about $396,000 in interest if the rate stayed the same.
Minimum down payment in Canada
- Up to $500,000: 5% of the price
- $500,000 to $1.5 million: 5% of the first $500,000 plus 10% of the rest
- $1.5 million or more: 20%
With less than 20% down, you need mortgage default insurance (from CMHC, Sagen or Canada Guaranty). The premium is added to your mortgage: 2.80% of the loan with 15% to 19.99% down, 3.10% with 10% to 14.99% down, and 4.00% with 5% to 9.99% down. A 30-year insured mortgage, allowed for first-time buyers and new builds, adds 0.20%.
Ways to pay less interest
- Accelerated bi-weekly payments. Half your monthly payment every two weeks adds up to one extra monthly payment a year. On the example above it cuts about 3 years and $60,000 of interest.
- Shorter amortization. Higher payments, but far less interest over the life of the loan.
- Prepayments. Most lenders let you pay down 10% to 20% of the original amount each year without a penalty.
- Bigger down payment. Reaching 20% down avoids mortgage insurance entirely. A First Home Savings Account can help first-time buyers save it tax free.
The mortgage stress test
To get approved, lenders check that you could afford payments at the higher of 5.25% or your rate plus 2%. So the payment shown here is what you would pay, but you need to qualify at a higher rate.
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Frequently asked questions
What is the monthly payment on a $500,000 mortgage in Canada?
At 4.5% over 25 years, about $2,770 a month. At 5% it is about $2,910. Enter your own rate above to check.
Is a 25 or 30 year amortization better?
A 30-year amortization lowers your payment but costs much more interest overall. Choose 30 years only if you need the lower payment, and try to prepay when you can.
Does this include property tax and insurance?
No. It shows the mortgage payment only. Budget separately for property tax, home insurance, utilities and condo fees.
This calculator gives an estimate for general information only. Your lender’s numbers may differ. Not financial advice.
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