Mortgage Payment Calculator (Canada)

Canadian fixed-rate mortgages compound semi-annually by law, not monthly, so the effective monthly rate is a little lower than the annual rate divided by twelve. This calculator uses that convention: $600,000 at 4.5% over 25 years is about $3,321 a month.

5% of the first $500,000 and 10% of the part above it, for homes under $1.5 million. At $1.5 million and up the mortgage can't be insured, so lenders require at least 20%. On a new build, the deposits you paid during construction count toward the down payment.

With less than 20% down the mortgage must be insured. The premium is a percentage of the loan: 4.00% with 5% to 9.99% down, 3.10% with 10% to 14.99%, and 2.80% with 15% to 19.99%, plus 0.20% for an amortization over 25 years. It's added to the mortgage, but Ontario's 8% sales tax on it is paid in cash on closing.

With an insured mortgage (under 20% down), 30-year amortizations are available to first-time buyers and to anyone buying a newly built home, since December 15, 2024. With 20% or more down, lenders commonly offer 30 years to any buyer. A longer amortization lowers the payment but adds a lot of interest.

Accelerated bi-weekly payments are half the monthly payment every two weeks, which adds up to one extra monthly payment a year. That goes straight to principal, so the mortgage is paid off years sooner and the total interest drops, as the calculator shows. Plain bi-weekly payments don't have that effect.

Lenders qualify you at a higher stress-test rate: currently the greater of your contract rate plus 2% or 5.25%. Your housing costs and other debts must fit their debt-service limits at that rate. For a pre-construction home, you qualify again close to closing, at the rates of the day.