Mortgage

Mortgage Calculator

Estimate Canadian mortgage payments, total interest, monthly housing costs, and the effect of optional extra payments.

Home price (CAD) Down payment (CAD) Interest rate (%) Amortization (years) Payment frequency Extra payment per period Annual property tax Monthly insurance/fees

Payment per period

Estimated monthly cost

Mortgage amount

Total interest

Estimated payoff

Interest saved

Monthly cost breakdown

Educational estimate only. Mortgage approvals, CMHC insurance, compounding rules, prepayment privileges, taxes, condo fees, closing costs, and lender policies can change the final numbers.

Tool guide

How to use Mortgage Calculator

Mortgage Calculator gives you a focused way to handle one small task quickly. Estimate mortgage payments, total interest, and monthly housing costs. It is free to use, requires no login, and is built for quick checks when you need a practical result.

Useful for

Calculate monthly, bi-weekly, or weekly mortgage payments based on purchase price and down payment.
Determine how down payment size affects mortgage loan insurance (CMHC) requirements and total mortgage amount.
Compare amortization periods (e.g., 25 vs 30 years) to balance monthly budget size against lifetime interest cost.
Stress-test your finances by checking payments under interest rate changes.

Example

For example, enter a home price of $600,000 with a down payment of $120,000 (20%) and an interest rate of 4.5% over a 25-year amortization. The calculator will output your principal and interest payment of $2,657 per month, showing you the total interest paid over the life of the loan.

Good to know

Results are meant for quick planning and double-checking. For legal, tax, or financial decisions, review the numbers with a qualified professional.

How it works

The mortgage calculator calculates payments using standard compounding and amortization formulas. In Canada, mortgages are compounded semi-annually by law, which is built into the calculation. It accepts home price, down payment (automatically calculating minimum down payment rules), amortization, and interest rates. It can also incorporate property taxes, heating costs, and condo fees to evaluate total debt serviceability.

Mortgage Principal = Home Price - Down Payment + CMHC Premium (if down payment is < 20%). Monthly Payment = Principal x [r(1+r)^n] / [(1+r)^n - 1] where r is the periodic interest rate and n is the total number of payments.

Practical examples

Buying a $450,000 home with a 10% down payment ($45,000) adds a 3.10% CMHC insurance premium ($12,555) to the mortgage principal, bringing the total loan to $417,555.
A $500,000 mortgage at 5.0% over 25 years costs $2,908/month, with $372,504 total interest paid over the life of the mortgage.
The same $500,000 mortgage at 5.0% over 30 years costs $2,668/month (saving $240/month), but increases total interest paid to $460,547 (costing $88,043 more over time).

Common mistakes

Forgetting about CMHC insurance: in Canada, if your down payment is between 5% and 19.99%, you must pay for default insurance, which is added to your mortgage principal.
Failing to plan for closing costs: legal fees, land transfer taxes, and home inspections usually require 1.5% to 4% of the purchase price in cash upfront (they cannot be added to the mortgage).
Ignoring the mortgage stress test: banks qualify you at a higher rate (usually contract rate + 2%) to ensure you can handle future rate hikes.

Questions

What is the minimum down payment in Canada?

For homes up to $500,000, the minimum down payment is 5%. For the portion of the price between $500,000 and $999,999, you must put down 10%. Homes priced at $1 million or more require a flat minimum down payment of 20%.

What is CMHC mortgage loan insurance?

It is default insurance required by law on high-ratio mortgages (down payments under 20%). It protects the lender in case you default on payments, allowing lenders to offer lower interest rates.

Should I choose a 25-year or 30-year amortization?

A 30-year amortization offers lower monthly payments, which helps cash flow. A 25-year amortization requires higher monthly payments but saves a substantial amount of interest over the lifetime of the mortgage.

How do fixed and variable interest rates differ?

A fixed-rate mortgage locks in your interest rate and payment size for the entire term (e.g., 5 years). A variable-rate mortgage fluctuates with the lender's prime rate, meaning your rate (and potentially your payment) can go up or down.