Mortgage Calculator — Canada (2026)

How Canadian mortgages work

Your monthly payment depends on three things: the mortgage amount (price minus down payment), the interest rate, and the amortization period — the total time to pay it off, commonly 25 years in Canada. This calculator computes the payment, the total interest over the full amortization, and a year-by-year schedule.

A mortgage is simply a loan secured by your home. Each payment is split into two parts: interest, which is the lender's charge for the money, and principal, which is the portion that actually pays down what you owe. At the start almost all of your payment is interest because the balance is large; as the balance falls, more of each payment goes to principal. That gradual shift is called amortization, and it is why the early years feel like slow progress and the later years move quickly.

One feature unique to Canada is that most people renew several times before the mortgage is fully paid. You borrow over a long amortization but sign a shorter term — a fixed contract length, often five years — and when the term ends you renew the remaining balance at whatever rate is available then. So the payment this calculator shows is accurate for your current term; it can change at each renewal.

What each input means

The calculator has four inputs. Here is what each one does:

• Home price — the purchase price of the property. This, minus your down payment, is what you need to borrow.
• Down payment — the cash you put in up front. A bigger down payment means a smaller mortgage, a lower payment, and — once you reach 20% — no default insurance. The hint under the field shows your down payment as a percentage of the price.
• Interest rate — the annual rate on your mortgage, entered as a percentage. Use the rate your lender or broker quotes. A small change here has a large effect over 25 years, so it is worth comparing offers.
• Amortization — the total number of years to pay the mortgage off in full. A shorter amortization means higher payments but far less interest overall; a longer one lowers the payment but costs more over time.

Two things you would set with a lender are not separate inputs here: the term (your contract length before renewal) and the payment frequency (monthly, bi-weekly, and so on). This tool shows the standard monthly payment over the full amortization so you can compare scenarios cleanly; accelerated frequencies pay a mortgage off slightly faster.

CMHC mortgage insurance

If your down payment is less than 20%, your mortgage is "high-ratio" and you must pay mortgage default insurance (commonly CMHC). The premium is a percentage of the loan that rises as your down payment shrinks, and it's added to your mortgage:

Down payment	Loan-to-value	Premium
5% – 9.99%	90.01% – 95%	4.00%
10% – 14.99%	85.01% – 90%	3.10%
15% – 19.99%	80.01% – 85%	2.80%
20% or more	80% or less	None

In Canada the minimum down payment is 5% on the first $500,000 of price (with more required above that), so under 5% down isn't generally available.

Worked example

Here is an illustration of how the pieces fit together. The numbers are rounded and hypothetical — they are meant to show the method, not to predict your own result or promise any rate.

Suppose a $500,000 home with 20% down ($100,000) at an example 5% interest rate over a 25-year amortization:

• Because the down payment is 20% or more, this mortgage is not high-ratio, so there is no CMHC insurance to add.
• The mortgage amount is $500,000 − $100,000 = $400,000.
• Spread over 25 years at 5%, the monthly payment works out to roughly $2,340.
• Over the full 25 years that is about $700,000 paid in total, meaning roughly $300,000 of that is interest on top of the $400,000 borrowed.

Now change one thing: if the same buyer put only 10% down ($50,000), the mortgage would be higher and would also carry mortgage default insurance, which is added to the loan and increases both the payment and the total interest. Try both versions in the calculator above to see the difference for your own numbers.

Fixed vs variable rate

When you choose a mortgage you also choose how the rate behaves during the term:

• A fixed rate stays the same for the whole term. Your payment is predictable and does not move if market rates rise or fall. Most people who want certainty pick fixed.
• A variable rate moves with the lender's prime rate. It can be cheaper when rates fall, but your interest cost — and sometimes your payment — rises when rates go up.

This calculator uses a single rate you enter, so it models a fixed rate for the term. If you are considering variable, try a slightly higher rate as well to see how a rate increase would affect your payment.

Term vs amortization

These two words are easy to mix up, and they mean different things in Canada. The amortization is the total time to pay the mortgage off completely — often 25 years. The term is the length of your current contract with the lender — often five years — after which you renew the balance that is left. You typically pass through several terms over one amortization, renewing at a new rate each time. The calculator shows the payment for your chosen rate across the full amortization; treat it as accurate for today's rate, knowing renewals can change it.

Reading your schedule

Early payments are mostly interest; the principal portion grows over time. Our guide on reading an amortization schedule explains why — and how extra payments can save years of interest.

Estimate only

This figures principal, interest and CMHC. It doesn't include property tax, home insurance, condo fees or land transfer tax. Mortgage rules and stress-test requirements apply — confirm with a mortgage broker or lender.

How much down payment Canada actually requires

The 20% figure people repeat is the threshold for avoiding mortgage insurance, not the legal minimum. The real minimum is tiered by purchase price, and the tiers are what decide whether a home is even financeable for you:

Purchase price	Minimum down payment	On a typical price in that band
$500,000 or less	5% of the price	$400,000 home → $20,000
$500,000 – $1,500,000	5% of the first $500,000, then 10% of the rest	$800,000 home → $25,000 + $30,000 = $55,000
Over $1,500,000	20% of the whole price	$1,600,000 home → $320,000

That middle band catches people out. Moving from a $499,000 home to a $700,000 one does not raise the requirement from 5% to 10% — it raises it to 5% on the first half-million plus 10% on the $200,000 above it. And crossing $1.5 million removes insurance eligibility entirely, so the jump from a $1.49M home to a $1.51M one is a jump from roughly $125,000 down to $302,000 down.

The stress test: why your approval is smaller than your payment

Federally regulated lenders cannot qualify you at the rate you will actually pay. Under the OSFI B-20 guideline they must test you at the higher of your contract rate plus two percentage points, or 5.25%. You pay the real rate; you are approved as though you pay the tested one.

The gap is not small. At a 4.5% contract rate you are assessed at 6.5% — on a 25-year amortization that is roughly a 20% cut to the mortgage you qualify for. This is the single most common reason a buyer is pre-approved for less than this calculator's payment suggests they could carry, and it is worth running your numbers at the tested rate as well as the real one before you shop.

Insured mortgages also cap the amortization at 25 years, which tightens the payment further. Longer amortizations are available on uninsured mortgages, and since December 2024 on some insured first-time-buyer and new-build purchases.

Closing costs this calculator does not include

The payment above is principal, interest and mortgage insurance. Several thousand dollars of one-off costs land on closing day and cannot be rolled into the mortgage, so they need their own savings:

• Land transfer tax. Charged by most provinces on the purchase price, on a sliding scale. Alberta and Saskatchewan are the notable exceptions — they charge smaller title registration fees instead. Toronto is the expensive case: buyers there pay a municipal land transfer tax on top of Ontario's, which roughly doubles the bill.
• First-time buyer rebates. Ontario, British Columbia, Prince Edward Island and the City of Toronto each rebate some or all of that tax for qualifying first-time buyers. The rules and ceilings differ by province, so check your own before budgeting for the full amount.
• Legal fees and disbursements, typically $1,000–$2,500 including title search and registration.
• Home inspection and appraisal, a few hundred dollars each, usually paid before closing rather than at it.
• Property tax and utility adjustments — reimbursing the seller for the portion of the year they have already paid.

A common planning rule is to set aside 1.5%–4% of the purchase price for closing costs, with the top of that range applying in Toronto because of the double land transfer tax. Because the rates and rebate ceilings change with provincial budgets, confirm the current figures with your province's land transfer tax page or your real estate lawyer before you rely on them.

Sources. Mortgage default insurance premiums are set by CMHC and apply when the down payment is under 20%. Qualifying rules and the stress test are administered federally; posted and policy interest rates come from the Bank of Canada.
CMHC — mortgage loan insurance cost · Financial Consumer Agency of Canada — mortgages · Bank of Canada — interest rates

Frequently asked questions

How is a Canadian mortgage payment calculated?

Your payment is based on the mortgage amount, the interest rate, and the amortization period (commonly 25 years in Canada). The calculator applies an amortization formula to spread principal and interest across your chosen payment schedule. One Canadian quirk: fixed mortgage rates are compounded semi-annually by law, which this calculation reflects.

What is the difference between term and amortization?

In Canada these are two different things. The amortization period is the total time to pay off the whole mortgage (often 25 years), while the term is the length of your current contract with the lender (often 5 years), after which you renew at new rates. You'll go through several terms over one amortization.

How does my down payment affect the mortgage?

A larger down payment means a smaller mortgage and lower payments. In Canada, if your down payment is less than 20%, you're required to pay for mortgage default insurance (often called CMHC insurance), which adds to your cost. A 20% or larger down payment avoids this.

Should I choose a shorter amortization?

A shorter amortization raises your regular payment but dramatically reduces the total interest you pay over the life of the mortgage. A longer amortization lowers each payment but costs more in interest overall — the same affordability-versus-lifetime-cost trade-off found in any mortgage.

How much interest will I pay in total?

Total interest depends on your rate, amortization length and mortgage size. Because Canadian terms renew every few years, your rate can change at each renewal, so your long-term interest also depends on where rates go when you renew.

What is the minimum down payment in Canada?

The minimum is 5% on the first $500,000 of the price, with more required on any amount above that, and a purchase price limit applies to insured mortgages. Because of this, less than 5% down is not generally available. A down payment under 20% also triggers mortgage default insurance.

Does this calculator include property tax and other costs?

No. It calculates principal, interest and CMHC insurance only. It does not include property tax, home insurance, condo or maintenance fees, or land transfer tax. Budget for those separately, since they can add a meaningful amount to your monthly cost of owning.

Can I pay my mortgage off faster?

Yes. Most Canadian mortgages allow prepayments — a lump sum, a higher regular payment, or an accelerated frequency such as bi-weekly. Any extra goes straight to principal, which shortens the amortization and reduces total interest. Check your lender's prepayment limits before you make a large one.

This calculator provides estimates for general information only and is not financial or tax advice. See our disclaimer.