Mortgage Calculator

A Canadian mortgage has two separate concepts: the amortization period (how long until the loan is fully paid off — typically 25 years) and the term (how long your current interest rate and conditions are locked in — typically 1–5 years). At the end of each term you renew, usually at a new rate. Worked example. Borrow $500,000 over 25 years at 5.5%: monthly P&I = $3,058. Total interest = $417,350. Shortening to a 20-year amortization raises the monthly payment to $3,440 but saves $95,000 in interest.

If your down payment is less than 20% of the purchase price, federal law requires mortgage loan insurance from CMHC, Sagen, or Canada Guaranty. CMHC premiums:

• Down payment 5–9.99%: 4.00% of insured loan
• Down payment 10–14.99%: 3.10%
• Down payment 15–19.99%: 2.80%

The premium is added to your mortgage balance (and you pay interest on it). On a $500,000 purchase with 5% down ($25,000), the insured loan is $475,000 and the CMHC premium is $19,000 — bringing your total mortgage to $494,000. Insured mortgages are capped at a 25-year amortization and a maximum purchase price of $1.5 million (as of December 2024). Source: CMHC

All borrowers at federally regulated lenders (banks, credit unions governed federally) must qualify at the higher of: the contract rate + 2 percentage points, or 5.25%. This means if you're offered a 5.5% mortgage, you must demonstrate you can afford payments at 7.5%. The stress test reduces maximum borrowing capacity by roughly 15–20% compared to qualifying at the contract rate. Credit unions governed provincially and private lenders may not apply the stress test — but they often charge higher rates to compensate.

Land transfer tax (LTT) is payable when you take title to a property. Rates vary significantly by province:

• Ontario: 0.5% on first $55,000; 1.0% to $250,000; 1.5% to $400,000; 2.0% to $2M. Toronto adds a municipal LTT on top.
• BC: 1% on first $200,000; 2% to $2M; 3% above $2M.
• Quebec: Welcome tax: 0.5% on first $53,200; 1.0% to $266,200; 1.5% above.
• Alberta, Saskatchewan, Nova Scotia: No provincial LTT (registration/title fees only).

First-time buyers receive a full rebate in Ontario (up to $4,000), BC (up to $8,000 on properties ≤ $500,000), and partial rebates elsewhere. The calculator applies the correct scale for your selected province.

Home Buyers' Plan (HBP): Withdraw up to $60,000 from your RRSP tax-free for a first home purchase. Must be repaid over 15 years. First Home Savings Account (FHSA): Contribute up to $8,000/year (lifetime $40,000) to a tax-free account used exclusively for a first home purchase. Contributions are tax-deductible and qualifying withdrawals are tax-free — combining the benefits of an RRSP and TFSA. First-Time Home Buyer Incentive: The federal government takes a 5% (new build) or 5–10% (resale) shared equity stake, reducing your mortgage. The stake is repaid when you sell.