Mortgage Calculator Canada
Work out your real monthly mortgage payment using Canada's semi-annual compounding, current CMHC insurance rules, the stress test, and land transfer tax for your province.
Most calculators give you principal and interest and stop there. This one shows you the number you'll actually pay, and the cash you'll actually need at closing.
Mortgage Calculator
$2,113
$2,529 total monthly
$233,837
on $400,000 borrowed
$758,823
over 25 years
Borrowing $400,000 at 4.04% costs $2,113 per month principal & interest (total $2,529 with tax & insurance) and is paid off in 2051.
Canadian Mortgage Rates This Week
As of 29 July 2026, the best advertised insured five-year fixed rate in Canada is around 3.94% to 4.04%, and the best insured five-year variable is around 3.25% to 3.45%.
| Product | Best advertised rate |
|---|---|
| 5-year fixed (insured) | 3.94% to 4.04% |
| 5-year variable (insured) | 3.25% to 3.45% |
| 3-year fixed (insured) | 3.84% |
| Big Six average discounted 5-year fixed (conventional) | 4.92% |
Behind those numbers:
- The Bank of Canada held its policy rate at 2.25% on 15 July 2026, its sixth consecutive hold. Next decision: 2 September 2026.
- Most lenders' prime rate is 4.45%, which is what variable-rate pricing is quoted against.
- The Government of Canada five-year bond yield is around 3.0% to 3.15%, which is what fixed rates are priced off.
Note that advertised "best rates" differ between comparison sites because each surveys a different lender panel. Treat them as a floor for negotiation, not a quote. The rate you're offered depends on your credit profile, down payment, property type, and whether your mortgage is insured.
How This Calculator Works
Enter the purchase price, your down payment, an interest rate, and an amortization period. The calculator returns your payment and, if you expand the panels, everything else that determines what the mortgage actually costs you.
What it calculates
- Principal and interest, using semi-annual compounding
- CMHC mortgage default insurance, automatically applied when your down payment is under 20%
- Stress test qualification: the payment you must qualify at, and implied income
- Land transfer tax for your province, including Toronto's municipal tax
- Total cash required at closing, including closing costs
- Full amortization schedule, showing principal vs interest year by year
What it assumes
- Your interest rate stays constant for the whole amortization
- Property tax defaults to a provincial estimate, heating to $150/mo
- Payments are made on schedule with no prepayments unless added
- CMHC premiums are added to the mortgage balance
- Provincial sales tax on CMHC premium is shown separately (payable in cash)
What Actually Goes Into a Canadian Mortgage Payment
Your regular payment covers two things: principal, which reduces what you owe, and interest, which is the cost of borrowing.
Early in the amortization, most of each payment is interest. On a $400,000 mortgage at 4.04%, the first payment splits roughly $1,335 interest to $778 principal. That ratio inverts over time, and the crossover point comes later than most people expect, a little past the halfway mark of a 25-year amortization.
What's included and what isn't
Included in your mortgage payment: principal and interest. Some lenders will also collect property tax with your payment and remit it for you.
Not included, but still your cost of ownership: property tax (if you pay it directly), home insurance, condo or strata fees, utilities and heating, and maintenance.
This is worth stating plainly because the gap catches people out. Lenders use a broader figure than your mortgage payment when they assess you. For qualification they look at PITH (principal, interest, property tax and heating) plus 50% of condo fees where applicable. Your mortgage payment might be $2,113; the number the lender tests could be closer to $3,050.
Semi-Annual Compounding: And What It's Worth in Dollars
Canadian fixed-rate mortgages are compounded semi-annually, not in advance. American mortgages compound monthly. This is a legal convention with roots in the federal Interest Act, and it means a US mortgage calculator will give you the wrong answer for a Canadian mortgage.
At 4.04%, that gives a monthly rate of 0.333864%, rather than the 0.336667% you'd get by dividing by twelve.
The difference, quantified
Here is the difference on a $400,000 mortgage at 4.04% over 25 years:
| Method | Monthly payment | Total over 25 years |
|---|---|---|
| Correct (Canadian semi-annual) | $2,112.79 | $633,837 |
| Incorrect (US monthly) | $2,120.28 | $636,084 |
| Difference | $7.49/month | $2,247 saved |
One exception worth knowing: variable-rate mortgages in Canada generally compound monthly, not semi-annually.
Down Payment and CMHC Insurance
The minimum down payment is tiered
- 5% on the first $500,000 of the purchase price
- 10% on any portion between $500,000 and $1,499,999
- 20% on homes priced at $1.5 million or more
Worked example: On a $600,000 home, the minimum is $35,000, being 5% of the first $500,000 ($25,000), plus 10% of the remaining $100,000 ($10,000). Effective down payment: 5.83%.
The $1.5 million cliff
The threshold at $1.5 million is a genuine cliff. At $1,499,999, the tiered minimum is about $125,000. At $1,500,000, the minimum is $300,000 because 20% becomes mandatory. One dollar of purchase price changes your required cash by roughly $175,000.
What CMHC insurance costs
| Down payment | Loan-to-value | Premium |
|---|---|---|
| 5% to 9.99% | 95% | 4.00% |
| 10% to 14.99% | 90% | 3.10% |
| 15% to 19.99% | 85% | 2.80% |
| 20%+ | 80% or less | None required |
The closing cost almost nobody warns you about
In Ontario, Quebec and Saskatchewan, provincial sales tax on the CMHC premium is payable in cash at closing. It cannot be rolled into the mortgage. On a $22,600 premium in Ontario at 8%, that's roughly $1,808 in cash required on closing day.
Can you get a 30-year amortization?
Insured mortgages are normally capped at 25 years. Thirty years is available to first-time buyers and to purchasers of newly built homes, with a 0.20% premium surcharge.
| Amortization | Monthly payment | Total interest |
|---|---|---|
| 25 years | $3,105 | $343,795 |
| 30 years | $2,813 | $424,022 |
The Stress Test and Whether You'll Qualify
How the stress test works
Federally regulated lenders must qualify you at the higher of your contract rate plus 2%, or 5.25%, a requirement of OSFI Guideline B-20.
On a $400,000 mortgage at 4.04% (actual payment $2,113/mo), you must qualify at 6.04% (qualifying payment $2,569/mo).
Debt service ratios
| Ratio | What it measures | Insured limit | Uninsured (typical) |
|---|---|---|---|
| GDS | Housing costs ÷ gross income | 39% | around 32% |
| TDS | All debt payments ÷ gross income | 44% | around 40% |
Term vs. Amortization: The Distinction That Confuses Everyone
Amortization is how long until the mortgage is fully repaid (typically 25 years). Term is how long your current contract lasts (most commonly five years). At the end of the term, your mortgage is renewed at a new rate. So a 25-year amortization typically involves five separate contracts.
Payment Frequency and Accelerated Payments
Accelerated bi-weekly payments divide your monthly payment by two and take 26 payments per year. Because 26 half-payments equals 13 monthly payments, you make one extra monthly payment per year.
| Option | Payment | Paid per year | Amortization | Total interest |
|---|---|---|---|---|
| Monthly | $2,112.79 | $25,353 | 25 years | $233,837 |
| Accelerated bi-weekly | $1,056.40 | $27,466 | 21 yrs 11 mo | $200,564 |
Result: Pays off mortgage 3 years 1 month early, saving roughly $33,000 in interest!
Renewing in 2026: What to Expect
Roughly 60% of all outstanding Canadian mortgages renew in 2025 or 2026. About 60% of those renewing are expected to see a payment increase, while roughly a quarter of 2026 renewers will see their payment fall by at least 7%.
What to do about it:
- Start shopping 120 days out: hold rates for 90 to 120 days.
- Switching lenders at renewal carries no prepayment penalty.
- Don't accept the initial renewal letter rate without negotiating.
- Extending your amortization lowers monthly payments if cash flow is tight.
- A lump-sum prepayment before renewal reduces the balance for the new term.
- Contact your lender early if you face financial strain.
Fixed vs. Variable
Variable rates track lenders' prime rate (following Bank of Canada decisions). Fixed rates are priced off Government of Canada bond yields plus lender spread. Variable is currently lower (3.25% to 3.45%), whereas fixed (3.94% to 4.04%) provides rate certainty.
Closing Costs and Land Transfer Tax
Budget 1.5% to 4% of the purchase price for closing costs. On a $500,000 home in Ontario, provincial land transfer tax is about $6,475 (in Toronto, combined tax is ~$12,950).
| Item | Typical range |
|---|---|
| Legal fees and disbursements | $1,500 to $3,000 |
| Title insurance | $250 to $500 |
| Home inspection | $400 to $700 |
| Appraisal | $300 to $500 |
| PST on CMHC premium (ON, QC, SK) | Varies (payable in cash at closing) |
Worked Examples
$500,000 home, 20% down
$2,113 / mo
$100,000 down, $400,000 mortgage, 25-year amortization. No CMHC insurance required. Total interest: $233,837.
$600,000 home, minimum down
$3,105 / mo
$35,000 down (5.83%), borrowing $565,000 + $22,600 CMHC premium = $587,600 total mortgage.
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Methodology, Sources and Disclaimer
Fixed-rate payments use semi-annual compounding as required for Canadian fixed-rate mortgages: i = (1 + r/2)^(1/6) − 1. Variable-rate payments use monthly compounding.
Disclaimer: CalcVault is not a lender, mortgage brokerage, or financial advisor. This content is for general information only.