Monthly Payment
Loan Amount
Total Interest
Total Cost
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Enter home price, down payment, term, rate. See monthly payment, total interest, amortization schedule.
Biggest financial decision. Understand true costs, compare scenarios, determine affordability.
5% under $500k, 10% $500k-$1.5M, 20% over $1.5M.
Mortgage payment only; add taxes, insurance, insurance separately.
Fixed: predictable; variable: changes with Bank of Canada rate.
Typically 5-year terms with 25-year amortization.
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You must qualify at the higher of your contract rate + 2% OR 5.25%, whichever is higher. For example: a 5% contract rate means you qualify at 7%. This stress test typically reduces your borrowing power by 15-20%. The test exists so you can handle rate increases without defaulting. The rule was tightened in 2021 and has been stable since, but it's reviewed annually by the Office of the Superintendent of Financial Institutions (OSFI). Some first-time buyer programs and insured mortgages may have different rules.
As of 2026, the best 5-year fixed rates from major banks are around 4.79-5.14%. Variable rates are typically prime minus 0.5% to prime minus 1%. Prime is 6.20% at major banks, so variable is around 5.20-5.70%. Online-only lenders (like Neo Financial, Tangerine) often beat the big banks by 0.10-0.30%. Always compare the effective APR, not just the posted rate — a 5.99% rate with cashback may be better than a 5.49% with no cashback, depending on your term.
Variable rates historically win over the long term but with risk. Fixed rates are higher (typically 0.5-1% over variable) but predictable. When the Bank of Canada is cutting rates, variable looks attractive. When rates are stable or rising, fixed protects you. A common strategy: start with variable if you can handle payment increases, lock in fixed if you need certainty. Most first-time buyers in 2026 prefer variable because of expected rate cuts.
CMHC (Canada Mortgage and Housing Corporation) insurance protects the lender if you default. You need it when your down payment is less than 20%. Premiums range from 3-6% of the mortgage, added to your loan. With 5-9.99% down, premium is 4%; 10-14.99% = 3.1%; 15-19.99% = 2.8%. With 20%+ down, no CMHC needed. CMHC is one of three insurers (CMHC, Sagen, Canada Guaranty). The cost is the same across all three — it's the rate that matters.
Minimum down payment in Canada depends on price: under $500K = 5% minimum; $500K-$999,999 = 5% on first $500K + 10% on the rest; $1M+ = 20% minimum. Putting less than 20% triggers CMHC insurance (3-6% premium). Putting 20%+ saves you the insurance cost but ties up more cash. Most financial advisors recommend 20% if you can afford it without emptying your emergency fund. The opportunity cost of using your savings for a down payment vs investing it is also worth considering.
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The Toolzie Mortgage Calculator helps Canadians calculate monthly mortgage payments with full amortization schedules. Enter your home price, down payment, interest rate, and amortization period to see exactly what you'll pay each month — and how much goes to principal vs. interest.
Canadian mortgages compound semi-annually by law, unlike US mortgages which compound monthly. This results in a slightly different effective rate.
5% for homes under $500,000; 10% on the portion between $500,000 and $999,999; 20% for homes $1M and above.
If your down payment is less than 20%, you are required to get mortgage default insurance through CMHC, Sagen, or Canada Guaranty.
Most Canadians choose 25 years. A shorter amortization (15–20 years) saves significant interest but raises monthly payments.