Mortgage Payment Calculator (Canada): Payment and Closing Costs
Enter the price, your down payment and the rate to get your monthly mortgage payment. Then scroll to see what the home costs each month, whether it fits your income, and the cash you need on closing day. The math follows CMHC and Canadian mortgage rules.
$603,135 borrowed, including $18,135 of mortgage insurance because you are under 20% down, at 4.29% over 25 years. With tax, heat and insurance, owning this home costs about $3,951 a month.
Does it fit your income?
You would need a household income of about $140,000 to qualify for this mortgage at the stress-test rate of 6.29%. Enter your income above and this section checks your numbers. To find your maximum price instead, use the affordability calculator.
Cash you need on closing day: $75,326
| Down payment | $65,000.00 |
| Ontario land transfer tax | $9,475.00 |
| Ontario first-time buyer refund | − $4,000.00 |
| Provincial sales tax on the mortgage insurance premium | $1,450.80 |
| Legal fees and disbursements | $1,500.00 |
| Title insurance | $400.00 |
| Home inspection | $500.00 |
| Adjustments (prepaid property tax, utilities) | $1,000.00 |
| Total cash to close | $75,325.80 |
Land transfer tax is the real figure for Ontario with the first-time buyer rebate. Legal, title and adjustment figures are typical estimates.
What a bigger down payment changes
| Down payment | $65,00010% · you | $97,50015% | $130,00020% |
|---|---|---|---|
| Mortgage insurance | $18,135 | $15,470 | none |
| Mortgage | $603,135 | $567,970 | $520,000 |
| Monthly payment | $3,268.14 | $3,077.59 | $2,817.67 |
| Cash to close | $75,326 | $107,613 | $138,875 |
| Interest over 25 years | $377,307 | $355,310 | $325,298 |
Over the life of the mortgage
Interest in red, principal in blue, each year. Early payments are mostly interest. The line marks your first renewal.
Fixed 4.29% or variable 3.65%? Variable would be $3,068.17 per month and save $17,604 this term if rates stay put. It only loses if its average over the term ends up above 4.25%.
Pay it off faster: accelerated bi-weekly payments of $1,634.07 save $55,595 of interest and end the mortgage in 21.77 years.
The costs people forget to budget
| Mortgage payment (monthly) | $3,268.14 |
| Property tax: Estimated at 0.8% of value a year. Pick a city for its real rate | $433.00 |
| Home insurance: Required by the lender | $100.00 |
| Heat, hydro, water: Utilities a renter often had included | $150.00 |
| Maintenance and repairs: The 1%-of-value-a-year rule of thumb | $542.00 |
| What this home really costs each month | $4,493.14 |
One-time costs not above: moving ($1,000 to $5,000), appliances and furniture, and a home inspection if you had one.
Year-by-year schedule
| Year | Paid | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $39,218 | $25,379 | $13,839 | $589,296 |
| 2 | $39,218 | $24,779 | $14,439 | $574,857 |
| 3 | $39,218 | $24,152 | $15,065 | $559,792 |
| 4 | $39,218 | $23,499 | $15,718 | $544,073 |
| 5 | $39,218 | $22,818 | $16,400 | $527,673 |
| 6 | $39,218 | $22,107 | $17,111 | $510,562 |
| 7 | $39,218 | $21,365 | $17,853 | $492,709 |
| 8 | $39,218 | $20,590 | $18,627 | $474,082 |
| 9 | $39,218 | $19,783 | $19,435 | $454,647 |
| 10 | $39,218 | $18,940 | $20,278 | $434,369 |
| 11 | $39,218 | $18,061 | $21,157 | $413,212 |
| 12 | $39,218 | $17,144 | $22,074 | $391,138 |
| 13 | $39,218 | $16,186 | $23,031 | $368,107 |
| 14 | $39,218 | $15,188 | $24,030 | $344,077 |
| 15 | $39,218 | $14,146 | $25,072 | $319,005 |
| 16 | $39,218 | $13,059 | $26,159 | $292,846 |
| 17 | $39,218 | $11,924 | $27,293 | $265,553 |
| 18 | $39,218 | $10,741 | $28,477 | $237,076 |
| 19 | $39,218 | $9,506 | $29,711 | $207,365 |
| 20 | $39,218 | $8,218 | $31,000 | $176,365 |
| 21 | $39,218 | $6,874 | $32,344 | $144,021 |
| 22 | $39,218 | $5,471 | $33,746 | $110,275 |
| 23 | $39,218 | $4,008 | $35,210 | $75,065 |
| 24 | $39,218 | $2,481 | $36,736 | $38,329 |
| 25 | $39,217 | $889 | $38,329 | $0 |
Show the math
Canadian fixed-rate mortgages compound semi-annually (Interest Act s. 6): rate per payment = (1 + 4.29%/2)^(2/12) − 1 = 0.3543%. Payment = P × i ÷ (1 − (1+i)^−n) with P = $603,135.00. Mortgage insurance: 3.10% of the loan, added to the mortgage. The provincial sales tax on it ($1,450.80) is paid in cash. Stress test: the higher of your rate + 2% and 5.25%. Lenders cap housing costs at 39% of gross income and housing plus debts at 44%. Defaults when you leave a field at 0: property tax at the chosen city's published rate (or 0.8% of price a year elsewhere), heat $150 and insurance $100 a month, maintenance 1% of price a year. Variable rates are compared with monthly compounding.
How this calculator works
A mortgage payment is the level amount that repays the loan, with interest, over the amortization period. The standard formula is:
Payment = P × i ÷ (1 − (1 + i)−n), where P is the amount borrowed, i is the interest rate per payment period and n is the total number of payments.
The Canadian twist is in i. Section 6 of the Interest Act says fixed-rate mortgage interest must be stated as compounded yearly or half-yearly, and lenders use half-yearly. So the monthly rate is not the annual rate divided by 12. It is (1 + rate ÷ 2)1/6 − 1.
Mortgage default insurance is required whenever the down payment is under 20% of the price. The calculator applies CMHC’s premium table to the loan-to-value ratio, adds the 0.20% surcharge for amortizations over 25 years, and adds the premium to the mortgage. In Ontario, Quebec and Saskatchewan the sales tax on the premium is due in cash at closing, so it is shown separately.
Accelerated payments are half (bi-weekly) or a quarter (weekly) of the monthly payment, which adds up to one extra monthly payment a year. The calculator runs the full schedule to find the real payoff date.
Worked example: $600,000 home, 10% down, 4.5% over 25 years
| Line | Amount |
|---|---|
| Purchase price | $600,000.00 |
| Down payment (10%) | − $60,000.00 |
| Loan before insurance | $540,000.00 |
| Loan-to-value | 90.0% |
| CMHC premium (3.10% of the loan) | + $16,740.00 |
| Ontario sales tax on the premium, paid at closing | $1,339.20 |
| Total mortgage | $556,740.00 |
| Monthly rate: (1 + 0.045 ÷ 2)1/6 − 1 | 0.37153% |
| Monthly payment | $3,081.41 |
| Total interest over 25 years | $367,680.55 |
| Accelerated bi-weekly payment (half the monthly) | $1,540.70 |
| Payoff with accelerated bi-weekly payments | 21.69 years, saving $55,759 in interest |
Assumptions
- The rate stays the same for the whole amortization. A Canadian mortgage is really a series of terms, often 5 years, that renew at new rates, so only the first term’s payment is certain.
- Semi-annual compounding for the fixed rate. The variable-rate comparison uses monthly compounding.
- Payments are principal and interest only. Property tax, home insurance, condo fees and utilities are extra.
- A 30-year insured amortization is limited to first-time buyers and newly built homes. The premium surcharge is applied, but eligibility is not checked.
- Insurance figures use CMHC’s table. Sagen and Canada Guaranty charge the same standard premiums.
By city
CalgaryEdmontonHalifaxHamiltonKitchener-WaterlooLondonMontrealOttawaQuebec CityReginaSaskatoonTorontoVancouverVictoriaWinnipeg
What first-time buyers can claim
Most of these are claimed by your lawyer at closing or on your next tax return. None are automatic.
- Weeks before closingHome Buyers’ Plan ↗
- Before closingOpening an FHSA ↗
- At closingOntario land transfer tax refund for first-time buyers ↗
- At closingToronto municipal land transfer tax rebate ↗
- At closingBC first-time home buyers’ program ↗
- At closingPEI first-time home buyers’ exemption ↗
- Next tax returnQuebec refundable tax credit for access to homeownership (Information Bulletin 2026-2) ↗
- Next tax returnHome buyers’ amount (line 31270) ↗
- New builds onlyFirst-time home buyers’ GST/HST rebate ↗
You may also qualify for
- Mortgage default insurance rules (CMHC) ↗ How the 30-year amortization for first-time buyers and the $1.5M insured cap work.
Common questions
Frequently asked questions
- Why is my Canadian mortgage payment lower than an American calculator shows?
- Canadian fixed-rate mortgages compound semi-annually by law (Interest Act, section 6). US mortgages compound monthly. At 5% the effective monthly rate is 0.4124% in Canada versus 0.4167% in the US. On a $500,000 mortgage over 25 years that is $2,908 a month here versus $2,923 there.
- Can I get a 30-year amortization?
- With less than 20% down, 30 years is allowed only if at least one buyer is a first-time home buyer or the home is newly built. Otherwise the maximum is 25 years. With 20% or more down, lenders can offer 30 years to anyone, and some go longer. A longer amortization lowers the payment but adds a lot of interest.
- What is the difference between bi-weekly and accelerated bi-weekly payments?
- A regular bi-weekly payment is the monthly amount times 12 divided by 26, so you pay the same total each year. An accelerated bi-weekly payment is half the monthly payment, paid 26 times. That equals 13 monthly payments a year. The extra month goes straight to principal and usually shortens a 25-year mortgage by about three years.
- What rate do I need to qualify at under the stress test?
- Lenders must qualify you at the greater of your contract rate plus 2 percentage points and 5.25%. At a 4.5% contract rate you must show you could afford payments at 6.5%. The rule applies to insured and uninsured mortgages. Since November 2024, uninsured borrowers who switch lenders at renewal without changing the loan are exempt.
- Does the payment include property tax and home insurance?
- No. The payment shown is principal and interest only. Lenders usually add a monthly property-tax instalment, and you pay home insurance separately. Property tax runs roughly 0.5% to 1.2% of the price a year, depending on the city. With heat, utilities, insurance and any condo fees, a $600,000 home often costs $600 to $900 a month on top of principal and interest. Lenders test your budget with those costs included.
- How do variable-rate mortgages compound?
- There is no legal rule. Many lenders compound variable rates semi-annually like fixed rates, but monthly compounding is common. The calculator uses semi-annual compounding for the fixed rate you enter and monthly compounding for the variable-rate comparison. If your variable lender compounds semi-annually, its payment will be slightly lower than the comparison shows.
- How much cash do I need on closing day?
- Your down payment plus closing costs. Those are land transfer tax (partly rebated for first-time buyers in Ontario, BC, PEI and Quebec), the provincial sales tax on the CMHC premium if you have one, legal fees and disbursements, title insurance, and adjustments for prepaid property tax or utilities. Budget 1.5% to 4% of the price on top of the down payment.
- Fixed or variable in 2026?
- A variable rate is usually lower today, but it moves with the Bank of Canada's policy rate. The calculator shows the variable rate at which the two cost the same over your term. If you expect rates to stay below it, variable wins. Variable-rate penalties are also smaller (three months' interest) if you break the mortgage.
- What happens at the end of my 5-year term?
- The balance shown at the end of the term is what you renew, at whatever rates apply then. Only the interest and principal of the first term are certain. The mortgage renewal calculator shows what a rate change does to your payment at that point.
Guides for this calculator
- First-Time Home Buyers' GST Rebate (2026)First-time buyers get all the GST back on a new home up to $1 million, shrinking to zero at $1.5 million. Who qualifies, dates, forms and how to claim.
- Every first-time home buyer program in Canada for 2026, stackedThe GST rebate, FHSA, Home Buyers' Plan, $1,400 credit, 30-year mortgages and provincial land transfer relief for first-time buyers in 2026, stacked.
- Foreign Buyer Rules in Canada to 2027The federal foreign buyer ban runs to January 1, 2027. Ontario's 25% tax, Toronto's 10%, BC's 20% and Nova Scotia's 10% apply either way. Who is exempt.
- Ontario's $130,000 new-home HST rebate: who gets it, when, and howSign between April 1, 2026 and March 31, 2027 and Ontario removes the full 13% HST on a new home up to $1 million. The rules, phase-outs and how to claim.
- The Smith Manoeuvre Explained (2026)Interest on money borrowed to invest is deductible. Mortgage interest is not. How a readvanceable mortgage turns one into the other, and what breaks it.
Sources
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CMHC, Premium information for homeowner and small rental loans
- CMHC, Notice: CMHC revises homeowner mortgage loan insurance premiums (30-year surcharge)
- Department of Finance Canada, Boldest mortgage reforms in decades come into force (December 15, 2024)
- Financial Consumer Agency of Canada, How much you need for a down payment
- OSFI, Minimum qualifying rate for uninsured mortgages
- Interest Act, R.S.C. 1985, c. I-15, s. 6 (Justice Laws)
- Bank of Canada, Policy interest rate
- Ontario Ministry of Finance, Retail Sales Tax on insurance and benefits plans
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