Mortgage Payment Calculator Canada

To use the calculator, start by entering the purchase price. Then, select an amortization period and mortgage rate. The calculator shows the best rates available in your province, but you can also add a different rate. The calculator will now show you what your mortgage payments will be.

By default, the mortgage payment calculator will show four different monthly payments, depending on the size of your down payment. It will automatically calculate the cost of mortgage default insurance. You can change the size of your down payment and the payment frequency to see how your regular payment will be affected.

Our calculator also shows you what the land transfer tax will be, and approximately how much cash you’ll need for closing costs. Additionally, you can use the calculator to estimate your total monthly expenses, see what your payments would be if mortgage rates go up and show what your outstanding balance will be over time.

If you’re buying a new home, it’s a good idea to use the calculator to determine what you can afford before you start house-hunting. If you’re renewing or refinancing and know the total amount of the mortgage, use the “Renewal or Refinance” tab to estimate mortgage payments without accounting for a down payment.

In order to effectively use this calculator, here is the information you’ll need to have:

• Home price: The dollar amount of your home
• Down payment: The dollar amount that you are able to pay up front when purchasing your home
• Condo fees (if applicable): The approximate dollar amount of any monthly condo fees you may be liable for

Yes! Using Ratehub.ca’s mortgage payment calculator is completely free, and a great way to determine your overall mortgage affordability when setting a home-buying budget.

The mortgage payment calculator will automatically present you with four down payment scenarios, so you can directly compare how your mortgage rate and payments will differ depending on how much cash you can pay up front on your home purchase.

The left-most column will display the smallest down payment you can make, based on the home’s asking price; this amount is 5% for homes priced under $500,000, and then an additional 10% for the portion between $500,000 to $1.5 million. For example, an asking price of $650,000 will require a minimum down payment of 6.2% ($40,300). In the remaining columns, the calculator will show you what your mortgage could look like with a 10%, 15%, or 20% down payment. If the asking price is $1.5 million or more, the calculator will automatically display a 20% down payment (the minimum for homes priced more than $1.5 million) in all columns. You can also change these down payment amounts manually to suit your specific circumstances.

Let’s take a look at what a monthly mortgage payment would be for a home priced at $500,000, and a mortgage amortized over 30 years. 

A 30-year amortization is only available for “low-ratio” mortgages, meaning the buyer has paid 20% or more as their down payment, first-time home buyers, and those purchase newly constructed homes.

Assuming this is a low-ratio borrower, according to our calculator:

• Home purchase price: $500,000
• Down payment: 20% ($100,000)
• CMHC Insurance: $0
• Total mortgage: $400,000
• Amortization: 30 years
• Five-year fixed mortgage rate: 5.24%
• Payment frequency: Monthly

= Mortgage payment: $2,192

An amortization schedule shows your monthly payments over time and also indicates the portion of each payment paying down your principal vs. interest. The maximum amortization in Canada is 25 years on down payments less than 20% (with the exception of first-time home buyers or new construction purchases, which have up to 30 years). The maximum amortization period for all mortgages is 35 years (only available from alternative or B-lenders).

Though your amortization may be 25, 30 or 35 years, your term will be much shorter. With the most common term in Canada being 5 years, your amortization will be up for renewal before your mortgage is paid off, which is why our amortization schedule shows you the balance of your mortgage at the end of your term.

Learn more about the difference between amortization and mortgage terms. 

A borrower’s income is an important consideration when qualifying for a mortgage; a lender will want to confirm a mortgage applicant has sufficient cash flow to cover their regular mortgage payments, along with their other debt obligations and cost of living expenses. Mortgage lenders will use two ratios, called the Gross Debt Ratio, and Total Debt Ratio, to determine whether a borrower’s existing debt and expenses are within a manageable range, and that they can also take on a mortgage without presenting a default risk (a sudden inability to make their mortgage payments). 

Learn more about debt service ratios

Borrowers with sufficient income, good credit standing and lower debt ratios will qualify for the most competitive mortgage rates, which in turn will affect how much they’ll pay on their mortgage; a lower mortgage rate can help save thousands of dollars over the course of their mortgage’s amortization.

Monthly mortgage payments are the most common, but depending on your mortgage product, you may have the ability to increase the frequency of your payments, or make a large lump sum payment on occasion. The benefit of this is that it helps pay your mortgage down faster, thereby reducing the amount of interest paid on the mortgage.

Mortgage frequency options include, but are not limited to, weekly, bi-weekly, and accelerated bi-weekly payments. Learn more about your mortgage payment options.

While plugging your info into our calculator is a fast and convenient way to determine your mortgage payments, let’s break down the math. First, Let’s assume you are buying a home with an asking price of $500,000, and are making a down payment of 20% ($100,000), with a mortgage rate of 4.89%, and amortization of 25 years.

Step 1: calculate your mortgage principal amount with the following formula:

Purchase price - down payment = mortgage principal

$500,000 - $100,000 = $400,000

Step 2: Determine your monthly interest rate

Take your 4.89% rate and divide by 12 to determine your monthly interest rate = 0.00489.

Monthly interest rate = annual interest (%) / 100 / 12 months 

Monthly interest rate = 4.89 / 100 / 12 

Monthly interest rate = 0.00489

Step 3: Calculate the number of total payment periods:

Payment periods = number of years x 12 months

Payment periods = 25 x 12

Payment periods = 300

Step 4: Apply the mortgage payment formula:

Monthly payment = mortgage principal x (1+ monthly interest rate)^number of payment periods)/(1+monthly interest rate)^number of payment periods -1)

400,000 x (1+ 0.00459)^300)/(1+0.00489)^300 - 1) = $2,301

Mortgage default insurance (sometimes known as CMHC insurance) protects lenders from mortgages that default. Mortgage default insurance is mandatory for all mortgages in Canada with down payments of less than 20% (high-ratio mortgages). This is an additional cost to you, and is calculated as a percentage of your total mortgage amount. For more information on mortgage default insurance rates, please read our guide to mortgage default insurance (CMHC insurance).

Depending on the size of your down payment, you will either be classified as a low-ratio borrower (meaning you’ve paid more than 20% down), or a high-ratio borrower (less than 20% down). There are different lending rules that will apply to you, depending on the type of borrower you are.

A high-ratio borrower is considered by a lender to pose higher risk of default, because they have put less cash equity up front into the home purchase, and are more leveraged with mortgage debt. The lender offsets this by requiring these borrowers to take out mortgage default insurance – also referred to as CMHC insurance – which is backed by government funds in case the borrower stops paying their mortgage. Because of this added security, lenders will usually offer lower rates for this group. As well, high-ratio borrowers are limited to an amortization period of 25 years. Learn more about CMHC insurance.

A low-ratio borrower, because they pose less risk of default, is not required to take out CMHC insurance, and can amortize their mortgage up to 35 years. However, lenders will often price rates for these borrowers slightly higher. The calculator takes this into account if you change the amortization length (and whether the mortgage is high- or low-ratio) in the input fields.

The calculator takes into account any land transfer tax rebates you will qualify for as a first-time home buyer, based on your location. For example, if you’re looking to purchase a home in Toronto, Ontario, you will qualify for a combined land transfer tax rebate ($4,475 at the municipal level and $4,000 at the provincial level) of $8,475. Simply select "Yes" in the “Are you a first-time home buyer?” field, and the rebate will be automatically calculated in your closing cost results.

Yes, the mortgage payment calculator will also total the closing costs you can expect to pay when finalizing your home purchase. Simply select the “Cash needed to close” tab to see the totals, including estimated lawyer fees, title insurance costs and appraisal fees, just to name a few.

Toronto, Ontario, is the only city in Canada to also charge a municipal land transfer tax (MLTT) in addition to LTT levied by the province. The MLTT charged by the City of Toronto ranges between 0.5% to 2.5% for homes priced between $55,000 to $2 million. On September 6, 2023, City Council approved an addition to the graduated MLTT threshold, expanding it to a range of 3.5% to 7.5% for homes priced between $3 million and $20 million. The additional MLTT range officially took effect on January 1, 2024.

Also read: Land transfer tax rates to rise for some Toronto buyers in January