Mortgage Payment Calculator Canada
Get a sense for your mortgage payments, the cash you'll need to close and the monthly carrying costs with Ratehub.ca’s mortgage payment calculator.
WATCH: How to take advantage of future lower rates
Frequently Asked Questions
How do I use the mortgage payment calculator?
To use the calculator, enter the purchase price, select an amortization period, and choose a mortgage rate. By default, the calculator shows the best rates available in your province, but you can also enter a custom rate. It will then display your estimated mortgage payments.
The calculator automatically shows four different monthly payments based on various down payment amounts and includes the cost of mortgage default insurance. You can adjust your down payment and payment frequency to see how they affect your regular payments.
It also calculates land transfer tax, estimates how much cash you’ll need for closing costs, and projects total monthly expenses. You can see how your payments might change if interest rates rise and view your outstanding balance 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.
To use the calculator effectively, you’ll need:
- 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
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.
Why does the down payment automatically change on the calculator?
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.
How much is the mortgage payment of $500,000 for 30 years?
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 available if you put down at least 20%, or if you have less than 20% but qualify as a first-time homebuyer or are purchasing a newly built home.
Assuming you qualify for a 30-year amortization, 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
What is an amortization schedule?
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.
Are mortgage payments due every month?
Monthly mortgage payments are the most common arrangement, but many lenders offer more flexible options. Depending on your mortgage product, you could switch to weekly, bi-weekly, or accelerated bi-weekly payments. These can help you pay off your mortgage faster and reduce the total amount of interest you’ll pay. Some lenders also allow occasional lump sum payments, which can further lower your principal balance and shorten your amortization period.
Learn more about your mortgage payment options.
How do I calculate monthly payments on a mortgage?
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 4.04%, 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 4.04% rate and divide by 12 to determine your monthly interest rate.
Monthly interest rate = annual interest (%) / 100 / 12 months
Monthly interest rate = 4.04 / 100 / 12
Monthly interest rate = 0.00336
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+ 0.00336)^300)/(1+0.00336)^300 - 1) = $2,201
Does the calculator factor in land transfer tax rebates
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.
Are closing costs included in my mortgage payment result?
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.
Why does the Land Transfer Tax output change when I select Toronto, Ontario, as my purchase location?
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
Find the right calculators for all your mortgage and home buying needs
WATCH: December 11, 2024 Bank of Canada announcement
December 2024: Mortgage market update
This has been a relatively slow year thus far for the Canadian housing market, with buyers hunkered down and waiting for lower mortgage rates. With the Bank of Canada having implemented its fifth policy rate cut in a row (after not having one since March 2020), taking the target for the overnight rate from 3.75% to 3.25%, home sales have started rebounding.
Variable mortgage rates also fell in line with the policy rate. With more rate cuts expected in 2025, further downward pressure on mortgage rates is anticipated. Fixed mortgage rates are tied to the bond market, and bond yields dropped in the wake of the Bank’s fifth rate cut of 2024. As a result, some lenders have reduced their fixed mortgage rates.
Still, though, from a historical perspective, both fixed and variable mortgage rates continue to be elevated. If you’re looking for a mortgage rate in Canada, read on for some key information.
- Real estate update: On December 16, 2024, the Canadian Real Estate Association (CREA) released its latest housing market statistics, revealing a substantial rebound in real estate activity for November 2024. Lower interest rates drove a surge in demand, as national home sales jumped 26% year-over-year to 37,855 transactions, marking the third consecutive month of rising sales. The national average home price climbed 7.4% year-over-year to $649,411, while the National Composite MLS Home Price Index (HPI) increased 0.6% month-over-month — the largest monthly gain since mid-2023. New listings edged up by 2.4% annually but declined 0.5% compared to October, further tightening supply. Inventory levels fell to 3.7 months, their lowest point in 14 months, as rising sales outpaced new listings. The sales-to-new-listings ratio (SNLR) climbed to 59.2%, nearing the seller’s market territory. CREA defines a balanced market as having an SNLR between 45% and 65%. “November’s data highlights how lower borrowing costs and easing affordability pressures are bringing buyers back into the market,” said James Mabey, CREA Chair. “This momentum, combined with recent policy changes, signals strong activity ahead for 2025.”
Read more: National home sales rise 26% in November -
CPI update: On December 17, 2024, Statistics Canada reported that the Consumer Price Index (CPI) eased to 1.9% in November, a slight decline from 2% in October. The drop reflects the ongoing impact of the Bank of Canada’s rate cuts, which have reduced the benchmark overnight rate to 3.25% in December from 5% earlier this year. Mortgage interest costs, a significant driver of inflation, grew by 13.2%, slowing from 14.7% in October. This helped bring overall shelter inflation down to 4.6%, though rent prices remained persistently high at 7.7% year-over-year. Grocery inflation continued to burden Canadians, rising 2.6%, a minor improvement from October’s 2.7%, but still reflecting a 19.6% jump since 2021. While headline inflation nears the Bank of Canada’s 2% target, core inflation measures, the CPI Trim and CPI Median, held steady at 2.7% and 2.6%. Analysts expect the Bank of Canada to proceed cautiously with smaller, gradual rate cuts in early 2025, balancing inflation control with external economic risks. For now, the BoC’s focus will remain on achieving price stability while supporting economic momentum into the new year.
Read more: Canadian CPI falls to 1.9% in November
Highlights from the Bank of Canada’s December 11, 2024 announcement
On December 11, 2024, the Bank of Canada (BoC) cut its Overnight Lending Rate by 0.50%, bringing it to 3.25%. This marks the fifth consecutive rate cut since June 2024, part of the bank’s broader effort to ease borrowing costs. The BoC’s rate-cut cycle, which has lowered the Overnight Lending Rate by 175 basis points since June, comes after aggressive rate hikes in 2022-2023 to combat inflation.
- A key driver of the decision was Canada’s GDP growth, which slowed to just 1% in the third quarter of 2024, underperforming the BoC's expectations. The unemployment rate also rose to 6.8% in November 2024, signaling a slower labor market recovery.
- The drop in the Prime rate to 5.45% will lead to lower payments for borrowers with variable-rate mortgages or home equity lines of credit (HELOCs). For adjustable-rate mortgage holders, this will mean reduced monthly payments. For fixed-payment variable mortgage holders, more of their payments will go toward the principal, reducing their overall loan balance faster.
- While the BoC’s rate cut does not directly affect fixed mortgage rates, the bond market has responded with 5-year bond yields dropping to 2.8%. This could lead to further discounts on fixed-rate mortgages in the coming days.
- Those with personal loans, car loans, or other variable-rate debts tied to the Prime rate will also benefit, as their rates will decrease, reducing monthly payments or enabling them to pay off debt faster.
Canadian mortgage reform update
On September 16, 2024, the federal government announced sweeping changes to mortgage qualification rules for first-time home buyers, as well as those purchasing newly-constructed homes.
As of December 15, 2024:
- 30-year amortizations are available for all first-time home buyers, regardless of whether they have an insured mortgage. These extended amortizations are also available for any purchase of new construction.
- The maximum purchase price for an insured mortgage (where less than 20% down is paid) is $1.5 million, from the previous $1 million.
These are some of the most impactful mortgage reforms announced since 2012, and are anticipated to increase first-time home buyers’ affordability and access to the housing market.
Learn more about these new mortgage rule changes in the video below.
WATCH: 2025 mortgage rule changes for homebuyers
Why use a mortgage payment calculator?
When planning to buy a home, it's easy to focus on the final purchase price or your mortgage amount. But actually, the most relevant number to you will be your regular repayment. After all, your mortgage payments are the amount that you'll need to take from your paycheque each month.
What is a mortgage payment?
Your mortgage payment is the amount of money you must pay every month to pay down, and ultimately pay off, your mortgage loan. Your mortgage payment covers both the principal (the actual amount of the loan) and the interest on the loan. It can also include mortgage default insurance, also sometimes known as CMHC insurance (required when your down payment is less than 20% of the cost of your home), property taxes and other fees. When you first begin making payments, more of it goes towards covering interest, but over time, more of your payment will eventually go to paying down your mortgage balance.
What are some factors that can affect your mortgage payments?
There are several key factors that can affect the size of your mortgage payments. Some of these include:
- Your home price: This dictates how much you will need to borrow.
- Your down payment: The more you are able to pay up front towards the purchase of your home, the smaller your required mortgage amount. In turn, the smaller your monthly mortgage payment will be.
- Your total mortgage amount: This is the price of your new home, less the down payment, plus mortgage insurance, if applicable.
- Your interest rate: The lower the interest rate on your mortgage, the lower your monthly payments will be. Ratehub.ca can help you find the best mortgage rates available today to keep your payment as low as possible. When choosing between a variable or fixed mortgage rate, generally speaking, variable rates provide lower mortgage payments as they tend to be lower. According to a landmark 2001 study, historically, over 90% of Canadians who have maintained a variable mortgage rate throughout their entire mortgage term have paid less in interest than those who have stuck to a fixed rate. However, if you seek stability throughout your mortgage term, a fixed rate may be more suitable for you.
- Your amortization period: Your amortization period is the length of time it takes to pay off your entire mortgage. The longer your amortization period is, the lower your monthly mortgage payments will be. That said, since it will take you a longer time to pay off your mortgage, you will end up paying more in interest.
How do I get approved for a mortgage?
When thinking about your monthly mortgage payments, it’s also important to consider what you’ll need in order to get approved for a mortgage. Here are some of the most important things that prospective lenders will want to see:
- A good credit score: You need a credit score of 680 or higher to qualify for the best mortgage rates that allow for the lowest monthly mortgage payments. To qualify for any mortgage at all, you’ll need a credit score of at least 560. Read more on how your credit score affects your ability to get approved for a mortgage.
- Proof of income: You’ll need to provide proof of income in the form of pay stubs and/or tax documents like your Notice of Assessment (NOA). If you recently started a new job, even with proof of income, many lenders will want to see that you’ve held the position for at least a year.
- Ability to pass a mortgage stress test: You will need to pass a mortgage stress test, which ensures that you can still afford your mortgage payments at a rate known as the “qualifying rate”, set by the Office of the Superintendent of Financial Institutions (OSFI), or your contract rate + 2%, whichever is the higher of the two.
- Down payment: The size of your down payment affects the house you can afford as well as the size of your mortgage and associated monthly payments. As well, it affects whether you will need to purchase mortgage default insurance, which is required if your down payment is less than 20% of the value of the home you are purchasing. The minimum down payment you’ll need to have depends on the home you’re looking to buy:
Purchase Price |
Minimum Down Payment |
Less than $500,000 |
5% |
$500,000 - $1,499,999 |
5% of the first $500,000 and 10% of any amount over the first $500,000 |
$1,500,000 or more |
20% |
Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.
How to lower your mortgage payments
There are a few ways to lower your monthly mortgage payments. You can reduce the purchase price, make a bigger down payment, extend the amortization period or find a lower mortgage rate. Use the calculator to see what your payment would be in different scenarios.
Keep in mind that if your down payment is less than 20%, your maximum amortization period is 25 years. As for finding a lower mortgage rate, it’s always a good idea to speak to a mortgage broker for assistance.
How can you pay off your mortgage faster?
If you are able to pay your mortgage off faster, it can save you thousands of dollars in interest. However, any of the methods required to pay off your mortgage faster will result in larger monthly payments on your part, albeit for a shorter period of time. Be aware that some lenders may include pre-payment penalties with your mortgage, so it’s important to understand the fine print. That said, some of the ways you can pay off your mortgage more quickly include:
- Accelerate your mortgage payment schedule: Switch to a more frequent payment plan. For example, if you were making payments on a monthly basis, you may want to consider paying on a bi-weekly basis.
- Increase the amount of your mortgage payments: Any increase in the amount you are paying towards your mortgage on a monthly basis will speed up the time it takes to pay off your mortgage.
- Make a lump sum payment: If you receive a lump sum such as a tax refund, inheritance, a bonus, etc., and you can afford it, apply that lump sum towards your mortgage payments.
More mortgage calculators
For further information, check out these helpful pages!
- Best Mortgage Rates in Canada
- Variable or Fixed Mortgage Rates
- Amortization
- Mortgage Default Insurance (CMHC Insurance)
- Open vs. Closed Mortgage: What's the Difference?
- Mortgage Terms Glossary
- Mortgages