Mortgage Payment Calculator Canada

In today’s ultra-competitive real estate market, knowledge is half of the battle. Our in-house mortgage calculator has been built to provide you with the ability to find out what you can afford in today’s market.

With only a few data points, our tool can guide or inspire discussions with a realtor, broker, your spouse and even let you know when you can get started on your real estate journey!

Mortgage payment calculator

Our mortgage calculator is designed to estimate the payment amount, amortization period and amortization schedule for the life of your mortgage. If you are purchasing a property, our calculator will allow you to plug and play with your numbers, such as down payment, amortization period and other factors.

As well, our calculator will enable you to compare both fixed-rate and variable-rate mortgages. Finally, based on your location, our calculator can further calculate other costs you might see at closing or on your total amount, such as default insurance premiums and the land transfer taxes.

How to use our mortgage payment calculator

As you will want the most accurate information, we suggest that you spend the time collecting the information you will need. This will ensure that you have an accurate number to estimate your costs, and you will be able to avoid some unpleasant surprises when you go to secure your mortgage. To utilize our mortgage tool, you will need the following information.

How to calculate mortgage payments

Mortgage calculators are a quick and easy method to calculate mortgage payments. As long as you enter the correct information, our calculator will provide you with an estimated monthly payment. Here is how our calculator works to determine your estimated monthly mortgage.

Determine your mortgage principal

The mortgage principal is the exact amount of the loan when first borrowed. For instance, if you are buying a $100,000 home and putting down a 10% down payment, your principal would be $90,000.

Calculate the monthly interest rate

Using the principal and other data that you entered, our site will do the math to determine your monthly interest rate on the mortgage. For instance, if you secure an annual 4% interest rate, your monthly interest rate would be 0.33% per month.

Calculate the payments that will be made

This depends on your amortization period and the frequency with which you are paying. For example, a 30-year mortgage loan that is paid monthly would require 360 payments.

Determine if you have any additional costs

Depending on your down payment amount and other factors, our calculator will look at and add any additional costs. This will include land transfer costs, taxes, or insurances, such as CMHC insurance.

Deliver your final numbers

Using the data you provided, our mortgage calculator will provide you with estimated mortgage options. These are meant as a guide and may be higher or lower depending on several factors and the lender you end up using to secure your mortgage.

How to lower your mortgage payments

With the current record-low rates, and more first-time homebuyers entering the market, the question about how to lower payments always comes up. So, here are a few ways that you could reduce your payments on your current home.

Extend your mortgage term

One of the easiest ways to lower your mortgage payments is to extend the number of years that it will take to pay your mortgage. This could mean that you extend your 20-year mortgage to 30 years. However, this move does not come without a cost, as additional years on your mortgage will mean you will acquire additional interest paid on the total principal loan.

Refinance your mortgage

With the record low-interest rates, many borrowers are looking to refinance their loan to secure a lower interest rate and save. The lower total allows borrowers to spend less on their monthly mortgage and save hundreds, if not thousands over their term. A drop of even 1% on your interest rate over 5 years will make a significant difference, so it is certainly worth looking into if you already have a mortgage.

Make a larger down payment

If you can, a larger down payment can undoubtedly make your mortgage payments significantly lower. For instance, a new home buyer using CMHC insurance will be paying a significant amount more than someone who can put down 20% and save on paying CMHC premiums.

Rent out part of your home

Whether you are looking to take advantage of the lack of long-term renting options or have a friend looking for a place, renting out your home can subsidize your mortgage payment with ease. Let’s say your mortgage is $2000 per month, a single room rental of $500 can help drop your mortgage costs and let you save.


Over the years, our team has had hundreds of questions on our in-house mortgage instrument. Here are some of the most popular questions we have seen and the answers we have always given!

Is your mortgage payment calculator free?

Yes! Our in-house mortgage calculator is always free and will provide you with the information to guide you on your real estate journey. All of our tools are open to all Canadians and will always be free.

Why use a mortgage payment calculator?

No matter if you are a first-time buyer looking for additional information or only looking to see what your next house may cost with current rates, mortgage calculators can guide you throughout the process.

One of the main benefits of using a tool like a mortgage payment calculator is getting a starting point for a conversation with a real estate broker, realtor or even your spouse. The prospect of a mortgage can be daunting for many. It is a process that is foreign, much too complicated and nerve-wracking.

So, as a buyer, what can you do? One of the best places to start is going through an online mortgage calculator like ours. Our mortgage calculator is designed to give you an approximation of what you will be able to afford when it comes to real estate. It can let you know if you need a little more time to plan and save or are ready and willing to take that next step in your real estate journey. No matter how much you have saved, a mortgage calculator can give you much needed information to guide your decision making process.

Our calculator is even better if you have already reached out to a lender to secure a pre-approval. This is because you will use a current and exact interest rate instead of relying on advertised rates that someone without a pre-approval would have access to. This will give you the flexibility to play around with amortization period, down payment, and other factors to hone in on the ideal payment plus other expenses.

We should note, our calculator is meant to act as a guide. When you go into a branch or work with a mortgage broker, the exact mortgage you will secure will look a little different from our calculated amount. The reason for this is simple. Banks and other lenders have strict protocols on what they look at for risk in potential clients. For instance, some lenders will look at Beacon score, type of property you want to buy, your type of employment, your income and your credit history. Naturally, the rule that we often see is the lower the risk, the better the rate, but specifics matter.

How do payments differ by province in Canada?

Mortgage rules in Canada are generally national. These rules include a minimum down payment of 5% on any property and a maximum amortization period of 30 years. However, specific provinces do have some particular fees and taxes that apply to mortgages.

British Columbia has a land transfer tax and a land transfer rebate that is available.

Alberta has no additional fees or taxes.

Saskatchewan has a land transfer tax.

Manitoba has a land transfer tax.

Ontario has a land transfer tax and a land transfer rebate that is available.

All four Atlantic provinces (New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador) all have a land transfer tax.

What is CMHC insurance?

CMHC is a national program that protects lenders from mortgages that default. In most countries and institutions, this kind of insurance is called default insurance.  In Canada, CMHC insurance is mandatory on any mortgage with a down payment of less than 20% of the purchase’s total cost. CMHC insurance is an additional cost to the borrower and is calculated as a percentage of the total mortgage amount that was borrowed.

It should be noted that CMHC is limited in its usage. If a home costs less than $500,000, a minimum down payment of 5% is necessary. Suppose a home costs between $500,000 and $1,000,000; you need a minimum down payment of 5% on the first $500,000 and a 10% down payment on the remaining amount. Homes over $1,000,000 do not qualify for CMHC insurance.  To find out more about CMHC insurance and how it is calculated, check out the CMHC site here.

What is an amortization schedule?

The amortization schedule, is the schedule of payments throughout the amortization period and will break down the payment portion that is paying down your principal vs interest paid. This breakdown will help you realize that although a 30-year mortgage is cheaper, your interest costs are high, and thus a 25 years or 20-year mortgage might be perfect for you to save for your future.

Most amortization schedules will show borrowers the schedule over the mortgage term. For instance, if you secure a five-year fixed mortgage, your amortization schedule will show your payments over those five years and your mortgage’s balance at the end of the term that will be paid off at the end of the amortization period.

What payment options do I have over the amortization period?

When it comes to mortgage options, you can set-up the payment frequency that works for you. The standard in the industry is by month. The amount will come out of an account every month on the day that was agreed upon.

You can also set-up accelerated payments where you end up paying a little more during the mortgage term. For instance, an accelerated bi-weekly payment plan adds two extra payments per year. This method will speed up the time it takes for your mortgage to be paid off and save you from unnecessary interest paid over the amortization period. You can also look at weekly payments and even bi-monthly payments. The specifics for your payment frequency will be up to your lender and the terms of your loan, but you can generally adjust payment frequency in the first 60 days or for a fee after those initial 60 days.

Fixed vs variable interest rate and CMHC rate

A fixed rate is set and agreed upon signing a mortgage with a lender. Usually, fixed rates come in 1, 3, or 5 year fixed agreements, and the benefit is that they do not change, no matter the market. For instance, with the current record-low rates, lenders have seen an increase in 5 year fixed mortgage rates as borrowers foresee an increase in the rate within that timeframe. On the other side, variable rate mortgages move with the current Bank of Canada interest rates plus the bank’s percentage. This type of mortgage is often secured by people who think the rates will continue to drop and do not want to lock themselves in for the long-term such as 5 year fixed term.

Finally, borrowers that are using CMHC typically secure a lower rate than those without on loans of 25 years. This is because the government guarantees regular payment on the mortgage, and thus your risk is lower. However, the CMHC premiums are significant, and borrowers who can put down 20% are often better off long-term during their 25 years with a lower overall payment and are able to save more money over the total term.  You can find out more about CHMC premiums here.

What other costs should I expect?

Land Transfer Tax: Depending on your province, you may have to pay land transfer tax on the purchase price. In Ontario, for instance, the land transfer tax is marginal and as follows:

Purchase Price

Up to $55,000

$55,000.01 to $250,000

$250,000.01 to $400,000

$400,000.01 to $2,000,000


Marginal Tax Rate






Lawyer Fees: Real estate lawyers have a significant amount of work to complete in a real estate deal. Looking up deeds, transferring deeds, title insurance, ensuring you have all the right paperwork and working with the seller’s lawyer to transfer both your deposit and the full sum in coordination with your lender.

Home inspection fee: Depending on if this was a condition or not, a home inspection is always a good idea to get an idea of how the home is physically. Inspections are typically $400 +

Appraisal fee: Depending on the lender, you may need to have your home appraised before the loan is secured. This is due to the nature of the purchase price vs mortgage amount. Appraisal fees are typically $150+

Deposit: Most real estate transactions include a deposit that is part of your down payment. It can be anywhere from $1,000 to $20,000 +.  Typically, this is done by cheque, dropped off at the seller agents real estate office, and is cashed only once the sale agreement is complete.

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