Plan Your Home Purchase
Mortgage Payment Calculator
Get a clear estimate of your potential monthly payments and other home buying costs.
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Our expert advisors can help you find the best mortgage rates and options available for your situation.
Understanding Your Mortgage
Everything you need to know about mortgage calculations
Understanding Your Estimates
Mortgage Insurance
If your down payment is less than 20% of the home price, an estimated mortgage insurance premium is included in your loan for a more accurate payment.
Property Purchase Taxes
We estimate potential provincial and (if applicable) city property purchase taxes. First-Time Buyer options can reduce these.
Other Closing Costs
A general estimate for other costs (like legal fees, around 1% of home price) is also included.
Annual Costs
Property taxes (est. 0.80% of price/year) and home insurance (est. 0.30% of price/year) are ongoing expenses shown as monthly estimates in the breakdown.
Remember: These figures are estimates to help you plan. Actual costs can vary. For exact figures, please consult with mortgage, legal, and insurance professionals.
What is a mortgage calculator?
A mortgage calculator helps estimate your monthly payments for a home loan. It considers factors like home price, down payment, interest rate, and loan length (amortization) to give you an idea of costs.
How much down payment do I need in Ontario?
In Ontario, you need a minimum of 5% down for homes up to $500,000. For homes over $500,000, you need 5% on the first $500,000 and 10% on the remaining amount. A 20% down payment helps you avoid mortgage insurance.
What is mortgage insurance (CMHC)?
Mortgage insurance (CMHC, Sagen, or Canada Guaranty) protects the lender if you default on your loan. It's required when your down payment is less than 20% of the home price. The premium is typically added to your mortgage amount.
What are land transfer taxes in Ontario?
Ontario charges land transfer tax on all home purchases, calculated as a percentage of the purchase price. Toronto has an additional municipal land transfer tax. First-time buyers may qualify for rebates up to $4,000 provincially and $4,475 in Toronto.
Fixed vs variable mortgage rate - which is better?
Fixed rates stay the same for your term (typically 5 years), providing payment stability. Variable rates fluctuate with the prime rate and may offer lower initial rates but can increase. Your choice depends on your risk tolerance and market conditions.
Can I get a mortgage if I'm self-employed?
Yes! Self-employed individuals can get mortgages but typically need to provide 2 years of tax returns and financial statements. Some lenders specialize in self-employed mortgages and may have different qualification requirements.
What is the mortgage stress test in Canada?
The mortgage stress test ensures you can afford payments at a higher interest rate. You must qualify at either your contract rate plus 2% or 5.25% (whichever is higher). This protects you from payment shock if rates increase.
Important Note
The figures and breakdowns provided by this calculator are estimates intended for general guidance only. They may not reflect all possible costs or the most current market rates, and should not be considered financial advice.
For an accurate and comprehensive assessment of your mortgage options and associated costs, we strongly recommend consulting with a qualified mortgage professional or real estate agent.