Mortgage Payment Calculator
This calculator provides estimates only and does not constitute financial or mortgage advice. Mortgage payments use Canadian semi-annual compounding as required by the Interest Act. CMHC insurance premiums follow published rates and are added to the mortgage principal. The minimum income estimate uses the stress test rate (contract + 2% or 5.25%, whichever is higher) and a 39% GDS ratio. It does not account for existing debts, credit score, or lender-specific criteria. Actual rates, payments, and eligibility are subject to lender approval. Consult a licensed mortgage professional for personalized advice.
Understanding Your Mortgage
Everything you need to know about mortgage calculations
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.
Frequently Asked Questions
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.
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.
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.
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 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.
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.
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.