Mortgage Calculator Canada Online (Easy to Use)

Our mortgage calculator uses standard Canadian mortgage formulas to estimate your monthly payments based on the home price, down payment amount, interest rate, loan term, and amortization period you enter. It calculates both principal and interest portions of each payment and can show you the total interest paid over the life of the loan.

In Canada, the minimum down payment depends on the home’s purchase price: 5% for the first $500,000, 10% for the portion between $500,000 and $1 million, and 20% for amounts above $1 million. For homes over $1 million, the minimum down payment is 20% of the purchase price.

Canadian mortgage rates are influenced by the Bank of Canada’s overnight rate, bond yields, lender competition, and your personal financial situation (credit score, income, debt ratios). Fixed rates are typically tied to government bond yields, while variable rates move with the lender’s prime rate.

The amortization period is the total time needed to pay off the entire mortgage (typically 25-30 years in Canada). The mortgage term is the length of your current contract with the lender (usually 1-5 years), after which you’ll need to renew your mortgage at current rates and terms.

The mortgage stress test requires borrowers to qualify at either the Bank of Canada’s qualifying rate (currently 5.25%) or their contract rate plus 2%, whichever is higher. This ensures you can afford payments if interest rates rise. Our calculator can help you understand how different rates affect your affordability.

Fixed rates offer payment stability but are typically higher than variable rates. Variable rates may save you money if rates stay stable or fall, but payments could increase if rates rise. Use our calculator to compare different rate scenarios and see how they affect your payments.

Canadian lenders typically offer monthly, bi-weekly, or weekly payment options. Bi-weekly payments can help you pay off your mortgage faster and save on interest. Our calculator lets you compare different payment frequencies to see how they affect your amortization.

Beyond your mortgage payments, consider property taxes, home insurance, maintenance costs, utilities, and (for high-ratio mortgages) CMHC insurance. Closing costs typically range from 1.5% to 4% of the purchase price and include legal fees, land transfer taxes, and title insurance.

Most Canadian mortgages allow some prepayment privileges (typically 10-20% of the original principal annually) without penalty. Some mortgages also allow increased payment amounts. Check your mortgage terms for specific prepayment options and any associated fees.

Our calculator provides highly accurate estimates based on standard Canadian mortgage calculations. However, actual mortgage terms may vary based on your creditworthiness, the lender’s policies, and whether you choose to include property taxes and insurance in your payments. For precise figures, consult with a mortgage professional.