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Mortgage payment calculator

Estimate payments, default insurance and stress-test ratios using Canadian rules. Fixed-rate interest is compounded semi-annually, as Canadian law requires for fixed-rate mortgages. Results are estimates, not a mortgage offer or approval.

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Enter the rate you were offered. Reference rates:

Qualification (optional)

Results

Monthly payment

$3,106.21

Paid off in 25.0 years · total interest $375,124

Mortgage amount

$556,740

Loan-to-value 90.0%

Minimum down payment
$35,000
Default insurance premium
$16,740 (3.10%, added to the mortgage)
Provincial sales tax on premium
$1,339 (paid in cash at closing)
Stress test qualifying rate
6.58%
Monthly payment at qualifying rate
$3,756.22
Gross debt service (GDS)
36.4% (guideline 39.0%)
Total debt service (TDS)
39.9% (guideline 44.0%)

At the qualifying rate, these ratios are within the illustrative GDS/TDS guidelines. Lenders set their own limits.

Monthly payment if the rate changes
RateMonthly paymentDifference
2.58%$2,516.24−$589.97
3.58%$2,803.20−$303.02
4.08%$2,952.76−$153.45
4.58%$3,106.21—
5.08%$3,263.43+$157.21
5.58%$3,424.26+$318.05
6.58%$3,756.22+$650.00

How this calculator works

  • Monthly rate for a fixed mortgage: i = (1 + j/2)1/6 − 1, where j is the annual rate.
  • Payment: M = P·i / (1 − (1 + i)−n). Accelerated payments are the monthly payment divided by 2 (bi-weekly) or 4 (weekly).
  • Minimum down payment: 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million, and 20% at $1.5 million or more.
  • Qualifying rate: the greater of your rate plus 2 percentage points or 5.25%.
  • GDS = (stress-tested principal and interest + property tax + heating + 50% of condo fees) ÷ gross monthly income. TDS adds other debt payments.
  • The default insurance premium uses CMHC's published rates by loan-to-value and is added to the mortgage; provincial sales tax on the premium (Ontario, Quebec, Saskatchewan) is paid in cash.

Frequently asked questions

Why does the payment differ from my lender's quote?

Lenders may round differently, add fees or optional insurance to the payment, or use a different payment date. This calculator shows principal and interest, plus the default insurance premium added to the mortgage.

Do I need mortgage default insurance?

Yes, if your down payment is less than 20% of the purchase price. The premium depends on your loan-to-value ratio and is usually added to the mortgage. Insured mortgages are only available on homes under $1.5 million.

What is the stress test?

Federally regulated lenders must check that you could afford payments at the greater of your contract rate plus 2 percentage points or 5.25%. The calculator shows your debt-service ratios at that qualifying rate.

Are bi-weekly payments cheaper?

Accelerated bi-weekly payments (half the monthly payment every two weeks) add up to one extra monthly payment a year, which shortens the amortization and reduces total interest.

Sources

Rules are summarized in our own words from official publications. Lenders apply their own criteria.