Mortgage payment calculator
See your payment on any schedule — monthly, bi-weekly or accelerated — with Canadian semi-annual compounding baked in.
Canadian fixed-rate mortgages compound interest semi-annually, not monthly — this calculator uses that convention. CMHC/default-insurance premiums are estimates and are added to the loan (not payable up front) for down payments between 5% and 19.99%.
Mortgage affordability calculator
How much can you borrow? We apply the same GDS/TDS ratios and stress test that Canadian lenders use.
Lenders cap Gross Debt Service (GDS) at ~39% and Total Debt Service (TDS) at ~44% of gross income, and you must qualify at the greater of your rate + 2% or 5.25% (the federal stress test). Property tax and heating are estimates you can adjust.
Down payment & CMHC insurance calculator
Find your minimum down payment under Canada's tiered rules, and what mortgage default insurance would cost.
Since Dec 15, 2024, insured mortgages are available on homes up to $1.5M and 30-year amortizations are allowed for first-time buyers and new builds. Minimum down payment is 5% on the first $500,000 and 10% on the portion from $500,000 to $1,499,999; homes at $1.5M+ need 20% and can't be insured.
Land transfer tax calculator
Closing costs vary a lot by province — and Toronto charges a second municipal tax. Estimate yours, including first-time buyer rebates.
Land transfer tax is paid to your province (and, in Toronto, the city) on closing. Alberta and Saskatchewan charge only small registration/title fees instead. Rebate amounts and thresholds are estimates for 2026 and can change — confirm with your lawyer.
Mortgage break penalty calculator
Thinking of breaking your mortgage early? Estimate the penalty — the greater of three months' interest or the interest rate differential (IRD).
Variable-rate mortgages almost always charge three months' interest. Fixed-rate penalties are the greater of three months' interest or the IRD, and big-bank IRD formulas (using posted rates) are often much higher than this simplified estimate. Always ask your lender for an exact payout quote.
Prepayment savings calculator
Putting extra on your mortgage? See how much interest you save and how many years you shave off.
Most Canadian mortgages allow annual lump-sum prepayments of 10–20% of the original balance plus a payment increase, penalty-free — check your specific prepayment privileges. Interest is modelled with semi-annual compounding.
How to use Loonwise's Canadian mortgage calculators
Whether you're buying your first home in Ontario, renewing in Alberta or refinancing a condo in BC, these six calculators cover every number a Canadian borrower needs. Below is a plain-language guide to the rules behind each one — no jargon, no sales pitch.
How Canadian mortgage payments actually work
Here's a detail that trips up anyone using an American calculator: by law, Canadian fixed-rate mortgages compound interest semi-annually, not monthly. That means a "5.00%" mortgage doesn't charge 5%/12 each month. The effective monthly rate is calculated as (1 + 5%/2)2/12 − 1, which works out slightly lower than the U.S. method. Our payment calculator uses the Canadian convention, so the number you see matches what your lender will quote.
Your amortization is the total time to pay the mortgage off — commonly 25 years, or up to 30 years if you're a first-time buyer or buying a new build. Your term is different: it's the length of your current contract (often 5 years), after which you renew. A longer amortization lowers each payment but costs far more interest overall.
Payment frequency and accelerated payments
Switching from monthly to accelerated bi-weekly is the single easiest way to save. You pay half your monthly amount every two weeks — but because there are 26 bi-weekly periods in a year, you end up making the equivalent of 13 monthly payments instead of 12. That one extra payment a year can cut roughly three to four years off a 25-year mortgage. Try it in the payment calculator by changing the frequency dropdown.
Minimum down payment rules in Canada (2026)
Canada uses a tiered minimum down payment based on purchase price:
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,001 to $1,499,999 | 5% of the first $500,000 + 10% of the rest |
| $1,500,000 or more | 20% (cannot be insured) |
As of December 15, 2024, the insured-mortgage cap rose to $1.5 million and 30-year amortizations became available to first-time buyers and buyers of newly built homes. Our down payment calculator applies these tiers automatically.
Mortgage default insurance (CMHC)
If your down payment is less than 20%, you'll need mortgage default insurance — from CMHC, Sagen or Canada Guaranty. It protects the lender, not you, but it's what lets you buy with as little as 5% down. The premium is a percentage of your mortgage and is usually added to the loan rather than paid up front:
| Down payment | Loan-to-value | Premium |
|---|---|---|
| 5% – 9.99% | 90.01% – 95% | 4.00% |
| 10% – 14.99% | 85.01% – 90% | 3.10% |
| 15% – 19.99% | 80.01% – 85% | 2.80% |
| 20% or more | 80% or less | None |
In Ontario, Quebec and Saskatchewan, provincial sales tax applies to the premium and must be paid at closing.
The mortgage stress test
Every federally regulated Canadian lender must qualify you at the greater of your contract rate plus 2% or 5.25%. So even if your actual rate is 4.79%, you must prove you could afford payments at 6.79%. This is why the affordability calculator above shows a lower maximum than a simple payment calculation would — it's showing what a lender will actually approve.
Lenders also apply two ratios: Gross Debt Service (GDS), your housing costs divided by gross income, capped near 39%; and Total Debt Service (TDS), all debt payments divided by income, capped near 44%.
Land transfer tax by province
Most provinces charge a one-time land transfer tax when you buy. It's one of the largest closing costs, and it varies widely:
- Ontario — marginal brackets from 0.5% to 2.5%; the City of Toronto adds a matching municipal tax, roughly doubling it. First-time buyers can claim up to $4,000 provincial (plus $4,475 in Toronto).
- British Columbia — 1% on the first $200,000, 2% up to $2M, 3% above, plus 2% more over $3M. First-time buyer exemptions apply below set thresholds.
- Alberta & Saskatchewan — no land transfer tax; only modest title and mortgage registration fees.
- Quebec — the "welcome tax" (droit de mutation), with municipal brackets that are higher in Montreal.
- Manitoba, Nova Scotia, New Brunswick — their own provincial scales.
Use the land transfer tax calculator above to estimate yours, including the first-time buyer rebate.
Fixed vs. variable — which should you pick?
A fixed rate locks your payment for the whole term: total predictability, but higher break penalties if you leave early. A variable rate moves with the Bank of Canada's overnight rate — potentially cheaper, with a much gentler three-months-interest penalty, but your payment (or the portion going to principal) can change. There's no universally right answer; it depends on your risk tolerance and whether you might move or refinance mid-term.
Popular Canadian mortgage questions
Lenders cap your housing costs at about 39% of gross income (GDS) and your total debts at about 44% (TDS), and you must qualify at the stress-test rate — the greater of your rate + 2% or 5.25%. The affordability calculator above applies all three to estimate your maximum home price.
5% on homes up to $500,000; 5% on the first $500,000 plus 10% on the portion up to $1,499,999; and 20% on homes of $1.5M or more (which can't be insured). Under 20% down requires mortgage default insurance.
Canadian fixed mortgages compound semi-annually rather than monthly, which produces a slightly lower effective rate. Our calculators use the Canadian formula, so the payment matches your lender's quote.
For variable rates, it's three months' interest. For fixed rates, it's the greater of three months' interest or the interest rate differential (IRD). Big banks often calculate IRD using posted rates, which can make it substantially larger — always get an exact quote from your lender.
If you can afford it, usually yes. Accelerated bi-weekly payments squeeze in one extra monthly payment per year, typically shaving three to four years and tens of thousands in interest off a 25-year mortgage. The payment calculator lets you compare frequencies.