About Mortgage Calculator
Estimate your monthly mortgage payment with taxes, insurance, and PMI. View a full amortization schedule and compare monthly vs bi-weekly payments. Free tool.
How to use
- Enter the total home purchase price and specify your down payment as a dollar amount or percentage. In Canada, the minimum down payment is 5% for homes under $500,000. For homes above $500,000, you need 10% on the portion over that threshold. If your down payment is less than 20%, mortgage default insurance (CMHC) will be added automatically.
- Set your mortgage interest rate based on current market rates or a pre-approval quote from your lender. As of 2025, Canadian fixed rates typically range from 4.5% to 6.5% for a 5-year term, while variable rates track the Bank of Canada overnight rate plus a spread.
- Choose your amortization period and payment frequency. Canadian mortgages allow up to 25 years for insured mortgages or 30 years for uninsured. Select monthly, bi-weekly, or accelerated bi-weekly payments to see how each option affects your total interest cost.
- Add your estimated annual property taxes and home insurance premiums to see your complete monthly housing cost. Property taxes vary significantly by municipality — Toronto averages about 0.6% of assessed value, while cities like Winnipeg can exceed 2.5%.
- Review the full amortization schedule showing exactly how each payment splits between principal and interest. In the early years, most of your payment goes toward interest — a $300,000 mortgage at 6% sends about $1,500 of your first $1,932 payment to interest alone.
- Compare monthly vs. bi-weekly vs. accelerated bi-weekly payment options side-by-side. Accelerated bi-weekly payments can save you over $30,000 in interest and cut 3-4 years off a 25-year mortgage without noticeably affecting your budget.
- Adjust the down payment slider to see how different amounts affect your monthly payment, CMHC insurance premium, and total cost of the mortgage over its full term.
Frequently asked questions
How much house can I afford on a $60,000 salary?
Using the common guideline of spending no more than 28-30% of gross income on housing, a $60,000 salary supports about $1,400-$1,500 per month for mortgage, taxes, and insurance combined. With a 5% down payment and a 5.5% interest rate over 25 years, that roughly translates to a $250,000-$300,000 home depending on your property tax rate and location. Canadian lenders also apply the federal stress test at the qualifying rate (contract rate plus 2%, or 5.25%, whichever is higher), which may reduce your maximum borrowing amount. Use our
Home Affordability Calculator for a more detailed estimate including GDS and TDS ratios.
What is the monthly payment on a $300,000 mortgage?
At 6% interest with a 25-year amortization, a $300,000 mortgage costs approximately $1,932 per month for principal and interest alone. Add typical property taxes ($250-$400/month depending on municipality) and home insurance ($100-$150/month), and your total monthly housing cost reaches $2,300-$2,500. At 5% interest, the same mortgage drops to about $1,745/month for P&I. The difference between 5% and 6% over 25 years totals roughly $56,000 in additional interest.
Is bi-weekly better than monthly mortgage payments?
Yes, and the math is straightforward. Bi-weekly payments divide your monthly payment in half and pay it every two weeks, resulting in 26 half-payments per year — equivalent to 13 full monthly payments instead of 12. That one extra payment per year goes entirely toward principal. On a $300,000 mortgage at 6% over 25 years, accelerated bi-weekly payments save approximately $34,000 in interest and pay off the mortgage about 3.5 years early. For a detailed analysis of extra payment scenarios, see our
Mortgage Payoff Calculator.
How much do I need for a down payment in Canada?
The minimum down payment in Canada depends on the purchase price. For homes priced at $500,000 or less, the minimum is 5%. For the portion between $500,001 and $1,499,999, the minimum is 10%. Homes priced at $1.5 million or above require a full 20% down payment. Any down payment under 20% requires CMHC mortgage default insurance, which adds a one-time premium of 2.8% to 4.0% of the mortgage amount. For example, on a $400,000 home with 5% down, the CMHC premium adds roughly $15,200 to your mortgage.
What is PMI and when can I remove it?
PMI (Private Mortgage Insurance) in the US protects the lender if you default, and is required when your down payment is less than 20%. US PMI costs 0.5% to 1.5% of the loan amount annually and can be removed once you reach 20% equity. In Canada, the equivalent is CMHC mortgage default insurance — a one-time premium (2.8%-4.0% of the mortgage) paid at closing or rolled into the loan. Unlike US PMI, Canadian mortgage insurance cannot be removed or refunded.
What is the mortgage stress test in Canada?
Since 2018, all Canadian mortgage applicants must qualify at the higher of their contract rate plus 2% or the Bank of Canada's qualifying rate (currently 5.25%). If your lender offers 4.5%, you must prove you can afford payments at 6.5%. The stress test reduces your maximum borrowing power by roughly 20% compared to qualifying at the actual contract rate. It applies to new purchases, renewals with a new lender, and refinances.
How does amortization affect total mortgage cost?
A $300,000 mortgage at 5.5% over 25 years costs approximately $220,000 in total interest with monthly payments of $1,832. The same mortgage over 30 years drops the monthly payment to $1,703 but increases total interest to about $313,000 — nearly $93,000 more. In Canada, insured mortgages are limited to 25-year amortizations, while conventional mortgages can extend to 30 years. Choosing the shortest amortization you can afford saves the most money.
Should I choose a fixed or variable mortgage rate?
Historically, Canadian variable-rate mortgages have cost less than fixed rates about 80% of the time over any 5-year period. Variable rates move with the Bank of Canada overnight rate, meaning your payments can change during your term. Fixed rates provide certainty for the full term (typically 5 years). Choose variable if you can absorb potential payment increases of $200-$400/month, and fixed if payment predictability matters more than potential savings.
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