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Mortgage Payment Calculator Canada

Do you want to know how much you'll be paying on your mortgage per month? Our calculator will test four different scenarios at once so you can see exactly how a different interest rate or larger down payment can affect what you need to pay.

Mortgage Payment Calculator

Purchase Price

Location
Amortization period
Mortgage rate
Mortgage type
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Down payment
Mortgage insurance
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Total Mortgage Required
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Total Mortgage Payment
Frequency
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Property Tax

Toronto(0.8528%)


Land Transfer Tax

Provincial

Municipal

Rebate

Land Transfer Tax


Mortgage Balance
Amortization period
Mortgage rate
Mortgage type
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Total Mortgage Payment
Frequency
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Down payment

Year Total Paid Interest Paid Principal Paid Balance
Take 5 minutes to start your pre-approval online.


How we calculate your monthly payments

We built this calculator to include everything you would have to pay monthly for your mortgage, including amortization, mortgage rate, your down payment, required mortgage default insurance, and even land transfer tax (including rebates where applicable). And since you can choose from the best mortgage rates available on our website, you’ll know exactly what your payments would be!

The Parts of your Mortgage

Mortgage terms can be confusing, especially if you’re a first-time homebuyer. However, it’s actually not the hard to understand what everything means.

Amortization period

The amortization period is how long it will take to pay off your mortgage in full. In Canada, the normal amortization period is 25 years. That means that every year you pay off 1/25th of your mortgage. Don’t confuse paying off your mortgage with building equity though.
Equity is the difference between what your home is worth and how much mortgage is remaining. In the earlier years of your mortgage, your payments go more towards interest than principal; while you pay the same amount ever year, you start building equity slowly.

Case Study

a

For this house, you would pay $1,460 monthly. In the first month, $810 would go to interest and $650 would go to the principal. You want to pay more towards the principal, the actual amount of money loaned, because that’s how you build equity. Because only $650 goes towards increasing your equity, your remaining mortgage balance after the first month is $299,350.

The First Year

Date

Interest Paid

Principal Paid

Mortgage Remaining

Jan, 2018

$810

$650

$299,350

Feb, 2018

$808

$652

$298,698

Mar, 2018

$806

$654

$298,044

Apr, 2018

$805

$656

$297,388

May, 2018

$803

$657

$296,731

Jun, 2018

$801

$659

$296,071

Jul, 2018

$799

$661

$295,410

Aug, 2018

$798

$663

$294,748

Sep, 2018

$796

$665

$294,083

Oct, 2018

$794

$666

$293,417

Nov, 2018

$792

$668

$292,749

Dec, 2018

$790

$670

$292,079

Total

$9,602

$7,921

$17,523

The Last Year

Date

Interest Paid

Principal Paid

Mortgage Remaining

Jan, 2042

$46

$1,414

$15,807

Feb, 2042

$43

$1,418

$14,389

Mar, 2042

$39

$1,422

$12,968

Apr, 2042

$35

$1,425

$11,542

May, 2042

$31

$1,429

$10,113

Jun, 2042

$27

$1,433

$8,680

Jul, 2042

$23

$1,437

$7,243

Aug, 2042

$20

$1,441

$5,802

Sep, 2042

$16

$1,445

$4,358

Oct, 2042

$12

$1,449

$2,909

Nov, 2042

$8

$1,453

$1,456

Dec, 2042

$4

$1,456

$0

Total

$304

$17,222

$17,526

Total Cost of Mortgage = $438,109

Longer amortization periods have lower monthly payments because you spread the same debt over a longer period of time. Shorter amortization periods have higher monthly payments but cost less overall, as there’s less time to accumulate interest.
Here’s what that same house would cost with different amortization lengths.

Amortization Period

Monthly Payment

Interest Paid

Total Cost

5 years

$5,423

$25,360

$325,360

10 years

$2,930

$51,621

$351,621

15 years

$2,107

$79,179

$379,179

20 years

$1,700

$108,016

$408,016

25 years

$1,460

$138,109

$438,109

30 years

$1,304

$169,430

$469,430

The maximum amortization period for CMHC-insured mortgages is 25 years. If you want to extend your amortization period longer to take advantage of lower monthly payments, you would have to pay at least 20% as your down payment.
These numbers are for illustrative purposes only. As interest rates change over time, these are not indicative of the true cost of a mortgage. Read about the difference between amortization and mortgage terms here.

Interest Rate

The interest rate is a percentage that a lender charges you for borrowing money. Because interest rates are always a percentage, the more money you borrow, the more you have to pay back.
Interest rates are always displayed as an annual interest rate, so it can be a bit confusing when you’re trying to calculate your monthly payments, as interest is charged monthly.
To calculate your monthly interest rate, simply take your annual interest rate and divide it by 12.

3.24% ÷ 12 = 0.27%

If you were charged 3.24% on a $300,000 per month, you would owe $9,720. Instead, you’re only charged 1/12th of that, or $810.

Down Payment

In Canada you must have a down payment of at least 5% of the purchase price of a home. There is no such thing as a “zero-money-down” mortgage. The larger your down payment, the smaller your mortgage will be. That means you spend more up front, but less over the lifetime of the mortgage.
Increasing your down payment also has the benefit of reducing the premium on mortgage default insurance (CMHC insurance). The premiums are as follows:

 

Premium

Down Payment as a Percentage of Purchase Price

5 – 9.99%

10 – 14.99%

15 – 19.99%

20%+

 

4%

 

3.1%

 

2.80%

 

0%

You can read more about CMHC insurance here.              

There are many ways you can increase your down payment. The most traditional way is simply to save more money, but that also takes the longest. A much faster way is to get a gift from a friend or family member, as gifts aren’t taxed. However, some lenders don’t like seeing large gifts used as down payments because it increases the applicant’s debt-to-income ratio – a gift does not necessarily mean they will continue to receive financial support. Finally, you could get a down payment loan – but beware the additional cost of interest!        

Land Transfer Tax

The land transfer tax is provincially regulated; each province has different rules for it. Alberta and Saskatchewan don’t have a land transfer tax, while Ontario, B.C., and P.E.I all offer tax rebates for first-time homebuyers. For our land transfer tax calculator, click here.

Land Transfer Tax by Province

Province

Land Transfer Tax

Land Transfer Tax Rebate

Alberta

a

British Columbia

a

a

Manitoba

b

New Brunswick

a

Newfoundland and Labrador

q

Nova Scotia

Ontario

a

Prince Edward Island

a

Quebec

Saskatchewan

 

Check out our other mortgage calculators here:

Land Transfer Tax Calculator CMHC Insurance Calculator Affordability Calculator
Sitemap Updated On November 18, 2018. Copyright 2018. All Rights Reserved. RateShop.ca

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