Mortgage Calculator
Sometimes getting a mortgage is necessary in order to buy a house, but figuring out how much you can actually afford can be difficult.
A mortgage calculator is a tool used by buyers to calculate their monthly payments to the lender. This will depend on the purchase price, interest rate, down payment, and other monthly homeowner fees.
Mortgage Payment
The sum of money you must pay each month toward your mortgage loan to make progress toward paying it off completely is known as your mortgage payment. The principal and interest are both paid off with each monthly mortgage payment.
Additionally, it could also include other costs like property taxes and mortgage default insurance, also referred to as CMHC insurance, and necessary when the down payment on a home is less than 20%.
Over time, more of your payment will eventually go toward reducing the balance of your mortgage; initially, more of it will go toward paying off interest.
Types of Mortgages
Mortgages come in a variety of forms depending on your requirements, financial status, property type, and intended usage Examples of mortgage products that combine different mortgage types are closed high-ratio mortgages and open conventional mortgages.
The most typical mortgage kinds in Canada are listed below:
Conventional mortgage
The most prevalent kind of mortgage is a conventional mortgage. They represent over 64% of the mortgage industry and constitute the foundation of real estate lending.
When a borrower uses a traditional mortgage, they put at least 20% down. As a result, there was no need for any type of mortgage default insurance because the lender did not have to finance more than 80% of the property’s purchase price.
High-ratio mortgage
A low down payment indicates a high ratio mortgage, according to the definition. So, more than 80% of the cost of the property had to be financed by the lender.
For properties under $1 million, Canada’s minimum down payment is 5%. Any mortgage loan with a less than 20% down payment is referred to as a “high ratio.”
Mortgage default insurance is legally needed for high-ratio loans, and the Canadian Mortgage and Housing Corporation frequently provides this insurance.
Closed Mortgage
A closed mortgage is a set of conditions and constraints put on your loan agreement for a predetermined amount of time. Closed mortgage periods can be as short as a few months or as long as a few years, but five years is the most typical.
There is a pre-payment penalty if you sell your house or pay off your mortgage before the term is over. There are limitations on how much more money you can put toward your mortgage and at what times to accelerate its repayment.
In Canada, a large number of closed mortgages are transferable, allowing you to sell the property before the term is complete. After that, they also transfer the remaining balance to a new home without incurring a penalty for early repayment.

Open Mortgage
There are no limitations on early payments with an open mortgage. There are no pre-payment penalties, so you are free to sell the home, pay off the mortgage in full, or make as many quick payments as you like.
Open mortgages are relatively unpopular because their interest rates are frequently much higher.
However, there is more latitude for you to make faster payments, fully pay off your mortgage, or sell the house without paying any penalties. There are open mortgage terms that are only valid for a year.
Factors that can affect your mortgage payment
The size of your mortgage payments can vary depending on a number of important criteria. Some of these factors include the following:
Price of your house
This determines how much money you will have to borrow.
Your down payment
Long-term debt will be reduced the more money you can put down as a down payment on a property. Consequently, your monthly mortgage payment will be lower. As a result, you will pay less toward your mortgage each month.
The total amount owed on your mortgage
This price includes the purchase price of your new house, less any required mortgage insurance, and the down payment.
Your interest rate
Your monthly payment decreases as your interest rate decreases. Variable mortgage rates typically result in cheaper monthly mortgage payments because they are typically lower when compared to fixed mortgage rates.
A significant 2001 study found that historically, over 90% of Canadians who kept their mortgage rate variable for the duration of the loan paid less in interest than those who persisted with a fixed rate.
A fixed rate, however, might be ideal for you if you want stability for the duration of your mortgage.
Amortization period
The period required to fully pay off your mortgage is known as the amortization term. Your mortgage payments will be less each month the longer your amortization time is.
The longer it takes you to repay your mortgage, however, means that you will end up paying more in interest.
How to use the Mortgage Calculator
Enter the purchase amount first, followed by the amortization length and mortgage rate, to begin using the calculator.
You have the option to choose a different rate in addition to the best rates displayed by the calculator for your province. The calculator will now display the amount of your upcoming mortgage installments.
Depending on the amount of your down payment, the mortgage payment calculator will by default display four alternative monthly installments.
It will automatically determine how much CMHC insurance will cost. You can change the amount of your down payment and the frequency of your payments in order to check how they affect your regular payment.
The calculator also calculates your closing costs and the amount of applicable land transfer tax.
The calculator can also be used to calculate your monthly expenses in total, estimate what your payments would be in the event that mortgage rates increased, and display the evolution of your outstanding balance.
If you’re purchasing a brand-new home, it’s a great option to use the calculator to estimate your affordability before looking at real estate listings.
Use the “Renewal or Refinance” option to estimate projected mortgage payments without taking a down payment into account if you’re renewing or refinancing and are aware of the total mortgage balance.
How to Calculate Mortgage Payments
As it was said before, in case you are planning on creating an amortization table for your current loan, a mortgage calculation is regarded as the best tool to use. You may also find out your monthly payments with a mortgage calculator.
Check the following steps and utilize them to calculate your mortgage payments.
The price of the home
Put the entire cost of the house you want to buy on the left side of the screen to begin. So if you’re thinking about putting in an offer on a house, this calculator might help you figure out how much you can afford to put in.
Add the amount of your down payment
Include the expected down payment, which can be specified as a set amount or as a percentage of the purchase price.

Enter your interest rate
If you’ve already looked for a loan and obtained a variety of interest rates, enter one of those numbers into the interest rate box. You can start with the current average mortgage rate if you haven’t prequalified for a specific interest rate yet.
Select a loan term
Enter a loan term that doesn’t exceed 30 years to assist determine your monthly mortgage payment. The interest rate you choose here must match the average interest rate you selected above if you haven’t been approved for a loan term and interest rate.
Use the typical rate for a 15-year mortgage, for instance, if you opt for that length. You can examine your options using this section of the calculator if you’d rather strike a balance between low monthly payments and a short term.
Add fees for homeowners associations (HOAs), taxes, and insurance
Although it’s not required, this section of the calculator can help you get a better idea of your prospective monthly payments.
Enter details like the private mortgage insurance, monthly property tax, and HOA dues in the relevant areas.
If you can’t see the figures right in front of you, you may be able to discover some of these information via your real estate agent or the local property assessor’s website. These are the trusted areas where you can find the required details.
Check the details of your loan
Your payment breakdown will automatically fill on the right side of the calculator once you have entered all necessary information on the left side of the screen.
You may see both your projected payoff month and your monthly payments in this section of the calculator.
To find out how much of your yearly payments will be spent on principal and interest, navigate to the tab labeled “Amortization Schedule.” A breakdown of each monthly payment can be viewed by switching between the annual and monthly views.
How to Choose the Best Mortgage
A mortgage is likely to be your biggest long-term debt commitment if you’re like the majority of people. By picking the best mortgage, you may reduce your overall home-buying costs and put yourself in a position for success. You may find the best mortgage by using the following four tips:
Determine your financial capacity
Since buying a home is an expensive investment, you might be unsure about your financial capacity. Use a mortgage calculator to run several scenarios to determine what your ideal loan would entail.
Whatever loan amount you are approved for, have it at the back of your mind that you don’t have to take it out in full.
Compare the lengths of mortgage loans
Although the most common loan type is a 30-year fixed-rate mortgage, you don’t have to use one. Use a mortgage calculator to determine how different loan terms will affect your monthly payment, the amount of interest you’ll pay, and the overall cost of the house.
Despite the fact that a longer loan term results in lower monthly payments overall, you will pay more interest.
Pick the appropriate mortgage type
There are other types of mortgages than conventional loans, and the best one for you may depend on your circumstances. A VA loan, for instance, can be a smart choice if you have a military connection. Low credit score borrowers could benefit from FHA loans.
A jumbo loan is your best option if you require a mortgage that is larger than what is permitted by regular loan rules.
Shop around: Getting a mortgage is a significant financial commitment, so this is not the time to choose the first one that comes up. It is crucial to make your research before getting a mortgage, no matter the kind of mortgage you are seeking for.
You should keep in mind that even little fluctuations in interest rates can have a considerable impact on your monthly payment and the overall amount of interest you will incur.
Make sure you carefully experiment with various scenarios using a mortgage calculator to get the best deal for you. Additionally, evaluate at least four lenders to choose the one that offers the terms, options, and services that are most advantageous to you.
Importance of Mortgage Calculator
If you’re thinking about financing a home purchase, a mortgage calculator may be your most useful tool. This is due to what an effective mortgage calculator does:
Assist you in calculating your monthly mortgage payment
The potential size of your monthly payment is displayed via a mortgage calculator. The process of purchasing a property begins with this crucial first step.
Factors in other home costs
A good mortgage calculator will also include taxes, homeowners association dues, house insurance, and private mortgage insurance.
In addition to these, it also considers expenses other than principal and interest that are related to property ownership. You can determine the cost of a property that you can purchase by knowing these expenses.
Narrows your home search
Mortgage payment estimates are a smart place to start when narrowing down your search for a home. Instead of wasting time examining homes outside of your budget, you may focus on those that are within it.
Generally speaking, you should never purchase a house that is out of your price range. Of course, it’s also not a smart idea to pay too little for something if you know you’ll have to sell it and start over in a few years.
Enable you to test out various scenarios
The monthly payment, mortgage interest, and total cost of the loan can all be easily changed by adjusting one or more entries on a mortgage calculator. This is a simple method for determining your ideal loan.
Compare many loan types
With the help of a mortgage payment calculator, one can easily compare various loan options The total cost of the loan will be on the high side owing to interest even though the monthly payments on a 30-year fixed-rate mortgage are lower.
Although the installments on a 15-year loan are greater, you will pay less interest overall.
Mortgage Fees and Costs
The terminology can be intimidating if you are a Canadian looking for a mortgage for the first time. Additionally, it may be challenging to comprehend what you are paying for and why. When analyzing your mortgage costs and fees, keep the following in mind:
Principal
This is referred to as an amount of money contracted from a lender. As you make regular payments, the amount will decrease since a percentage of each payment will be applied to the debt.
Interest rate
Essentially, this is the fee the lender is charging you for the use of their funds. It may be constant or variable, and it is stated as a percentage.
Property taxes
This is essentially the charge the lender makes you pay for using their money. Everywhere you access property cards and other real estates documents, such as on the website of your recorder or assessor, you can often view this number.
Homeowners insurance
If your house is damaged, you and your lender must be covered by homeowner’s insurance. If you’re considering purchasing a home, inquire the real estate agent about the current cost of insurance. If not, speak with a local insurance agent to request a quote.
Mortgage insurance
This covers the lender in case you couldn’t continue your mortgage payments. Another name for it is private mortgage insurance (PMI). It normally ranges from 0.58% to 1.86% of your entire mortgage amount.
HOA fees
If you purchase a property in a communal setting, such as a condominium complex, homeowner association fees may be necessary.
Private companies called HOAs were formed to manage and maintain such areas. Although the fees may be little, they could make your monthly payments impossible to afford.

Inputs for the Mortgage Calculator
For first-time homeowners, the process of buying a house can be very worrisome. You might not fully comprehend all of the factors that affect your home payment and monthly budget.
The Mortgage Calculator’s inputs are each described in full below, along with their locations.
Property price
The ultimate selling price that the seller and the buyer have mutually agreed upon is the property price. The list price, which may be seen on the real estate listing, also known as the MLS listing, differs frequently from it.
Based on the worth of nearby homes of a similar size and the state of the market, the seller lists the property for a specified price. The buyer submits a bid for the property. The offer is either accepted, rejected or counteroffered by the seller.
If competing purchasers strive to outbid each other in a competitive real estate market, the property price may end up being greater than the advertised price.
The cost of the property may be on the lower side if there are issues with the residence. It may also be lower if the seller accepts the offer of the buyer that is less than the list price in a slow real estate market.
Down payment
A down payment of less than 5% of the purchase price cannot be entered into the mortgage calculator. This is because, for properties under $1 million, Canada’s minimum down payment is only 5%. Any down payment for a home that costs more than $1 million must be at least 20%.
A buyer’s initial outlay for a home purchase is called a down payment. The remaining purchase price that the down payment does not cover is financed with a mortgage loan.
You have the option of entering your down payment as a fixed dollar amount or as a percentage of the purchase price when using the mortgage calculator.
Mortgage default insurance, primarily provided by the CMHC, is needed on loans for buyers who pay a down payment of less than 20%.
What is the minimum down payment?
The buying price of the property will determine your minimum down payment.
- If your purchase price is under $500,000, you must make a down payment of at least 5% of the total purchase price.
- If your purchase price is around $500,000 and $999,999, you must pay a minimum down payment of 5% for the first $500,000 and 10% of the remaining sum.
- A 20% down payment is needed as a minimum for transactions costing $1,000,000 or more.
The down payment needed by your lender can be larger if you’re self-employed or have bad credit.
Amortization period
The length of time needed to completely pay off your mortgage is known as the amortization period. The period and current interest rate affect the amortization. As a result, it is only an estimation and could vary when your mortgage is renewed.
The longest possible amortization period for a Canadian conventional mortgage is 30 years when a buyer pays a minimum down payment of 20%.
When the buyer puts down less than 20%, the high-ratio mortgage’s maximum amortization is 25 years. For example, if a borrower inputs a down payment that is less than 20% in a mortgage calculator, the amortization period cannot be more than 25 years.
What amortization period should I choose?
Choosing an amortization duration for your mortgage should follow these general guidelines:
- The average mortgage in Canada has an amortization period of 25 years. A 25-year amortization works well in most situations unless you have cash flow issues and need a longer amortization term or you have the money to reduce it.
- Your mortgage main balance will be paid off more quickly if you select a shorter amortization. This will decrease the total cost of interest over time, but it will also increase your monthly or biweekly mortgage payment.
- Amortization periods longer than 25 years are not permitted for insured high-ratio mortgages. A minimum 20% down payment is required if you pick an amortization period longer than 25 years.
Interest rate
Lenders publish their mortgage interest rates in person and online. The price of contracting a loan from a lender is regarded as an interest rate.
It is incorporated into your mortgage payment and is figured as a percentage of your total loan amount. Your monthly mortgage payments are split between paying the lender a portion and paying the principal debt.
The amount of your down payment and the overall cost of borrowing over the course of your mortgage are both impacted by mortgage interest rates. You can either enter a fixed interest rate in the mortgage calculator or a variable interest rate:
- Fixed-rate: During the term of your mortgage, a fixed interest rate is constant. Up until the time of your mortgage’s renewal, nothing changes. Though it’s not always the case, fixed interest rates are always on the high side compared to variable interest rates.
- Variable rate: The market influences a variable interest rate. The prime rate plus or minus a particular percentage is how it is typically offered. The interest rate that banks employ when lending to one another is known as the prime rate. Your monthly interest payment fluctuates along with the prime rate. Variable interest rates are often less expensive than fixed interest rates, though this isn’t always the case.
- Hybrid interest: A hybrid mortgage, often known as hybrid interest, combines variable and fixed rates. You have some protection from interest rate increases because a portion of your mortgage’s interest rate is set. If interest rates fall, the other portion of your rate will benefit you somewhat. Hybrid mortgages frequently have extra terms and conditions. However, they can assist you in taking advantage of low-interest rates without running the danger of having your mortgage payments or amortization term significantly fluctuate.
Factors that determine interest rates
Everybody’s mortgage interest rates are different. Your lender will consider a number of variables when calculating the amount of your mortgage interest rate. The following, among others, may affect the interest rate on your mortgage:
- Mortgage interest types (either fixed or variable)
- Credit rating.
- Earnings
- Level of debt
- Employment Type (ie. if you are self-employed)
- Term of the mortgage (ie. open or closed)
What is the prime rate of interest?
The prime interest rate serves as a benchmark for financial institutions for determining their interest rates for the various loans they provide, including variable-rate mortgages and credit lines. From where does the prime rate originate?
Our central bank, the Bank of Canada, which is in charge of implementing monetary policy, sets an overnight rate that has a significant impact on it.
The interest rate that financial organizations employ while borrowing from and lending to one another is known as the overnight rate. The prime interest rate typically fluctuates within a few days of the overnight rate.
The prime rate is used as a benchmark by financial organizations when establishing interest rates for mortgages, credit lines, personal loans, and other loans.
If the interest rate on your mortgage is variable, you will be charged prime plus or minus the specified amount.
The mortgage interest rate that financial institutions publicly advertise is known as the posted rate. For example, if the prime rate is 1.50% and the advertised rate by the financial institution is 2.50%, you may be charged a total interest of 4.0%
Often, the discount rate for the six largest Canadian banks is less than the rate that is stated. Your mortgage interest rate might be 2.75% if the discount rate is 1.5% and the prime rate is 1.25%.
To give the impression that you are getting a great deal, the discount rate, which is lower than the quoted rate, is occasionally advertised next to the posted rate.
Make sure to ask the lender what their discount rate is if it is not listed or advertised. Always begin a negotiation with the discount rate in mind. You might end up saving tens of thousands of dollars on your mortgage.
Mortgage payment options
It should go without saying that you must repay any mortgage loans you obtain to purchase a home. But there are many different methods you may pay off your mortgage.
To fit your budget and paydays, lenders provide a variety of payment cycles. Let’s look at this:
- Monthly payments: The most typical kind of mortgage payment is this one. If a set monthly payment was agreed upon between you and the lender in the mortgage documents, you will always make the same payment on the same day. A year will include a total of 12 payments from you.
- Semi-monthly payments: If you opt for semi-monthly payments, that means you will make your payment twice a month, each month. By halving the monthly payment as a whole, it is calculated. In other words, if your monthly mortgage payment is $1,500 in full, you will make two payments of $750 each. Even though you are only paying half of the payment twice a month, you will still have to pay the same amount as 12 full monthly payments in a year.
- Bi-weekly payments: Payments made bi-weekly are comparable to those made semi-monthly. The difference is that you now pay half of your mortgage every 14 days rather than just twice a month as usual. Every two weeks, there are 26 payments.
In order to get the actual bi-weekly payment amount, your lender will divide the total of the 12 monthly payments you would have made in a year, multiplied by 26. Only this you can be able to determine your bi-weekly payment.
In other words, if your total monthly payment is $1,500, your lender will increase that by 12 months every year, which comes to $18,000.
The $18,000 will then be divided into 26 biweekly installments by your lender, resulting in a payment of $692.31. So this means you will continue to make a $692.31 mortgage payment every two weeks. You will pay out what would be equal to 12 full monthly payments per annum.
Bi-weekly accelerated payments
With one significant exception, biweekly accelerated payments are nearly comparable to normal biweekly payments. The calculations do not make them equal to 12 regular monthly payments.
As an alternative, your lender merely divides your monthly payment in half, with the remaining half being paid every 14 days.
In other words, your lender will divide your typical monthly mortgage payment of $1,500 into two, which comes to $750.00. You will make three biweekly payments in two months out of the year, for a total of two additional half payments.
When you pay your mortgage in expedited bi-weekly payments, you will have to pay 13 full monthly payments every year as compared to just 12. Accelerated biweekly payments can speed up the mortgage payoff process and save interest costs.
Property tax
Before you can determine the property tax rate, you simply need to multiply both the total estimated value of the property and the property tax rate together.
Between provinces and between municipalities, the mill rate varies. For instance, Toronto tax 0.5997%, Montreal tax 0.7672% and Vancouver tax 0.2468%.
Usually, the property’s real estate listing includes the annual property tax amount. If not, you can check your city’s website or contact city hall to get the annual property tax amount.
Home Insurance
Although it is not mandated by law, mortgage lenders in Canada require home insurance as a condition of your mortgage loan.
If something were to happen to the property that would result in considerable loss or damage, it would shield the lender from financial harm. In Canada, the average cost of homeowner’s insurance is around $1000 annually or $84 per month.
The majority of lenders demand that you have minimal insurance that covers things like fire, lightning, smoke damage, falling objects, hail, wind, frozen pipes, vandalism, etc.
By calling a provider directly, utilizing an online comparison tool, or getting in touch with a broker, you can obtain a free home insurance quotation.
Condo fees
Condo fees are typically listed in the “Condo and Maintenance Information” portion of a condo property’s real estate listing.
You can also speak with the real estate agent handling the listing you’re interested in or receive that information by getting in touch with the condo association. Condo fees are a recurring expense that you must make every month.
Mortgage payments are separate from condo fees each month. Instead of your mortgage lender, you pay them to the condo organization.
Regular upkeep of common areas, renovations, significant repairs, and some utilities are covered by condo fees. Condo fees are non-negotiable and must be paid by all condo owners.
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Purchase price ($50,000-$10,000,000)
Down Payment
Mortgage term (5 Year - 30 Year)
Interest Rate
Start Date
Advanced Mode
Property Taxes
Home Insurance (Max. $100,000)
PMI Insurance (Max. $100,000)
HOA Fee (Max. $100,000)
Other Costs (Max. $100,000)
Property Taxes Increases
Home Insurance Increases
HOA Increases
Other Costs Increases
Annual Payment (Max. $1,000)
Monthly Payment (Max. $1,000)
One Time Payment (Max. $1,000)
Simple Mode
Result
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Mortgage Calculator
Year | Principal | Interest | Payment | Balance |
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Sometimes getting a mortgage is necessary in order to buy a house, but figuring out how much you can actually afford can be difficult.
A mortgage calculator is a tool used by buyers to calculate their monthly payments to the lender. This will depend on the purchase price, interest rate, down payment, and other monthly homeowner fees.
Mortgage Payment
The sum of money you must pay each month toward your mortgage loan to make progress toward paying it off completely is known as your mortgage payment. The principal and interest are both paid off with each monthly mortgage payment.
Additionally, it could also include other costs like property taxes and mortgage default insurance, also referred to as CMHC insurance, and necessary when the down payment on a home is less than 20%.
Over time, more of your payment will eventually go toward reducing the balance of your mortgage; initially, more of it will go toward paying off interest.
Types of Mortgages
Mortgages come in a variety of forms depending on your requirements, financial status, property type, and intended usage Examples of mortgage products that combine different mortgage types are closed high-ratio mortgages and open conventional mortgages.
The most typical mortgage kinds in Canada are listed below:
Conventional mortgage
The most prevalent kind of mortgage is a conventional mortgage. They represent over 64% of the mortgage industry and constitute the foundation of real estate lending.
When a borrower uses a traditional mortgage, they put at least 20% down. As a result, there was no need for any type of mortgage default insurance because the lender did not have to finance more than 80% of the property’s purchase price.
High-ratio mortgage
A low down payment indicates a high ratio mortgage, according to the definition. So, more than 80% of the cost of the property had to be financed by the lender.
For properties under $1 million, Canada’s minimum down payment is 5%. Any mortgage loan with a less than 20% down payment is referred to as a “high ratio.”
Mortgage default insurance is legally needed for high-ratio loans, and the Canadian Mortgage and Housing Corporation frequently provides this insurance.
Closed Mortgage
A closed mortgage is a set of conditions and constraints put on your loan agreement for a predetermined amount of time. Closed mortgage periods can be as short as a few months or as long as a few years, but five years is the most typical.
There is a pre-payment penalty if you sell your house or pay off your mortgage before the term is over. There are limitations on how much more money you can put toward your mortgage and at what times to accelerate its repayment.
In Canada, a large number of closed mortgages are transferable, allowing you to sell the property before the term is complete. After that, they also transfer the remaining balance to a new home without incurring a penalty for early repayment.

Open Mortgage
There are no limitations on early payments with an open mortgage. There are no pre-payment penalties, so you are free to sell the home, pay off the mortgage in full, or make as many quick payments as you like.
Open mortgages are relatively unpopular because their interest rates are frequently much higher.
However, there is more latitude for you to make faster payments, fully pay off your mortgage, or sell the house without paying any penalties. There are open mortgage terms that are only valid for a year.
Factors that can affect your mortgage payment
The size of your mortgage payments can vary depending on a number of important criteria. Some of these factors include the following:
Price of your house
This determines how much money you will have to borrow.
Your down payment
Long-term debt will be reduced the more money you can put down as a down payment on a property. Consequently, your monthly mortgage payment will be lower. As a result, you will pay less toward your mortgage each month.
The total amount owed on your mortgage
This price includes the purchase price of your new house, less any required mortgage insurance, and the down payment.
Your interest rate
Your monthly payment decreases as your interest rate decreases. Variable mortgage rates typically result in cheaper monthly mortgage payments because they are typically lower when compared to fixed mortgage rates.
A significant 2001 study found that historically, over 90% of Canadians who kept their mortgage rate variable for the duration of the loan paid less in interest than those who persisted with a fixed rate.
A fixed rate, however, might be ideal for you if you want stability for the duration of your mortgage.
Amortization period
The period required to fully pay off your mortgage is known as the amortization term. Your mortgage payments will be less each month the longer your amortization time is.
The longer it takes you to repay your mortgage, however, means that you will end up paying more in interest.
How to use the Mortgage Calculator
Enter the purchase amount first, followed by the amortization length and mortgage rate, to begin using the calculator.
You have the option to choose a different rate in addition to the best rates displayed by the calculator for your province. The calculator will now display the amount of your upcoming mortgage installments.
Depending on the amount of your down payment, the mortgage payment calculator will by default display four alternative monthly installments.
It will automatically determine how much CMHC insurance will cost. You can change the amount of your down payment and the frequency of your payments in order to check how they affect your regular payment.
The calculator also calculates your closing costs and the amount of applicable land transfer tax.
The calculator can also be used to calculate your monthly expenses in total, estimate what your payments would be in the event that mortgage rates increased, and display the evolution of your outstanding balance.
If you’re purchasing a brand-new home, it’s a great option to use the calculator to estimate your affordability before looking at real estate listings.
Use the “Renewal or Refinance” option to estimate projected mortgage payments without taking a down payment into account if you’re renewing or refinancing and are aware of the total mortgage balance.
How to Calculate Mortgage Payments
As it was said before, in case you are planning on creating an amortization table for your current loan, a mortgage calculation is regarded as the best tool to use. You may also find out your monthly payments with a mortgage calculator.
Check the following steps and utilize them to calculate your mortgage payments.
The price of the home
Put the entire cost of the house you want to buy on the left side of the screen to begin. So if you’re thinking about putting in an offer on a house, this calculator might help you figure out how much you can afford to put in.
Add the amount of your down payment
Include the expected down payment, which can be specified as a set amount or as a percentage of the purchase price.

Enter your interest rate
If you’ve already looked for a loan and obtained a variety of interest rates, enter one of those numbers into the interest rate box. You can start with the current average mortgage rate if you haven’t prequalified for a specific interest rate yet.
Select a loan term
Enter a loan term that doesn’t exceed 30 years to assist determine your monthly mortgage payment. The interest rate you choose here must match the average interest rate you selected above if you haven’t been approved for a loan term and interest rate.
Use the typical rate for a 15-year mortgage, for instance, if you opt for that length. You can examine your options using this section of the calculator if you’d rather strike a balance between low monthly payments and a short term.
Add fees for homeowners associations (HOAs), taxes, and insurance
Although it’s not required, this section of the calculator can help you get a better idea of your prospective monthly payments.
Enter details like the private mortgage insurance, monthly property tax, and HOA dues in the relevant areas.
If you can’t see the figures right in front of you, you may be able to discover some of these information via your real estate agent or the local property assessor’s website. These are the trusted areas where you can find the required details.
Check the details of your loan
Your payment breakdown will automatically fill on the right side of the calculator once you have entered all necessary information on the left side of the screen.
You may see both your projected payoff month and your monthly payments in this section of the calculator.
To find out how much of your yearly payments will be spent on principal and interest, navigate to the tab labeled “Amortization Schedule.” A breakdown of each monthly payment can be viewed by switching between the annual and monthly views.
How to Choose the Best Mortgage
A mortgage is likely to be your biggest long-term debt commitment if you’re like the majority of people. By picking the best mortgage, you may reduce your overall home-buying costs and put yourself in a position for success. You may find the best mortgage by using the following four tips:
Determine your financial capacity
Since buying a home is an expensive investment, you might be unsure about your financial capacity. Use a mortgage calculator to run several scenarios to determine what your ideal loan would entail.
Whatever loan amount you are approved for, have it at the back of your mind that you don’t have to take it out in full.
Compare the lengths of mortgage loans
Although the most common loan type is a 30-year fixed-rate mortgage, you don’t have to use one. Use a mortgage calculator to determine how different loan terms will affect your monthly payment, the amount of interest you’ll pay, and the overall cost of the house.
Despite the fact that a longer loan term results in lower monthly payments overall, you will pay more interest.
Pick the appropriate mortgage type
There are other types of mortgages than conventional loans, and the best one for you may depend on your circumstances. A VA loan, for instance, can be a smart choice if you have a military connection. Low credit score borrowers could benefit from FHA loans.
A jumbo loan is your best option if you require a mortgage that is larger than what is permitted by regular loan rules.
Shop around: Getting a mortgage is a significant financial commitment, so this is not the time to choose the first one that comes up. It is crucial to make your research before getting a mortgage, no matter the kind of mortgage you are seeking for.
You should keep in mind that even little fluctuations in interest rates can have a considerable impact on your monthly payment and the overall amount of interest you will incur.
Make sure you carefully experiment with various scenarios using a mortgage calculator to get the best deal for you. Additionally, evaluate at least four lenders to choose the one that offers the terms, options, and services that are most advantageous to you.
Importance of Mortgage Calculator
If you’re thinking about financing a home purchase, a mortgage calculator may be your most useful tool. This is due to what an effective mortgage calculator does:
Assist you in calculating your monthly mortgage payment
The potential size of your monthly payment is displayed via a mortgage calculator. The process of purchasing a property begins with this crucial first step.
Factors in other home costs
A good mortgage calculator will also include taxes, homeowners association dues, house insurance, and private mortgage insurance.
In addition to these, it also considers expenses other than principal and interest that are related to property ownership. You can determine the cost of a property that you can purchase by knowing these expenses.
Narrows your home search
Mortgage payment estimates are a smart place to start when narrowing down your search for a home. Instead of wasting time examining homes outside of your budget, you may focus on those that are within it.
Generally speaking, you should never purchase a house that is out of your price range. Of course, it’s also not a smart idea to pay too little for something if you know you’ll have to sell it and start over in a few years.
Enable you to test out various scenarios
The monthly payment, mortgage interest, and total cost of the loan can all be easily changed by adjusting one or more entries on a mortgage calculator. This is a simple method for determining your ideal loan.
Compare many loan types
With the help of a mortgage payment calculator, one can easily compare various loan options The total cost of the loan will be on the high side owing to interest even though the monthly payments on a 30-year fixed-rate mortgage are lower.
Although the installments on a 15-year loan are greater, you will pay less interest overall.
Mortgage Fees and Costs
The terminology can be intimidating if you are a Canadian looking for a mortgage for the first time. Additionally, it may be challenging to comprehend what you are paying for and why. When analyzing your mortgage costs and fees, keep the following in mind:
Principal
This is referred to as an amount of money contracted from a lender. As you make regular payments, the amount will decrease since a percentage of each payment will be applied to the debt.
Interest rate
Essentially, this is the fee the lender is charging you for the use of their funds. It may be constant or variable, and it is stated as a percentage.
Property taxes
This is essentially the charge the lender makes you pay for using their money. Everywhere you access property cards and other real estates documents, such as on the website of your recorder or assessor, you can often view this number.
Homeowners insurance
If your house is damaged, you and your lender must be covered by homeowner’s insurance. If you’re considering purchasing a home, inquire the real estate agent about the current cost of insurance. If not, speak with a local insurance agent to request a quote.
Mortgage insurance
This covers the lender in case you couldn’t continue your mortgage payments. Another name for it is private mortgage insurance (PMI). It normally ranges from 0.58% to 1.86% of your entire mortgage amount.
HOA fees
If you purchase a property in a communal setting, such as a condominium complex, homeowner association fees may be necessary.
Private companies called HOAs were formed to manage and maintain such areas. Although the fees may be little, they could make your monthly payments impossible to afford.

Inputs for the Mortgage Calculator
For first-time homeowners, the process of buying a house can be very worrisome. You might not fully comprehend all of the factors that affect your home payment and monthly budget.
The Mortgage Calculator’s inputs are each described in full below, along with their locations.
Property price
The ultimate selling price that the seller and the buyer have mutually agreed upon is the property price. The list price, which may be seen on the real estate listing, also known as the MLS listing, differs frequently from it.
Based on the worth of nearby homes of a similar size and the state of the market, the seller lists the property for a specified price. The buyer submits a bid for the property. The offer is either accepted, rejected or counteroffered by the seller.
If competing purchasers strive to outbid each other in a competitive real estate market, the property price may end up being greater than the advertised price.
The cost of the property may be on the lower side if there are issues with the residence. It may also be lower if the seller accepts the offer of the buyer that is less than the list price in a slow real estate market.
Down payment
A down payment of less than 5% of the purchase price cannot be entered into the mortgage calculator. This is because, for properties under $1 million, Canada’s minimum down payment is only 5%. Any down payment for a home that costs more than $1 million must be at least 20%.
A buyer’s initial outlay for a home purchase is called a down payment. The remaining purchase price that the down payment does not cover is financed with a mortgage loan.
You have the option of entering your down payment as a fixed dollar amount or as a percentage of the purchase price when using the mortgage calculator.
Mortgage default insurance, primarily provided by the CMHC, is needed on loans for buyers who pay a down payment of less than 20%.
What is the minimum down payment?
The buying price of the property will determine your minimum down payment.
- If your purchase price is under $500,000, you must make a down payment of at least 5% of the total purchase price.
- If your purchase price is around $500,000 and $999,999, you must pay a minimum down payment of 5% for the first $500,000 and 10% of the remaining sum.
- A 20% down payment is needed as a minimum for transactions costing $1,000,000 or more.
The down payment needed by your lender can be larger if you’re self-employed or have bad credit.
Amortization period
The length of time needed to completely pay off your mortgage is known as the amortization period. The period and current interest rate affect the amortization. As a result, it is only an estimation and could vary when your mortgage is renewed.
The longest possible amortization period for a Canadian conventional mortgage is 30 years when a buyer pays a minimum down payment of 20%.
When the buyer puts down less than 20%, the high-ratio mortgage’s maximum amortization is 25 years. For example, if a borrower inputs a down payment that is less than 20% in a mortgage calculator, the amortization period cannot be more than 25 years.
What amortization period should I choose?
Choosing an amortization duration for your mortgage should follow these general guidelines:
- The average mortgage in Canada has an amortization period of 25 years. A 25-year amortization works well in most situations unless you have cash flow issues and need a longer amortization term or you have the money to reduce it.
- Your mortgage main balance will be paid off more quickly if you select a shorter amortization. This will decrease the total cost of interest over time, but it will also increase your monthly or biweekly mortgage payment.
- Amortization periods longer than 25 years are not permitted for insured high-ratio mortgages. A minimum 20% down payment is required if you pick an amortization period longer than 25 years.
Interest rate
Lenders publish their mortgage interest rates in person and online. The price of contracting a loan from a lender is regarded as an interest rate.
It is incorporated into your mortgage payment and is figured as a percentage of your total loan amount. Your monthly mortgage payments are split between paying the lender a portion and paying the principal debt.
The amount of your down payment and the overall cost of borrowing over the course of your mortgage are both impacted by mortgage interest rates. You can either enter a fixed interest rate in the mortgage calculator or a variable interest rate:
- Fixed-rate: During the term of your mortgage, a fixed interest rate is constant. Up until the time of your mortgage’s renewal, nothing changes. Though it’s not always the case, fixed interest rates are always on the high side compared to variable interest rates.
- Variable rate: The market influences a variable interest rate. The prime rate plus or minus a particular percentage is how it is typically offered. The interest rate that banks employ when lending to one another is known as the prime rate. Your monthly interest payment fluctuates along with the prime rate. Variable interest rates are often less expensive than fixed interest rates, though this isn’t always the case.
- Hybrid interest: A hybrid mortgage, often known as hybrid interest, combines variable and fixed rates. You have some protection from interest rate increases because a portion of your mortgage’s interest rate is set. If interest rates fall, the other portion of your rate will benefit you somewhat. Hybrid mortgages frequently have extra terms and conditions. However, they can assist you in taking advantage of low-interest rates without running the danger of having your mortgage payments or amortization term significantly fluctuate.
Factors that determine interest rates
Everybody’s mortgage interest rates are different. Your lender will consider a number of variables when calculating the amount of your mortgage interest rate. The following, among others, may affect the interest rate on your mortgage:
- Mortgage interest types (either fixed or variable)
- Credit rating.
- Earnings
- Level of debt
- Employment Type (ie. if you are self-employed)
- Term of the mortgage (ie. open or closed)
What is the prime rate of interest?
The prime interest rate serves as a benchmark for financial institutions for determining their interest rates for the various loans they provide, including variable-rate mortgages and credit lines. From where does the prime rate originate?
Our central bank, the Bank of Canada, which is in charge of implementing monetary policy, sets an overnight rate that has a significant impact on it.
The interest rate that financial organizations employ while borrowing from and lending to one another is known as the overnight rate. The prime interest rate typically fluctuates within a few days of the overnight rate.
The prime rate is used as a benchmark by financial organizations when establishing interest rates for mortgages, credit lines, personal loans, and other loans.
If the interest rate on your mortgage is variable, you will be charged prime plus or minus the specified amount.
The mortgage interest rate that financial institutions publicly advertise is known as the posted rate. For example, if the prime rate is 1.50% and the advertised rate by the financial institution is 2.50%, you may be charged a total interest of 4.0%
Often, the discount rate for the six largest Canadian banks is less than the rate that is stated. Your mortgage interest rate might be 2.75% if the discount rate is 1.5% and the prime rate is 1.25%.
To give the impression that you are getting a great deal, the discount rate, which is lower than the quoted rate, is occasionally advertised next to the posted rate.
Make sure to ask the lender what their discount rate is if it is not listed or advertised. Always begin a negotiation with the discount rate in mind. You might end up saving tens of thousands of dollars on your mortgage.
Mortgage payment options
It should go without saying that you must repay any mortgage loans you obtain to purchase a home. But there are many different methods you may pay off your mortgage.
To fit your budget and paydays, lenders provide a variety of payment cycles. Let’s look at this:
- Monthly payments: The most typical kind of mortgage payment is this one. If a set monthly payment was agreed upon between you and the lender in the mortgage documents, you will always make the same payment on the same day. A year will include a total of 12 payments from you.
- Semi-monthly payments: If you opt for semi-monthly payments, that means you will make your payment twice a month, each month. By halving the monthly payment as a whole, it is calculated. In other words, if your monthly mortgage payment is $1,500 in full, you will make two payments of $750 each. Even though you are only paying half of the payment twice a month, you will still have to pay the same amount as 12 full monthly payments in a year.
- Bi-weekly payments: Payments made bi-weekly are comparable to those made semi-monthly. The difference is that you now pay half of your mortgage every 14 days rather than just twice a month as usual. Every two weeks, there are 26 payments.
In order to get the actual bi-weekly payment amount, your lender will divide the total of the 12 monthly payments you would have made in a year, multiplied by 26. Only this you can be able to determine your bi-weekly payment.
In other words, if your total monthly payment is $1,500, your lender will increase that by 12 months every year, which comes to $18,000.
The $18,000 will then be divided into 26 biweekly installments by your lender, resulting in a payment of $692.31. So this means you will continue to make a $692.31 mortgage payment every two weeks. You will pay out what would be equal to 12 full monthly payments per annum.
Bi-weekly accelerated payments
With one significant exception, biweekly accelerated payments are nearly comparable to normal biweekly payments. The calculations do not make them equal to 12 regular monthly payments.
As an alternative, your lender merely divides your monthly payment in half, with the remaining half being paid every 14 days.
In other words, your lender will divide your typical monthly mortgage payment of $1,500 into two, which comes to $750.00. You will make three biweekly payments in two months out of the year, for a total of two additional half payments.
When you pay your mortgage in expedited bi-weekly payments, you will have to pay 13 full monthly payments every year as compared to just 12. Accelerated biweekly payments can speed up the mortgage payoff process and save interest costs.
Property tax
Before you can determine the property tax rate, you simply need to multiply both the total estimated value of the property and the property tax rate together.
Between provinces and between municipalities, the mill rate varies. For instance, Toronto tax 0.5997%, Montreal tax 0.7672% and Vancouver tax 0.2468%.
Usually, the property’s real estate listing includes the annual property tax amount. If not, you can check your city’s website or contact city hall to get the annual property tax amount.
Home Insurance
Although it is not mandated by law, mortgage lenders in Canada require home insurance as a condition of your mortgage loan.
If something were to happen to the property that would result in considerable loss or damage, it would shield the lender from financial harm. In Canada, the average cost of homeowner’s insurance is around $1000 annually or $84 per month.
The majority of lenders demand that you have minimal insurance that covers things like fire, lightning, smoke damage, falling objects, hail, wind, frozen pipes, vandalism, etc.
By calling a provider directly, utilizing an online comparison tool, or getting in touch with a broker, you can obtain a free home insurance quotation.
Condo fees
Condo fees are typically listed in the “Condo and Maintenance Information” portion of a condo property’s real estate listing.
You can also speak with the real estate agent handling the listing you’re interested in or receive that information by getting in touch with the condo association. Condo fees are a recurring expense that you must make every month.
Mortgage payments are separate from condo fees each month. Instead of your mortgage lender, you pay them to the condo organization.
Regular upkeep of common areas, renovations, significant repairs, and some utilities are covered by condo fees. Condo fees are non-negotiable and must be paid by all condo owners.
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