Whether you are buying your first home, renewing your mortgage, or refinancing, these free tools help you make informed decisions about the biggest financial commitment most Canadians make.
Mortgage Calculators
Calculate monthly payments, total interest, and see your full amortization schedule.
Find out how much home you can afford based on your income and debts.
See your payment schedule with a detailed breakdown of principal and interest.
See how lump sum or extra payments can save you thousands in interest.
Calculate the minimum down payment required for your home purchase.
Estimate your CMHC mortgage insurance premium based on your down payment.
Calculate the penalty for breaking your mortgage early (IRD vs. 3 months interest).
Check if you qualify for a mortgage based on your income, debts, and the stress test.
See if refinancing makes sense by comparing your current mortgage to a new rate.
Compare renewal options and see how different rates affect your payments.
Check if you pass the B-20 stress test at the qualifying rate.
Calculate payments on an interest-only mortgage and compare to a standard mortgage.
Estimate how much you can access from your home equity with a reverse mortgage.
Compare the total cost of buying a home versus renting and investing the difference.
Home Buying Tools
Find out the minimum income needed to buy a home at any price in Canada.
See what income is required to buy a home in major Canadian cities.
Calculate your GDS and TDS ratios to see if you meet lender requirements.
Estimate all the costs of closing on a home purchase in your province.
Calculate your LTV ratio to understand your equity and insurance requirements.
Estimate payments on a home equity line of credit.
Programs, incentives, and calculators for first-time buyers in Canada.
Rates & Market Data
Compare current fixed and variable mortgage rates from top Canadian lenders.
Monthly housing market data for Toronto, Vancouver, Calgary, Edmonton, and Montreal.
Compare fixed and variable rate mortgages to find the best option for you.
How Mortgages Work in Canada
A mortgage is a loan secured against the property you’re buying. The lender registers a legal claim (lien) on the home, and you make regular payments of principal and interest until the loan is paid off or you sell the property. In Canada, mortgages have several features that differ from other countries.
Mortgage Terms vs. Amortization
One of the most commonly misunderstood concepts in Canadian mortgages is the difference between term and amortization:
| Concept | What It Means | Typical Length |
|---|---|---|
| Amortization | Total time to pay off the mortgage | 25 or 30 years |
| Term | Length of your current rate agreement | 1–10 years (5 most common) |
At the end of each term, you renew your mortgage — often at a different interest rate. This means Canadian homeowners renegotiate their mortgage multiple times over the life of the loan, unlike the US where 30-year fixed rates lock in for the full amortization.
The Stress Test (B-20 Guidelines)
Since 2018, all Canadian mortgage applicants must pass the federal stress test. You must qualify at the higher of:
- Your contracted mortgage rate plus 2%, or
- The Bank of Canada’s qualifying rate (floor of 5.25%)
This means even if you’re offered a 4.5% rate, you must prove you can afford payments at 6.5%. The stress test limits how much Canadians can borrow and is designed to protect against future rate increases.
Down Payment Rules
Canadian down payment requirements are based on the purchase price:
| Purchase Price | Minimum Down Payment |
|---|---|
| Up to $500,000 | 5% |
| $500,001–$1,499,999 | 5% of first $500K + 10% of remainder |
| $1,500,000+ | 20% (not eligible for mortgage insurance) |
If your down payment is less than 20%, you must purchase mortgage default insurance from CMHC, Sagen, or Canada Guaranty. This premium (ranging from 2.8% to 4% of the mortgage amount) protects the lender if you default.
Fixed vs. Variable Rates
| Feature | Fixed Rate | Variable Rate |
|---|---|---|
| Rate changes | Locked for the term | Moves with prime rate |
| Payment certainty | High | Lower |
| Penalty to break | Higher (IRD calculation) | Lower (3 months interest) |
| Historically cheaper | Less often | More often |
Historically, variable rates have saved borrowers money over time, but fixed rates offer peace of mind — especially during periods of rising rates.
Semi-Annual Compounding
Canadian fixed-rate mortgages use semi-annual compounding, which is unique compared to the monthly compounding used in the US. This means interest is calculated and compounded twice per year rather than twelve times, resulting in slightly lower effective rates. Variable-rate mortgages in Canada compound monthly.
Key Canadian Mortgage Programs
- First Home Savings Account (FHSA) — Tax-deductible contributions grow tax-free for a first home purchase, up to $40,000 lifetime
- Home Buyers’ Plan (HBP) — Withdraw up to $60,000 from your RRSP for a home purchase (must repay over 15 years)
- First-Time Home Buyer Incentive — Shared equity program through CMHC
- First-Time Home Buyers’ Tax Credit — $1,500 non-refundable federal tax credit
- GST/HST New Housing Rebate — Partial rebate of sales tax on newly built homes
Mortgage Costs Beyond the Monthly Payment
The monthly mortgage payment is just one part of the cost of homeownership:
| Cost | Typical Amount |
|---|---|
| Mortgage payment | Varies by amount, rate, amortization |
| Property tax | 0.5–2.5% of assessed value annually |
| Home insurance | $1,200–$2,500/year |
| Maintenance & repairs | 1–2% of home value annually |
| Utilities | $200–$500/month |
| CMHC insurance | 2.8–4% of mortgage (if <20% down) |
| Closing costs | 1.5–4% of purchase price (land transfer tax, legal fees, inspections) |
Understanding these costs is essential for determining true affordability — qualifying for a mortgage doesn’t necessarily mean you can comfortably afford the home.
Browse our mortgage calculators and guides above to run the numbers for your specific situation, or explore our housing market reports for the latest data on home prices across Canada.
Explore by Topic
Browse our mortgage guides organized by topic:
- First-Time Home Buyers — FHSA, HBP, down payment programs, and first purchase guides
- Mortgage Types — Fixed vs variable, open vs closed, conventional vs insured
- Mortgage Payments — Accelerated bi-weekly, prepayment privileges, pay off faster
- Rates — Today’s rates, rate forecasts, and lender comparison
- Renewal — Renewal strategies, porting, breaking your mortgage
- Refinancing & Home Equity — HELOC, cash-out refinance, renovation financing
- Home Buying Process — Offer to close, documents, inspections, lawyers
- Lenders & Brokers — Big banks, credit unions, digital lenders, B-lenders
- Alternative Mortgages — Bad credit, self-employed, non-resident mortgages
- Investment Properties — Rental property mortgages and financing
- Property Types — Condos, townhouses, mobile homes, co-ops
- Buying by Location — Affordability by province and city
- Housing Market — Market trends, forecasts, and affordability data
- Rules & Regulations — Stress test, B-20, CMHC rules
- Closing Cost Calculator — Land transfer tax, legal fees, and closing costs by province
- How Much House Can I Afford — Affordability by salary, province, and down payment
- Income Needed to Buy a Home — Minimum income required by home price and city
- Mortgage Cost Guide — Monthly payments by mortgage amount across all common rates
Explore Other Topics
- Tax Calculators — Land transfer tax, income tax, capital gains tax
- Investing & Savings — TFSA, RRSP, FHSA, retirement planning
- Personal Finance — Budgeting, salary, net worth, car affordability
- Banking — Prime rate, GIC rates, savings accounts
- Insurance — Home insurance, life insurance, mortgage insurance
- Life Insurance — Protect mortgage obligations and family cash flow
- Debt & Loans — HELOCs, personal loans, debt management
→ Back to: Mortgage Guide Canada
Browse All Mortgages Articles
Browse all 21 articles in this section.
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- Mortgage Affordability Calculator Canada
- Mortgage Cost Guide Canada 2026 | Monthly Payments by Mortgage Amount
- Mortgage Lenders & Brokers in Canada 2026: How to Find the Best Rate
- Mortgage Payment Calculator Canada
- Mortgage Payments in Canada: Strategies, Calculators & How to Pay Off Faster
- Mortgage Refinancing & Home Equity in Canada 2026
- Mortgage Renewal in Canada: Complete Guide 2026