How we calculated average mortgage payments
The mortgage payments shown on this page are calculated using current market rates and standard mortgage terms. Here are our assumptions:
| Parameter | Value |
|---|---|
| Interest rate | 4.35% (average 5-year fixed, 10 major lenders, Mar 2026) |
| Amortization | 25 years |
| Payment frequency | Monthly |
| Mortgage type | Fixed rate |
| Down payment | 20% (unless otherwise noted) |
All calculations assume a conventional mortgage (20%+ down payment) unless specifically noted. Payments do not include property tax, home insurance, or condo fees.
Use our Mortgage Calculator to run your own numbers with custom inputs.
Average mortgage payment by province
Based on the January 2026 average home price in each province, a 20% down payment, and a 5-year fixed rate of 4.35% over 25 years:
| Province | Avg. Home Price | Down Payment (20%) | Mortgage Amount | Monthly Payment |
|---|---|---|---|---|
| British Columbia | $924,239 | $184,848 | $739,391 | $4,058 |
| Ontario | $778,102 | $155,620 | $622,482 | $3,416 |
| Quebec | $538,121 | $107,624 | $430,497 | $2,363 |
| Alberta | $513,162 | $102,632 | $410,530 | $2,253 |
| Nova Scotia | $435,387 | $87,077 | $348,310 | $1,912 |
| Prince Edward Island | $417,830 | $83,566 | $334,264 | $1,835 |
| Manitoba | $373,802 | $74,760 | $299,042 | $1,641 |
| Newfoundland & Labrador | $348,366 | $69,673 | $278,693 | $1,530 |
| Saskatchewan | $333,574 | $66,715 | $266,859 | $1,465 |
| New Brunswick | $329,850 | $65,970 | $263,880 | $1,448 |
| Canada (national) | $652,941 | $130,588 | $522,353 | $2,867 |
The gap between the most expensive province (British Columbia at $4,058/month) and the most affordable (New Brunswick at $1,448/month) is $2,610 per month — or $31,320 per year.
Average mortgage payment by city
For Canada’s major cities, here are the estimated monthly mortgage payments based on current average home prices:
| City | Avg. Home Price | Down Payment (20%) | Monthly Payment |
|---|---|---|---|
| Vancouver | $1,206,180 | $241,236 | $5,296 |
| Victoria | $1,307,400 | $261,480 | $5,741 |
| Toronto | $1,008,968 | $201,794 | $4,432 |
| Waterloo Region | $753,316 | $150,663 | $3,309 |
| Hamilton | $734,639 | $146,928 | $3,227 |
| Montreal | $656,708 | $131,342 | $2,885 |
| Ottawa | $641,436 | $128,287 | $2,818 |
| Calgary | $627,776 | $125,555 | $2,758 |
| London | $624,550 | $124,910 | $2,744 |
| Halifax | $569,778 | $113,956 | $2,503 |
| Edmonton | $448,761 | $89,752 | $1,972 |
| Saskatoon | $414,984 | $83,000 | $1,823 |
| Winnipeg | $383,977 | $76,795 | $1,687 |
| Regina | $315,420 | $63,084 | $1,386 |
Victoria has the highest estimated mortgage payment at $5,741/month due to its high benchmark price, while Regina is the most affordable major city at $1,386/month.
Mortgage payments by home price
Here’s what your monthly mortgage payment would be at different home prices, assuming a 20% down payment, 4.35% rate, and 25-year amortization:
| Home Price | Down Payment (20%) | Mortgage Amount | Monthly Payment |
|---|---|---|---|
| $300,000 | $60,000 | $240,000 | $1,317 |
| $400,000 | $80,000 | $320,000 | $1,757 |
| $500,000 | $100,000 | $400,000 | $2,196 |
| $600,000 | $120,000 | $480,000 | $2,635 |
| $700,000 | $140,000 | $560,000 | $3,074 |
| $800,000 | $160,000 | $640,000 | $3,513 |
| $900,000 | $180,000 | $720,000 | $3,952 |
| $1,000,000 | $200,000 | $800,000 | $4,392 |
| $1,200,000 | $240,000 | $960,000 | $5,270 |
| $1,500,000 | $300,000 | $1,200,000 | $6,588 |
Impact of down payment size on monthly payments
Your down payment size directly affects your monthly payments — not just because it changes the mortgage amount, but also because smaller down payments require CMHC mortgage insurance.
Using a $600,000 home as an example:
| Down Payment | Amount | CMHC Insurance | Total Mortgage | Monthly Payment |
|---|---|---|---|---|
| 5% ($30,000) | $570,000 | $22,800 (4.00%) | $592,800 | $3,254 |
| 10% ($60,000) | $540,000 | $16,740 (3.10%) | $556,740 | $3,056 |
| 15% ($90,000) | $510,000 | $14,280 (2.80%) | $524,280 | $2,878 |
| 20% ($120,000) | $480,000 | $0 | $480,000 | $2,635 |
| 25% ($150,000) | $450,000 | $0 | $450,000 | $2,470 |
| 30% ($200,000) | $400,000 | $0 | $400,000 | $2,196 |
A 5% down payment results in a monthly payment that is $619 more than a 20% down payment — that’s $7,428 per year in extra costs, primarily due to the CMHC insurance premium being added to the mortgage.
Impact of interest rate on monthly payments
Interest rates have a massive effect on affordability. Here’s how different rates affect the monthly payment on a $500,000 mortgage (25-year amortization):
| Interest Rate | Monthly Payment | Total Interest Paid | Total Cost |
|---|---|---|---|
| 3.00% | $2,366 | $209,896 | $709,896 |
| 3.50% | $2,494 | $248,289 | $748,289 |
| 4.00% | $2,626 | $287,791 | $787,791 |
| 4.35% | $2,745 | $323,458 | $823,458 |
| 4.50% | $2,763 | $328,781 | $828,781 |
| 5.00% | $2,903 | $370,876 | $870,876 |
| 5.50% | $3,047 | $414,063 | $914,063 |
| 6.00% | $3,194 | $458,319 | $958,319 |
The difference between a 3.00% and 6.00% rate on a $500,000 mortgage is $828 per month — or $248,423 in total interest over 25 years.
Impact of amortization period
Choosing a longer amortization lowers your monthly payment but increases total interest paid. On a $500,000 mortgage at 4.35%:
| Amortization | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 15 years | $3,787 | $181,594 | $681,594 |
| 20 years | $3,136 | $252,702 | $752,702 |
| 25 years | $2,745 | $323,458 | $823,458 |
| 30 years | $2,478 | $392,065 | $892,065 |
Extending from 25 to 30 years saves $267/month but costs an additional $68,607 in total interest.
As of 2024, the federal government now allows 30-year amortizations for first-time home buyers purchasing new builds. This option isn’t available for resale purchases unless you’re putting 20%+ down.
How much income do you need for the average mortgage?
Based on the national average mortgage payment of approximately $2,867/month, here’s the gross household income you’d typically need to qualify:
Qualifying with the stress test
Canadian mortgage lenders use the mortgage stress test, which requires you to qualify at the higher of your contract rate + 2% or 5.25%. With a contract rate of 4.35%, you’d be stress-tested at 6.35%.
For a mortgage of $522,353 (80% of the $652,941 national average), assuming $4,000/year in property tax and $1,200/year in heating:
| Metric | Amount |
|---|---|
| Monthly mortgage at stress test rate (6.35%) | $3,460 |
| Monthly property tax | $333 |
| Monthly heating | $100 |
| Total monthly housing costs | $3,893 |
| Maximum GDS ratio (39%) | $9,982 required gross monthly income |
| Required annual household income | ~$119,800 |
This means you typically need a household income of approximately $120,000 to qualify for the average-priced Canadian home. In Vancouver or Toronto, you’d need closer to $200,000–$250,000.
Mortgage payment tips for Canadians
1. Shop for the best rate
The spread between the lowest available 5-year fixed rate (3.69% as of March 2026) and the average posted rate (4.35%) represents a savings of approximately $200/month on a $500,000 mortgage. Always compare rates from multiple lenders, including mortgage brokers, credit unions, and online lenders.
2. Consider accelerated bi-weekly payments
Switching from monthly to accelerated bi-weekly payments means you make the equivalent of one extra monthly payment per year. On a $500,000 mortgage at 4.35%:
- Monthly payments: 25 years, $323,458 in interest
- Accelerated bi-weekly: ~22 years, $278,000 in interest — saving $45,458 and paying off 3 years earlier
3. Make lump-sum prepayments
Most mortgages allow annual lump-sum prepayments of 10–20% of the original principal. Even small extra payments can save tens of thousands in interest over the life of the mortgage.
4. Choose the right amortization
While 30-year amortizations are now available to first-time buyers of new builds, the 25-year standard remains more cost-effective overall. Only extend to 30 years if you need the lower payment to qualify or manage cash flow.
5. Keep total housing costs under 30% of income
The traditional guideline is to keep your total housing costs (mortgage payment, property tax, heating, and condo fees) under 32% of gross household income (the GDS ratio). Stretching beyond this can leave you vulnerable to rate increases at renewal.
Mortgage renewal shock in 2026
A significant concern for Canadian homeowners in 2026 is mortgage renewal risk. Many Canadians who locked in 5-year fixed rates in 2020–2021 at rates between 1.5%–2.5% are now renewing at rates of 4.0%–5.0%.
For a $400,000 mortgage originally at 2.0%, the payment increase at renewal to 4.35% would be:
| Scenario | Old Rate (2.0%) | New Rate (4.35%) | Increase |
|---|---|---|---|
| Monthly payment | $1,693 | $2,185 | +$492/month |
| Annual cost | $20,316 | $26,220 | +$5,904/year |
The Bank of Canada estimated that a large portion of outstanding Canadian mortgages will renew in 2026, with many homeowners facing payment increases of 20–40%.
Related calculators
- Mortgage Calculator — calculate your monthly mortgage payment with custom inputs
- Mortgage Affordability Calculator — find out how much home you can afford
- Mortgage Down Payment Calculator — determine your minimum down payment
- Debt Service Ratio Calculator — check if you qualify under GDS/TDS limits
- Income to Afford Home Calculator — see the income needed for a specific home price
- Mortgage Stress Test Calculator — calculate your qualifying rate
Data sources
- Canadian Real Estate Association (CREA) — national and provincial average home prices (January 2026)
- Bank of Canada — policy interest rate and mortgage rate data
- CMHC — mortgage insurance premium rates