This Canadian mortgage calculator estimates your monthly payment in CAD based on the loan amount, interest rate, and amortization period. Defaults reflect typical Canadian 5-year fixed pricing.
Canadian mortgages have a unique structure: the amortization period (typically 25 years, or up to 30 for non-insured loans) is how long it takes to repay the full loan, but the term (typically 5 years) is how long your current rate and conditions are locked in. At the end of the term you renew, choosing a new rate and term until the loan is fully amortized. The 5-year fixed is the most popular product in the country.
Federally regulated lenders must qualify borrowers at the higher of (a) the contract rate plus 2%, or (b) the Bank of Canada benchmark qualifying rate — currently around 5.25%. This stress test means you can typically afford less house than your headline rate suggests. Some provincial credit unions are exempt.
The minimum down payment is 5% on the first C$500,000 and 10% on the portion above, up to C$1.5 million. Down payments under 20% require mortgage default insurance through CMHC, Sagen, or Canada Guaranty, typically 2.8–4.0% of the loan amount, added to the mortgage. Larger down payments avoid insurance entirely.
Borrowing C$500,000 at 4.79% over a 25-year amortization gives a monthly payment of around C$2,851. Over a 5-year term you'd pay about C$171,000, of which roughly C$110,000 is interest and C$61,000 is principal. At renewal, you'd negotiate a new rate on the remaining balance.
It's the most popular because it balances rate certainty with reasonable flexibility, but variable rates have historically come out cheaper over long horizons. The right choice depends on rate outlook and your risk tolerance.
It's mortgage default insurance required on loans with less than 20% down. The premium is added to your loan and paid off over time.
At the end of your term (e.g. 5 years), the lender presents new rate options on the remaining balance. You can renew with them or switch lenders — many borrowers don't shop around at renewal and overpay as a result.
Most Canadian mortgages allow 10–20% prepayment per year without penalty, plus an option to increase the regular payment. Breaking a fixed mortgage early can trigger steep Interest Rate Differential (IRD) penalties.
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