Estimate your monthly mortgage payment, including principal, interest, property tax, home insurance and condo fees.
Rates as of Q2 2025 (example)
| Period | Date | Payment | Principal | Interest | Balance |
|---|
This Canadian mortgage calculator estimates your monthly mortgage payment, including principal and interest, property tax, home insurance, and condo fees if applicable — giving you a clear picture of the total monthly cost of owning a home, alongside a full amortization schedule showing how your balance declines over time.
This calculator applies the standard amortizing loan formula to your loan amount (home price minus down payment) over your chosen amortization period, then adds property tax and home insurance (converted to monthly amounts) and any condo fees to give your total monthly housing cost. Any extra payment reduces the principal faster, shortening the effective amortization period and reducing total interest.
Formula: Loan Amount = Home Price − Down Payment. Monthly Principal & Interest = Loan Amount × [r(1+r)n] ÷ [(1+r)n − 1], where r is the monthly interest rate (Annual Rate ÷ 12 ÷ 100) and n is the number of monthly payments (Amortization Period × 12). Total Monthly Payment = Principal & Interest + (Annual Property Tax ÷ 12) + (Annual Home Insurance ÷ 12) + Condo Fees.
Example: A CA$500,000 home with a CA$100,000 down payment (20%) gives a loan amount of CA$400,000. At a 5.5% interest rate (example rate — enter your actual rate) over a 25-year amortization period, the principal and interest payment would be roughly CA$2,456/month. Adding CA$291.67/month for property tax (CA$3,500/year) and CA$100/month for home insurance (CA$1,200/year) brings the total monthly payment to about CA$2,848. Over the full 25-year amortization period, total interest would be roughly CA$336,905. (Note: all figures in this example are for illustration purposes only and do not represent a loan offer.)
Canadian mortgages have some important features that differ from other countries. First, the "amortization period" (the total time to pay off the mortgage, commonly 25 years, or up to 30 years for buyers with at least a 20% down payment) is usually longer than the "mortgage term" (the length of time your interest rate is locked in, commonly 5 years) — at the end of each term, you renew your mortgage, often at a different interest rate, which can change your payment significantly. Second, fixed-rate mortgages in Canada are conventionally quoted using semi-annual compounding (rather than the monthly compounding used by many online calculators, including a simplified approach like this one) — the difference is small but means a calculator using monthly compounding may give a slightly different figure than your lender's official quote; always confirm your exact payment with your lender. Third, if your down payment is less than 20% of the home price (a "high-ratio" mortgage), you'll generally need mortgage loan insurance (commonly through CMHC), which adds a premium to your mortgage — see our CMHC Insurance Calculator for this. Finally, federally regulated lenders apply a "mortgage stress test," requiring you to qualify at a rate higher than your actual contract rate, to ensure you could still afford payments if rates rise — see our Mortgage Stress Test Calculator. Property tax rates and rules vary significantly by province and municipality, and many homebuyers also pay land transfer tax on closing (see our Land Transfer Tax Calculator), which isn't included in the monthly figures here.
The amortization period is the total length of time it would take to pay off your mortgage completely (commonly 25 years in Canada). The mortgage term is the length of time your current interest rate and conditions are locked in (commonly 5 years) - at the end of each term, you renew your mortgage, often at a new interest rate, which continues until the full amortization period is complete.
Canadian fixed-rate mortgages are conventionally calculated using semi-annual compounding, while this calculator (like many general-purpose tools) uses standard monthly compounding for simplicity. The difference is typically small but can result in a slightly different payment figure than your lender's official quote - always confirm your exact payment with your lender or mortgage broker.
If your down payment is less than 20% of the home's purchase price, you'll generally need mortgage loan insurance (often called CMHC insurance, after Canada Mortgage and Housing Corporation, though other insurers also offer it). This insurance protects the lender, not you, and its premium is typically added to your mortgage principal, increasing your loan amount and payments. Use our CMHC Insurance Calculator to estimate this premium.
Federally regulated lenders in Canada must verify that you could afford your mortgage payments at a rate higher than your actual contract rate (the higher of a minimum qualifying rate or your contract rate plus a buffer) - this is the "stress test." It is designed to ensure borrowers have some cushion if interest rates rise at renewal. See our Mortgage Stress Test Calculator to check whether you would likely qualify.
No. Land transfer tax is a one-time tax paid on closing (not a monthly cost), and rates vary significantly by province and sometimes by municipality (for example, some cities charge an additional municipal land transfer tax on top of the provincial tax). Use our Land Transfer Tax Calculator to estimate this separately, as it is an important part of your closing costs alongside your down payment.
An extra monthly payment goes directly toward reducing your principal balance, which reduces the interest charged in future periods and can significantly shorten your effective amortization period. Many Canadian mortgages include prepayment privileges (such as annual lump-sum payments or increased regular payments) within certain limits - check your specific mortgage agreement for what is allowed without penalty.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute a mortgage offer or financial advice. The default interest rate is a sample value and does not reflect rates currently available from any specific lender. This calculator uses simplified monthly compounding, which may differ slightly from the semi-annual compounding conventionally used for Canadian fixed-rate mortgages. Mortgage insurance, stress test requirements, property tax, and land transfer tax vary by lender, location, and individual circumstances and are not fully reflected in this calculator. Always obtain a personalised quote from a lender or mortgage broker before making borrowing decisions.