Down Payment

The standard recommendation is to aim for a 20% down payment on your home, although some mortgage loans require as little as 5% down. Your down payment reduces the total amount of your mortgage loan, so the more money you put down, the lower your payments will be - or the more expensive a house you can buy.

Loan Term (Amortization)

Your loan term affects both your interest rate and monthly payments. The most common choice in Canada is a 25-year term. The calculator allows you to explore various options.

Loan Type

There are several types of mortgage loans, but the most commonly used are fixed-rate and variable-rate loans. Fixed-rate loans have the same interest rate for the entire duration of the loan. That means your monthly payment will be the same, even for long-term loans, such as 25 or 30-year fixed-rate mortgages. Two benefits to this loan type are stability, and being able to calculate your total interest up front. Variable-rate mortgages (or adjustable-rate mortgages) have interest rates that can change over time. Typically they start out at a lower interest rate than a fixed-rate loan, but your payments can change over time as interest rates fluctuate.

Interest Rate

This field is pre-filled with the current average mortgage rate. Your actual rate will vary based on factors like credit score, down payment size, and the type of mortgage you choose.   

Property Tax Rate

The mortgage payment calculator includes estimated property taxes based on the home's value. You can adjust this in the advanced options if you have more specific information.

Home Insurance

Home insurance (also known as homeowner's insurance) is typically required by lenders, depending on the loan program. You can edit this number in the mortgage calculator advanced options.

Other Costs

If your down payment is less than 20%, you'll need mortgage default insurance (often from CMHC). The calculator will estimate this cost. Factor in additional expenses like legal fees and land transfer taxes.