🏠 Canadian Mortgage Calculator

Calculate your monthly mortgage payments with Canadian stress test rates. See how extra payments can save you thousands.

Mortgage Details

Enter your home purchase information

$
$

20.0% down payment

Current stress test ~5.25%5.25%

💡 Canadian Mortgage Info

  • • Minimum 5% down (CMHC required if <20%)
  • • Stress test at 5.25% or contract +2%
  • • Accelerated bi-weekly = 13 monthly payments/year

Payment Summary

Monthly Payment

$0

Mortgage Breakdown

Loan Amount:$0
Total Interest:$0
Total Paid:$0
Payoff Date:

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Disclaimer: This calculator provides estimates based on the inputs you provide. Actual mortgage terms may vary based on your lender, credit score, property type, and other factors. This is not financial advice. Consult with a licensed mortgage professional before making any financial decisions. BudgetSprout is not responsible for any decisions made based on these calculations.

📚 What is Mortgage Amortization?

Amortization is the process of paying off your mortgage over time through regular payments. Each payment covers both principal (the loan amount) and interest (the cost of borrowing).

Key insight: Early in your mortgage, most of your payment goes toward interest. Over time, more goes toward principal.

Example: On a $400,000 loan at 5.5% over 25 years, your first payment might be $700 principal + $1,833 interest. Your last payment would be nearly all principal.

Canadian advantage: Making extra payments can save you tens of thousands in interest and shave years off your mortgage!

Understanding Canadian Mortgages

Minimum Down Payment: In Canada, you need at least 5% down for homes under $500,000, 10% for the portion above $500,000, and 20% for homes over $1 million.

CMHC Insurance: If your down payment is less than 20%, you'll need mortgage default insurance (CMHC, Sagen, or Canada Guaranty).

Stress Test: You must qualify at the greater of your contract rate +2% or 5.25%, even if your actual rate is lower.

Amortization: Maximum 25 years with CMHC insurance, up to 30 years with 20%+ down payment.

How Extra Payments Help

Pay Down Principal Faster: Extra payments go directly to your principal, reducing the total interest you'll pay.

Example: On a $400,000 mortgage at 5.5% over 25 years, adding just $200/month extra saves you ~$65,000 in interest and pays off your mortgage 5 years earlier!

Prepayment Options: Most Canadian mortgages allow 15-20% prepayment annually without penalty. Check your mortgage agreement.

Tax-Free Savings: Unlike RRSP contributions, paying down your mortgage isn't tax-deductible, but the interest savings are tax-free!