Your mortgage payment.
Your monthly payment comes down to four things: the price, your down payment, the rate and the amortization. Test your numbers above, then see what really moves the total.
Updated July 10, 2026
Before you shop for a home, it helps to know what the payment looks like. Not to the dollar, but enough to pick a realistic price range and avoid surprises.
The calculator above gives you an estimate. Below, I explain what makes up that number, so you know which levers you can actually pull.
What goes into a mortgage payment?
The payment covers two things: principal (the amount you borrowed) and interest. Early on, most of it goes to interest; over time, the balance tips toward principal. Municipal taxes and home insurance are not in this payment, so budget for them separately.
How does the down payment change everything?
The larger your down payment, the less you borrow, so the lower the payment. But one threshold matters: at 20% down, your loan no longer needs to be insured. Below that, a premium is added.
- 5 to 9.99% down: the highest premium.
- 10 to 14.99%: a middle premium.
- 15 to 19.99%: a lower premium.
- 20% and up: no insurance premium.
Your amortization matters too, the number of years to pay it off. A longer one means a smaller monthly payment but more interest over time. On an insured mortgage, first-time buyers and buyers of new construction can now go up to 30 years instead of 25.
What is loan insurance, and who pays it?
Below 20% down, the law requires mortgage insurance (CMHC or a private insurer). It protects the lender, not you, but it lets you buy with less cash. The premium is a percentage of the loan, added to the amount you borrow. In Quebec, QST on the premium is paid separately, up front.
Why do Canadian rates work differently?
In Canada, fixed mortgage rates compound twice a year, not monthly. That slightly changes the monthly payment compared with simply dividing the rate by twelve. The calculator uses the correct method, so its result lines up with what your lender will show you.
What is the stress test?
To approve you, the lender checks that you could still pay at a rate higher than yours, a safety margin in case rates rise. The result: you qualify for a little less than your actual rate alone would suggest. Your mortgage broker factors this in from the pre-approval.
Fixed or variable?
Fixed keeps the same rate for the whole term: predictable payments. Variable follows the market: it can rise or fall. Neither is better in the abstract, it depends on your tolerance for risk and the timing. That is a conversation to have with your mortgage broker.
Frequently asked questions
Does the calculator include taxes and home insurance?
No. It calculates principal and interest, which is the mortgage payment itself. Add municipal and school taxes and home insurance to your real monthly budget.
What is the minimum down payment I need?
At least 5% on the first $500,000, then 10% on the portion between $500,000 and $1,500,000, and 20% from $1,500,000 up. The first-time buyer guide walks through examples.
Does a better rate make a big difference?
On a loan of several hundred thousand dollars, even a fraction of a percent changes the payment and especially the total interest over the term. It is worth shopping the rate, and a mortgage broker does that for you.
Sources
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This guide is general information to help you make sense of things, not legal, tax, or financial advice. Rules change and every situation is different, so confirm anything that affects a decision with the right professional, a notary, lawyer, accountant, or mortgage broker, or reach out and I'll point you the right way.
Estimated payment
$2,383.67per month
- Mortgage amount$400,000.00
One more thing this does not show: in Canada your rate is locked for a term, often five years, not for the whole amortization. You renew at whatever rates are when the term ends.
This is an estimate. Your actual rate depends on your file and your lender, and if you put down less than 20%, you'll pay mortgage insurance too. In Quebec that premium also carries a provincial tax on insurance premiums, which is billed separately from the premium itself. Your lender or notary will tell you how it's collected. A mortgage broker can give you the real numbers.
