Comprehensive mortgage calculator with amortization schedules, scenario comparisons, and detailed breakdowns for Canadian homebuyers.
20.00% of home price
A mortgage is a loan secured by real estate property. In Canada, mortgages are regulated by federal and provincial laws, with specific rules about down payments, insurance requirements, and amortization periods.
| Type | Rate | Flexibility | Risk |
|---|---|---|---|
| Fixed Rate | Higher | Low | Low |
| Variable Rate | Lower | High | Medium |
| Open Mortgage | Highest | Highest | Low |
| Closed Mortgage | Lower | Low | Low |
Make extra payments to reduce principal faster and save thousands in interest over the life of the mortgage.
Pay half your monthly payment every two weeks. This results in 26 payments per year, equivalent to 13 monthly payments.
Make annual lump sum payments to reduce principal and shorten your amortization period significantly.
The minimum down payment is 5% for homes under $500,000, 5% on the first $500,000 plus 10% on the amount between $500,000-$1,000,000, and 20% on amounts over $1,000,000. CMHC insurance is required for down payments under 20%.
CMHC insurance protects the lender if you default on your mortgage. It's required for down payments under 20% and rates range from 4.0% to 2.4% based on your loan-to-value ratio. The premium is added to your mortgage amount.
The stress test requires you to qualify at the higher of your contract rate plus 2% or 5.25%. This ensures you can afford payments even if interest rates rise. It applies to all insured and uninsured mortgages.
Fixed rates provide payment stability but are typically higher. Variable rates are usually lower but payments can fluctuate. Consider your risk tolerance, financial stability, and interest rate outlook when deciding.
The maximum amortization period is 25 years for insured mortgages (down payment under 20%) and 30 years for uninsured mortgages (down payment 20% or more). Longer amortization means lower payments but more interest over time.
Most mortgages allow extra payments up to 15-20% of the original principal annually without penalty. These payments go directly toward reducing your principal, saving you thousands in interest over the life of the mortgage.
Breaking a mortgage early typically results in prepayment penalties. For fixed-rate mortgages, this is usually the greater of three months' interest or the interest rate differential (IRD). Variable-rate mortgages usually have lower penalties.
Consider your financial situation, interest rate outlook, and life plans. Shorter terms (1-2 years) offer flexibility but more frequent renewals. Longer terms (5+ years) provide stability but less flexibility to take advantage of rate changes.
Calculate required down payments, CMHC insurance, and first-time home buyer benefits.
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