Skip to main content
Ratehub logo
Ratehub logo
Ratehub.ca est une entreprise fièrement détenue et exploitée par des Canadiens, dont les sièges sociaux sont situés à Toronto et à Montréal.

Mortgage Payment Calculator Canada

Get a sense for your mortgage payments, the cash you'll need to close and the monthly carrying costs with Ratehub.ca’s mortgage payment calculator. 

Ratehub.ca's mortgage payment calculator

Start here
  • No Results

-Down payment
+CMHC insurance
$-
$-
$-
$-
=Total mortgage
$-
$-
$-
$-
Amortization
Mortgage rate

-%

-%

-%

-%

Payment frequency
=Mortgage payment
$-
$-
$-
$-

WATCH: How to take advantage of future lower rates

Frequently Asked Questions

How do I use the mortgage payment calculator?


Why does the down payment automatically change on the calculator?


How much is the mortgage payment of $500,000 for 30 years?


What is an amortization schedule?


Are mortgage payments due every month?


How do I calculate monthly payments on a mortgage?


Does the calculator factor in land transfer tax rebates


Are closing costs included in my mortgage payment result?


Why does the Land Transfer Tax output change when I select Toronto, Ontario, as my purchase location?


Find the right calculators for all your mortgage and home buying needs

WATCH: June 4, 2025 Bank of Canada announcement

July 2025: Mortgage market update

2025 has been a relatively slow year for the Canadian housing market, with buyers hunkered down due to the uncertainty over new U.S. tariff threats. If you’re looking for a mortgage rate in Canada, read on for some key information.

  • Real estate update: Canada’s housing market continued its slow but steady rebound in June 2025, with national home sales up 3.5% year over year to 47,871 units. Monthly sales also rose 2.8%, as more buyers returned to the market following a hesitant spring marked by economic uncertainty and tariff concerns. Despite improving activity, prices remained soft. The national average home price declined 1.3% from a year earlier to $691,643, even as it posted a 1.5% gain from May. The MLS Home Price Index, which better reflects typical home values, dropped 3.7% annually but held nearly flat month over month, hinting at early price stability. New listings climbed 8.2% year over year to 97,093, but were down 2.9% from May, tightening supply. That, combined with rising sales, pushed the national sales-to-new-listings ratio up to 50.1% from 47.3% in May. This shift indicates that while buyers still have options, the market is becoming more competitive. Total inventory stood at 206,435 properties, 11.4% higher than last June, with 4.7 months of supply – just shy of the long-term average of 5 months. CREA suggests the market is entering a long-anticipated recovery, supported by lower rates, solid employment, and delayed demand that could surface through the second half of the year.

Also read: National home sales continue to recover in June

  • CPI update: Canada’s inflation rate rose to 1.9% in June, up slightly from 1.7% in the two previous months, according to Statistics Canada’s latest CPI report. The increase was primarily driven by rising vehicle prices, which have been impacted by a 25% U.S. import tariff. New vehicles rose 5.2% year over year, while used vehicles climbed 1.7%, ending a prolonged decline. Altogether, passenger vehicle prices rose 4.1%. In contrast, price growth in other major categories continued to ease. Gasoline prices declined 13.4% annually while overall energy costs edged up slightly. Grocery inflation slowed to 2.8%, from 3.3% the month prior, as fresh vegetable prices posted their first annual decline since 2021. Shelter inflation cooled for a third straight month, rising 2.9% in June compared to 3.0% in May and 3.4% in April. Mortgage interest costs rose 5.6%, down from 6.2% in May, marking the 22nd consecutive month of deceleration. Despite lower headline inflation, core measures remain above the BoC’s 2% target. CPI-Median rose to 3.1% in June, while CPI-Trim stayed flat at 3.0%. These figures, alongside strong job market data and ongoing uncertainty around U.S. tariffs, are likely to keep the Bank of Canada cautious at its next rate announcement on July 30th.

Read more: Canadian CPI rises to 1.9% in June

Canadian housing market forecast for 2025

CREA’s updated forecast for Canada’s housing market reflects a modest shift in expectations for 2025. CREA now projects 469,503 homes will be sold this year – a 3% decline compared to 2024. This adjustment reflects slower-than-expected recovery in major markets like British Columbia, Alberta, and Ontario, where earlier economic uncertainty and U.S. tariff concerns caused many prospective buyers to pause their plans. The national average home price is now forecast to fall 1.7% to $677,368, approximately $10,000 lower than CREA’s April projection. Looking to 2026, CREA anticipates a stronger rebound. National sales are forecast to rise 6.3% to 499,081 units, returning to the trajectory outlined earlier this year. However, this would still mark the fourth consecutive year that sales remain under the 500,000 threshold. The average home price is projected to increase 3% to $697,929, continuing the trend of national prices hovering near the $700,000 level. While the outlook is more stable than earlier in the year, CREA emphasizes that forecast uncertainty remains elevated, particularly given the uneven recovery across provinces and ongoing economic risks.

Highlights from the Bank of Canada’s June 4, 2025 announcement

On June 4, 2025, the Bank of Canada held its benchmark overnight lending rate at 2.75%. This is the second consecutive pause following seven rate cuts between June 2024 and March 2025, amounting to a total reduction of 225 basis points from a peak of 5%.

  • The decision was influenced by a mix of rising inflationary pressures and ongoing trade uncertainty. headline inflation excluding taxes rose to 2.3%, above the Bank’s 2% target, and core inflation reached over 3%.
  • With the overnight rate unchanged, the prime rate remains at 4.95%. This means no immediate change in borrowing costs for Canadians with variable-rate mortgages, HELOCs, or other prime-linked lending products.
  • Fixed mortgage rates, which are driven by bond yields rather than the Bank’s policy rate, remain elevated. The Government of Canada’s 5-year bond yield continues to hover around 2.8%, limiting lenders’ ability to discount rates further. The lowest five-year fixed insured mortgage rate currently available is 3.84%.
  • Returns on savings products like high-interest savings accounts and GICs also remain stable, offering consistent yields in a volatile economic climate.
  • Looking ahead, the BoC is expected to cut rates by another 50 basis points before the end of 2025. However, the Bank remains cautious as it assesses the broader impact of tariffs on exports, business confidence, and household spending.

How U.S. tariffs are influencing today’s mortgage rates

In April 2025, the U.S. shared details about its tariff policy, announcing a 50% reciprocal tariff on countries with U.S. trade surpluses and a 10% baseline tariff on all U.S. trading partners. While Canada is exempt from the reciprocal tariffs, it still faces the 25% tariff on non-CUSMA imports, steel, aluminum, and foreign cars and parts. 

These tariff actions have caused a sharp decline in bond yields. In Canada, the 5-year government bond yield fell to 2.488% on the morning of April 3, 2025. As a result, fixed mortgage rates are now at their lowest in years, with rates as low as 3.74% for insured mortgages and 3.99% for uninsured borrowers. This presents an opportunity for borrowers looking to lock in rates or renew their mortgages.

The Bank of Canada (BoC), initially expected to cut rates in response to the economic challenges, has instead decided to hold rates steady. The BoC is taking a cautious approach, monitoring global developments and potential impacts on the Canadian economy, but they are less likely to make drastic rate cuts for now.

Despite lower mortgage rates, the Canadian housing market is showing signs of slowing down. In February 2025, home sales dropped 10.4% compared to the previous year, and demand has cooled significantly. Buyers are becoming more hesitant due to ongoing uncertainty about the tariffs' impact on the economy. 

Also read: How could 25% US tariffs impact Canadian mortgage rates?

Canadian mortgage reform update

On September 16, 2024, the federal government announced sweeping changes to mortgage qualification rules for first-time home buyers, as well as those purchasing newly-constructed homes.

As of December 15, 2024:

  • 30-year amortizations are available for all first-time home buyers, regardless of whether they have an insured mortgage. These extended amortizations are also available for any purchase of new construction.

  • The maximum purchase price for an insured mortgage (where less than 20% down is paid) is $1.5 million, from the previous $1 million.

These are some of the most impactful mortgage reforms announced since 2012, and are anticipated to increase first-time home buyers’ affordability and access to the housing market. 

Learn more about these new mortgage rule changes in the video below.

WATCH: 2025 mortgage rule changes for homebuyers

Why use a mortgage payment calculator?

When planning to buy a home, it's easy to focus on the final purchase price or your mortgage amount. But actually, the most relevant number to you will be your regular repayment. After all, your mortgage payments are the amount that you'll need to take from your paycheque each month.

What is a mortgage payment?

Your mortgage payment is the amount of money you must pay every month to pay down, and ultimately pay off, your mortgage loan. Your mortgage payment covers both the principal (the actual amount of the loan) and the interest on the loan. It can also include mortgage default insurance, also sometimes known as CMHC insurance (required when your down payment is less than 20% of the cost of your home), property taxes and other fees. When you first begin making payments, more of it goes towards covering interest, but over time, more of your payment will eventually go to paying down your mortgage balance.

What are some factors that can affect your mortgage payments? 

There are several key factors that can affect the size of your mortgage payments. Some of these include:

  • Your home price: This dictates how much you will need to borrow. 
  • Your down payment: The more you are able to pay up front towards the purchase of your home, the smaller your required mortgage amount. In turn, the smaller your monthly mortgage payment will be.
  • Your total mortgage amount: This is the price of your new home, less the down payment, plus mortgage insurance, if applicable.
  • Your interest rate: The lower the interest rate on your mortgage, the lower your monthly payments will be. Ratehub.ca can help you find the best mortgage rates available today to keep your payment as low as possible. When choosing between a variable or fixed mortgage rate, generally speaking, variable rates provide lower mortgage payments as they tend to be lower. However, if you seek stability throughout your mortgage term, a fixed rate may be more suitable for you.
  • Your amortization period: Your amortization period is the length of time it takes to pay off your entire mortgage. The longer your amortization period is, the lower your monthly mortgage payments will be. That said, since it will take you a longer time to pay off your mortgage, you will end up paying more in interest.

Tip for first-time home buyers: GST exemption

Under Prime Minister Mark Carney’s GST exemption proposal, first-time home buyers could save up to $50,000 if they buy a $1-million newly-built home or a substantially renovated property. The Conservative Party has proposed a similar plan, which would apply to homes priced up to $1.3 million and wouldn’t be limited to first-time buyers.

The final form of this policy hinges on the outcome of the Federal Election on April 28, 2025, leaving some details in flux. 

Also read: Federal Liberals and Conservatives vow to remove GST on new home purchases

How do I get approved for a mortgage?

When thinking about your monthly mortgage payments, it’s also important to consider what you’ll need in order to get approved for a mortgage. Here are some of the most important things that prospective lenders will want to see: 

  • A good credit score: You need a credit score of 680 or higher to qualify for the best mortgage rates that allow for the lowest monthly mortgage payments. To qualify for any mortgage at all, you’ll need a credit score of at least 560. Read more on how your credit score affects your ability to get approved for a mortgage.
  • Proof of income: You’ll need to provide proof of income in the form of pay stubs and/or tax documents like your Notice of Assessment (NOA). If you recently started a new job, even with proof of income, many lenders will want to see that you’ve held the position for at least a year. 
  • Ability to pass a mortgage stress test: You will need to pass a mortgage stress test, which ensures that you can still afford your mortgage payments at a rate known as the “qualifying rate”, set by the Office of the Superintendent of Financial Institutions (OSFI), or your contract rate + 2%, whichever is the higher of the two. 
  • Down payment: The size of your down payment affects the house you can afford as well as the size of your mortgage and associated monthly payments. As well, it affects whether you will need to purchase mortgage default insurance, which is required if your down payment is less than 20% of the value of the home you are purchasing. The minimum down payment you’ll need to have depends on the home you’re looking to buy:

Purchase Price

Minimum Down Payment

Less than $500,000

5%

$500,000 - $1,499,999

5% of the first $500,000 and 10% of any amount over the first $500,000

$1,500,000 or more

20%

 

See todays best mortgage rates

Compare current mortgage rates across the Big 5 Banks and top Canadian lenders. Take 2 minutes to answer a few questions and discover the lowest rates available to you.

3.84%

Best fixed rate in Canada

see my rates

How to lower your mortgage payments

There are a few ways to lower your monthly mortgage payments. You can reduce the purchase price, make a bigger down payment, extend the amortization period or find a lower mortgage rate. Use the calculator to see what your payment would be in different scenarios.

Keep in mind that if your down payment is less than 20%, your maximum amortization period is 25 years. As for finding a lower mortgage rate, it’s always a good idea to speak to a mortgage broker for assistance.

How can you pay off your mortgage faster? 

If you are able to pay your mortgage off faster, it can save you thousands of dollars in interest. However, any of the methods required to pay off your mortgage faster will result in larger monthly payments on your part, albeit for a shorter period of time. Be aware that some lenders may include pre-payment penalties with your mortgage, so it’s important to understand the fine print. That said, some of the ways you can pay off your mortgage more quickly include:

  • Accelerate your mortgage payment schedule: Switch to a more frequent payment plan. For example, if you were making payments on a monthly basis, you may want to consider paying on a bi-weekly basis.
  • Increase the amount of your mortgage payments: Any increase in the amount you are paying towards your mortgage on a monthly basis will speed up the time it takes to pay off your mortgage. 
  • Make a lump sum payment: If you receive a lump sum such as a tax refund, inheritance, a bonus, etc., and you can afford it, apply that lump sum towards your mortgage payments. 

Lender Mortgage Rates