Mortgage Planning in Canada
A calculator is a useful starting point, but your true budget also includes property taxes, home insurance, utilities, maintenance and possible condo fees. Use conservative inputs and leave room for changes in rates and everyday expenses.
Down payment and mortgage insurance
For an insured mortgage, the current minimum down payment is 5% on the first $500,000 of the purchase price and 10% on the portion above $500,000. Homes priced at $1.5 million or more require at least 20% down. When your down payment is below 20%, mortgage default insurance will typically apply. This insurance protects the lender, and its cost can affect your total borrowing.
Term and amortization are different
In Canada, the mortgage term is the length of your current agreement with the lender—often one to five years. The amortization is the total period used to pay the mortgage, commonly 25 years. The calculator's “Loan Term” selection represents the amortization period. A longer amortization can reduce the regular payment but usually increases total interest.
Fixed and variable rates
A fixed rate stays unchanged during the mortgage term. A variable rate can move as the lender's prime rate changes. Compare more than the starting rate: ask about payment changes, prepayment privileges, portability and the cost of breaking the mortgage.
Mortgage qualification and the stress test
Federally regulated lenders generally qualify borrowers at the higher of 5.25% or the negotiated rate plus 2%. A pre-approval helps define a search range, but final approval can still depend on the property, appraisal and your finances at closing.
Property taxes, insurance and condo fees
Enter realistic annual property taxes and home insurance costs. For a condo, include the monthly condo fee and ask what it covers. Lenders may use part of that fee when calculating affordability.
Plan the next step
We can help you compare homes across the GTA and Durham Region using the complete monthly picture—not only the list price. Ask for a personalized buyer plan built around your budget, timing and priorities.
Buy Smart. Sell Confident.
This calculator and guide are for general information only. Results are estimates, not financial advice, a mortgage approval or a guarantee of rates, terms or costs. Confirm details with a qualified mortgage professional.