Home buying & mortgages
Home buying calculators.
Every calculator follows official Canadian rules — semi-annual mortgage compounding, OSFI stress test, real CMHC premiums, and province-specific land transfer taxes. No sign-up required.
The home
Location
Loan terms
Your contract (offered) rate
Max 25yr if CMHC insured
Monthly housing costs
Divide annual tax by 12
$0 if freehold house
Typical: $100–$250/mo
Heating, electricity, water, gas. Typical: $200–$400/mo
Repairs + capital reserve. ~1% of value/yr ÷ 12, or a % of monthly rent
If you plan to rent out part of your home (e.g. basement suite), enter the rent amount here to reduce your total monthly cost.
If part of your down payment comes from a HELOC or personal loan, enter the details to see your combined monthly obligation.
How does this work?
Canadian mortgages compound semi-annually by law (Interest Act). The effective monthly rate is: (1 + annual rate / 2)1/6 - 1, not annual rate / 12 as in the US. At 4.5%, this gives ~0.3704% vs. 0.375% — a difference that adds up over 25 years.
CMHC Insurance: Required when down payment is under 20% (homes up to $1.5M). Premiums: 5–9.99% down → 4.00%, 10–14.99% → 3.10%, 15–19.99% → 2.80% of the mortgage amount. Added to your mortgage balance.
Minimum Down Payment: 5% on the first $500K + 10% on the portion above $500K. For example, a $700K home requires $45,000 minimum (5% x $500K = $25,000 + 10% x $200K = $20,000). Homes over $1.5M require 20% down.
Tips & Tricks to Save Thousands
- Switch to Accelerated Bi-Weekly payments: Instead of 12 monthly payments, you make 26 half-payments per year — equivalent to 13 monthly payments. That one extra payment per year goes straight to principal, shaving years off your mortgage and saving tens of thousands in interest.
- Round up your payments: If your payment is $1,420, round up to $1,500. The extra $80/month reduces your amortization significantly over time.
- Use lump-sum prepayments: Most Canadian lenders allow 10–20% annual prepayment. Tax refunds, bonuses, or FHSA withdrawals applied as lump sums can save years of payments.
- Choose a shorter amortization: A 20-year mortgage vs. 25-year at the same rate can save you 15–20% in total interest — if you can afford the higher payment.
Income & debts
Combined household income before tax
Car loans, student loans, credit cards
Housing costs
Estimate ~1% of home price/year
Banks use $100–$200 as a benchmark
Loan
Rate your lender offered you. GDS/TDS ratios are applied at the stress-test rate.
What is the stress test?
Since 2018, OSFI requires all federally regulated lenders to qualify borrowers at the higher of 5.25% or your contract rate + 2%. So if your lender offers 4.5%, you're tested at 6.5%. This protects you if rates rise at renewal. GDS (Gross Debt Service) = (mortgage + property tax + heating) / gross income — must be under 39%. TDS (Total Debt Service) adds all other debts — must be under 44%.
Tips & Tricks to Boost Affordability
- Pay down debt first: Every $500/mo in car payments or credit card minimums reduces your max mortgage by ~$100,000. Eliminating debt before applying dramatically increases what you qualify for.
- Increase your down payment: A larger down payment reduces the mortgage amount, lowers your GDS/TDS ratios, and may eliminate CMHC insurance entirely (at 20%+).
- Add a co-borrower: A spouse or partner's income is added to household income, directly increasing your maximum purchase price.
- Extend amortization to 30 years: If you have 20%+ down, a 30-year amortization lowers your stress-test payment, letting you qualify for more — though you'll pay more interest overall.
Not available for homes >= $1.5M
Must be at least 5% of purchase price
How does CMHC insurance work?
CMHC mortgage insurance (also called CMHC default insurance) protects the lender — not you — if you default. Premium rates: 5–9.99% down → 4.00%, 10–14.99% → 3.10%, 15–19.99% → 2.80% of the mortgage amount. The premium is added to your mortgage balance, and you pay interest on it too. It's not required for homes over $1.5M or down payments >= 20%. The premium is also subject to provincial sales tax in some provinces (ON, QC, SK, MB).
Tips & Tricks to Minimize Insurance Cost
- Hit the 10% or 15% threshold: Moving from 5% to 10% down drops your premium from 4.00% to 3.10%. On a $500K home, that saves $4,250 in insurance cost.
- Save to 20% and skip it entirely: At 20% down, CMHC insurance is not required — saving you the full premium plus years of interest on it.
- Combine FHSA + HBP + savings: Use all three to maximize your down payment. FHSA ($40K) + HBP ($60K) + savings can get you past the 20% threshold faster.
Toronto charges a second municipal LTT
Eligible for rebates in ON & BC
Land transfer tax rates by province
Ontario: Graduated brackets — 0.5% to 2.5%. FTB rebate up to $4,000. Toronto adds an identical municipal LTT with a FTB rebate of $4,475.
BC: 1% on first $200K, 2% to $2M, 3% to $3M, 5% above. FTB exempt on homes <= $500K.
Alberta: No land transfer tax — only a land title transfer fee (~$50 + $1 per $5,000 of value).
Quebec: Welcome Tax (taxe de bienvenue) — graduated rates, typically 0.5%–2%.
Tips & Tricks to Reduce Land Transfer Tax
- Claim first-time buyer rebates: Ontario offers up to $4,000 back, and Toronto adds $4,475 on the municipal LTT. Combined, that's $8,475 in savings for FTBs in Toronto.
- Consider buying in Alberta: Alberta has no land transfer tax — only a small land title transfer fee. This can save $10,000+ on a typical home purchase.
- Negotiate closing date: LTT is due on closing. If cash is tight, negotiate a closing date that aligns with your pay cycle or tax refund.
Purchase
Used to calculate CMHC insurance
Location
What are closing costs?
Closing costs are the fees and expenses you pay on top of the home's purchase price when you finalize (close) the sale. In Canada, they typically range from 1.5% to 4% of the purchase price. As a newcomer, budgeting for these costs is critical — they are due at closing and cannot be financed into your mortgage (except CMHC insurance).
Key items: Land Transfer Tax (biggest cost in most provinces), legal fees ($1,500–$2,500), title insurance (~$300–$500), home inspection (~$400–$600), appraisal (~$300–$500), and property insurance (prepaid). Toronto buyers face a second municipal LTT. First-time buyers get rebates in Ontario and BC.
Tips & Tricks to Save on Closing Costs
- Budget 3–5% on top of the purchase price: Many newcomers are surprised by closing costs. Set aside this amount in a savings account early in your home search.
- Shop around for lawyers: Real estate lawyer fees can vary by $500–$1,000. Get 2–3 quotes. Some offer flat-rate packages that include title insurance.
- Skip the appraisal fee: Some lenders waive the appraisal fee for strong borrowers or use automated valuation. Ask your broker.
- Never skip the home inspection: A $400–$600 inspection can save you $10,000+ by uncovering hidden problems. Always inspect before waiving conditions.
Current mortgage
Renewal terms
Why does mortgage renewal matter?
In Canada, mortgage terms are typically 3–5 years, after which you must renew at whatever rate is available. A rate increase from 2.5% to 5.5% on a $400K balance can add $620+/month to your payment. Understanding this ahead of time helps you budget and decide whether to lock in early or shop around at renewal.
Tip: Start shopping for renewal rates 120 days before your term expires. Lenders can hold a rate for 90–120 days. You are not required to renew with your current lender.
Tips & Tricks for Mortgage Renewal
- Start shopping 120 days early: Most lenders can hold a rate for 90–120 days. Lock in early if rates are trending up — you can still take a lower rate if they drop.
- Use a mortgage broker: Brokers can access 30+ lenders and often find rates 0.25–0.50% below what your bank offers. On a $400K mortgage, that's $1,000–$2,000/year in savings.
- Switch to accelerated bi-weekly at renewal: Renewal is the perfect time to change your payment frequency without penalty. Accelerated bi-weekly adds one extra monthly payment per year, saving years off your mortgage.
- Consider a lump-sum payment at renewal: If you've saved extra, applying a lump sum when you renew reduces your balance before the new rate kicks in — lowering your payment for the entire new term.
How to use this tool
Enter at least 2 different purchase scenarios. Try varying the home price (e.g., $450K vs $550K), the down payment (5% vs 20%), or the interest rate (different lender quotes). The comparison table highlights the best and worst values across scenarios so you can see the trade-offs at a glance.
Tips & Tricks for Comparing Scenarios
- Compare 5% vs 20% down on the same home: See how CMHC insurance and higher monthly payments with 5% down compare to the opportunity cost of tying up more cash at 20% down.
- Test different lender rates: Even a 0.25% difference can save $15,000+ over 25 years. Always get at least 3 quotes from different lenders or brokers.
- Compare accelerated bi-weekly vs monthly: Set one scenario to monthly and another to accelerated bi-weekly with the same home — see the interest savings side by side.
Maximum $8,000/year
Your combined federal + provincial rate
Historical TSX avg ~7%; use 5–6% to be conservative
Lifetime limit: $40,000 total ($8K x 5 years)
FHSA vs. RRSP HBP — which is better?
The FHSA (launched 2023) is generally better for most first-time buyers. You get a tax deduction on contributions and tax-free withdrawal — unlike the RRSP HBP where you must repay the withdrawal over 15 years. The FHSA has a $40,000 lifetime limit and $8,000/year limit. Unused room carries forward one year. You can combine FHSA + HBP for maximum benefit. The account must be opened and used within 15 years of the first deposit, or by age 71.
Tips & Tricks to Maximize Your FHSA
- Open the account ASAP — even with $1: The 15-year clock starts when you open the FHSA. Opening it early preserves your carry-forward room even if you can't contribute the max immediately.
- Max out every year ($8,000): At a 33% tax rate, each $8,000 contribution saves you $2,640 in taxes. Over 5 years, that's $13,200 in tax savings alone — plus investment growth.
- Combine FHSA + HBP: You can use both programs for the same home purchase. FHSA ($40K) + HBP ($60K) = up to $100K tax-free toward your down payment per person ($200K for a couple).
- Invest inside the FHSA: Don't just hold cash. Use low-cost index ETFs or a balanced portfolio. Tax-free growth means your gains compound faster than in a non-registered account.
Current RRSP balance eligible for HBP
Maximum $60,000 per person
CRA mandates 15-year repayment
How does the HBP repayment work?
You have 2 years after the withdrawal year before repayments start, then must repay 1/15th of the withdrawn amount each year. If you skip a year's repayment, that amount is added to your taxable income for that year. Example: $60,000 withdrawn → $4,000/year repayment for 15 years. You and your spouse/partner can each withdraw up to $60,000 for a combined $120,000. The funds must have been in your RRSP for at least 90 days before withdrawal.
Tips & Tricks for Your HBP Strategy
- Contribute 90+ days before withdrawal: Funds must sit in your RRSP for at least 90 days to be eligible for HBP withdrawal. Plan ahead so you don't miss the closing date.
- Set up automatic repayments: Repayments start 2 years after withdrawal. Set up auto-contributions to your RRSP so you never miss a year (missed repayments become taxable income).
- Couples: use both HBPs: Each person can withdraw $60,000 for a combined $120,000. If your partner has RRSP room, contribute and withdraw strategically.
- Repay faster than required: You're only required to repay 1/15th per year, but paying more rebuilds your RRSP faster and saves you from losing that tax-sheltered room.
Renting today
Buying scenario
Rule of thumb: 1–2% annually
Assumptions
Canadian average ~3–5%
What does this calculation include?
Buying costs include: Mortgage payments (principal + interest), property taxes, maintenance, and CMHC premium if applicable.
Renting costs include: Monthly rent (growing with inflation) plus the opportunity cost of investing your down payment at a 5% return.
The analysis finds the break-even year — when the equity built through buying surpasses the investment gains from renting. In expensive Canadian cities, this is often 5–10 years.
Thinking about the property as an investment rather than only a place to live? Our real estate investing courses cover how the same numbers are underwritten for a rental — cap rate, DSCR, and cash flow instead of break-even.
Tips & Tricks for the Rent vs. Buy Decision
- Plan to stay 5+ years: With closing costs and transaction fees, buying usually only wins if you stay long enough for appreciation and principal paydown to exceed those costs.
- Rent and invest the difference: If renting is cheaper monthly, invest the savings in low-cost index funds. Over 10+ years, disciplined investing can rival homeownership returns.
- Factor in forced savings: Every mortgage payment builds equity. For newcomers who find saving difficult, the "forced savings" of a mortgage can be a powerful wealth-building tool.
- Don't forget lifestyle value: Owning gives stability — no landlord can raise rent or sell the home. For families with children, this certainty has real value beyond the numbers.
Home price minus down payment (+ CMHC if applicable)
Why does so much go to interest early on?
In the early years of a mortgage, the outstanding balance is highest — so each payment contains more interest. Over time, as the principal balance shrinks, a larger portion of each payment goes to principal. This is called amortization. Making even $100/month extra toward principal can shave years off your mortgage and save tens of thousands in interest. Some lenders allow 10–20% lump-sum annual prepayments without penalty.
Tips & Tricks to Accelerate Your Amortization
- Make one extra monthly payment per year: Switching to accelerated bi-weekly achieves this automatically — you make 26 half-payments (= 13 monthly payments) instead of 12. This alone can shave 3–4 years off a 25-year mortgage.
- Use your annual prepayment privilege: Most Canadian mortgages allow 10–20% lump-sum payments per year without penalty. Tax refunds, bonuses, and inheritance are ideal for this.
- Round up every payment: If your payment is $1,380, round up to $1,400 or $1,500. The extra goes straight to principal. Even $50/month extra saves thousands over 25 years.
- Increase payments at renewal: When you renew, keep your old (higher) payment amount even if the new rate is lower. The difference accelerates your principal paydown.
Calculator Disclaimer: These calculators provide estimates for educational purposes only. Results are approximate and should not be relied upon for financial decisions. Actual rates, payments, taxes, and insurance amounts may differ based on your specific circumstances. Canadian mortgage calculations use semi-annual compounding as required by the Interest Act. Always consult a licensed mortgage broker, financial advisor, or real estate professional for accurate figures.
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