Residential Calculators

Canadian mortgages compound semi-annually by law (Interest Act). This means the effective monthly rate is calculated as: (1 + annual rate ÷ 2)^(1/6) − 1, not simply annual rate ÷ 12 as in the US. At 4.5%, this gives a monthly rate of ~0.3704% vs. 0.375% — a difference that adds up over 25 years. Your GDS ratio (housing costs ÷ gross income) should stay below 39%, and TDS (all debts ÷ income) below 44%.

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%.

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).

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%.

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.

You have 2 years after the withdrawal year before repayments start, then must repay 1/15th of the withdrawn amount each year.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 Example: $60,000 withdrawn → $4,000/year repayment for 15 years.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.

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.

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.