Canada 💰 CAD Last updated2026-05-28

Mortgage Calculator Canada

⚡

Quick answer (Canada)

A C$500,000 mortgage at 5% over a 25-year amortization works out to a monthly payment of about $2,923, with total interest of $376,885 over the full term.

🏠

Mortgage Calculator

CAD

Home Value

LTV 80% · No PMI ✓

Loan Amount

Interest Rate

Term

Total Monthly

$3,756

PITI

Principal + Interest

$2,923

43% goes to interest

Total Interest

$376,885

over 25 years

Monthly Breakdown

Principal & Interest$2,923

Property Tax (1.1%/yr)$573

Homeowner's Insurance (0.5%/yr)$260

Total Monthly$3,756

Principal vs Interest Split

57% principal

43% interest

✨ Live recalculation·Includes P&I, property tax, insurance. Estimates only — consult a licensed lender for exact rates.

Reviewed by

Aisha Rahman, CFP®, MBA LinkedIn ↗

CFP® with 12+ years in mortgage & retirement planning.

Local context

Mortgages in Canada

Typical loan

$500,000

in Canada

Typical rate

5% p.a.

prime borrower, 2026

Typical term

25 years

most common

Market overview

Canadian mortgages are amortized over 25-30 years but with shorter fixed-rate terms (typically 1, 3, or 5 years) — meaning you renew the mortgage rate every few years. Top lenders include RBC, TD, Scotiabank, BMO, and CIBC. Following Bank of Canada rate cuts in late 2024-2025, 5-year fixed rates have settled around 4.5-5.5%.

Why 5% is the typical rate

5.0% is the typical 5-year fixed insured-mortgage rate. Variable rates (tied to prime, currently ~6%) and uninsured-mortgage rates are typically higher.

Tax & regulatory notes

No mortgage interest deduction for primary residences. Canada Mortgage and Housing Corporation (CMHC) insurance is mandatory below 20% down payment (premium added to mortgage). First-Time Home Buyer Incentive provides 5-10% shared equity. Land Transfer Tax applies provincially.

Local banks

Canada mortgage rates by bank

The main mortgage lenders in Canada, with indicative 2026 rates and typical loan-to-value caps. Rates vary by borrower profile, residency and property type — use the calculator above with each bank's quoted rate to compare your real monthly payment.

RBC (Royal Bank of Canada)

4.3–5.3% LTV up to 95% (CMHC-insured)

Canada's largest mortgage lender. Five-year fixed terms on 25-year amortizations are the standard product; posted rates run higher than the discretionary rates most borrowers actually negotiate.

TD Canada Trust

4.3–5.4% LTV up to 95% (insured)

Second-largest book, known for flexible prepayment privileges and a HELOC (FlexLine) commonly stacked with the mortgage. Like all federally regulated lenders, applicants must pass the B-20 stress test at the higher of contract+2% or 5.25%.

Scotiabank & BMO

4.4–5.5% LTV up to 95% (insured)

Aggressive on rate matches and cash-back offers, and strong in the newcomer segment (Scotia StartRight, BMO NewStart) — relevant for recent immigrants without Canadian credit history.

Monoline lenders & brokers

4.1–5.1% LTV up to 95% (insured)

First National, MCAP and other broker-channel lenders often undercut the Big Six by 10–30 bps on identical insured mortgages. Roughly half of Canadian mortgages now originate through brokers.

Indicative rates compiled from public bank disclosures and central-bank data for 2026; not a quote or an offer of credit. Confirm current terms directly with the lender.

🧮 Worked example

A C$500,000 mortgage at 5% over a 25-year amortization

Loan amount

$500,000

Annual interest rate

5%

Term

25 years (300 months)

Monthly payment

$2,923

Total interest paid

$376,885

Total paid (principal + interest)

$876,885

❓ FAQ (Canada)

Common questions in Canada.

What is the difference between amortization and term in Canadian mortgages?

Amortization is the total time to pay off the mortgage (typically 25-30 years). Term is the period your current rate is locked (typically 5 years). You'll renew at the end of each term, potentially at a different rate, until amortization completes.

How much down payment is needed in Canada?

Minimum 5% for homes up to $500K, 10% on the portion $500K-$1.5M, and 20% above $1.5M. Below 20% triggers mandatory CMHC mortgage insurance (premium of 2.8-4% added to the loan).

Stress test: what is it?

Canadian banks must qualify you at the higher of (a) your contracted rate + 2%, or (b) 5.25%. This ensures you can still afford payments if rates rise. As of mid-2026 this remains the qualifying benchmark.

🌍 Other countries