Calculate your down payment requirements, estimated monthly mortgage payments, and total homeownership costs.
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Use our free Canadian mortgage calculator to estimate your monthly mortgage payments, understand down payment requirements, and plan your home purchase budget. Whether you're buying in Metro Vancouver, Fraser Valley, or anywhere in BC, this calculator provides accurate mortgage estimates based on Canadian lending rules.
In Canada, your minimum down payment depends on your home's purchase price:
5% minimum on the first $500,000 of the purchase price
10% minimum on the portion between $500,000 and $1,000,000
20% minimum for homes over $1,000,000 (no mortgage insurance available)
CMHC (Canada Mortgage and Housing Corporation) insurance is required when your down payment is less than 20%. This mortgage default insurance protects the lender if you default on your mortgage.
Amortization is the total length of time it will take to pay off your mortgage. In Canada, common amortization periods are:
Beyond your down payment and monthly mortgage, budget for these closing costs:
I work with trusted mortgage brokers and lenders to help you secure the best financing for your home purchase. Get expert advice on mortgage pre-approvals, down payment strategies, and first-time buyer programs. Let's discuss your home buying goals.
Calculate your BC Property Transfer Tax instantly for first-time buyers, citizens, and foreign buyers.
Find out how much house you can afford using GDS/TDS ratios and the Canadian stress test.
Estimate all closing costs beyond the purchase price including legal fees and inspections.
Compare the true cost of renting versus buying a home in BC over 5, 10, and 25 years.
Learn key BC real estate terms for buying, selling, and investing in British Columbia.
As of April 2026, the Bank of Canada benchmark rate remains at 5.25% for stress test purposes. Five-year fixed mortgage rates from major lenders typically range from 4.8% to 5.2%, depending on your credit profile and lender. Variable rates sit approximately 0.75% to 1.25% below fixed rates. Rates fluctuate daily based on market conditions and the Bank of Canada's policy decisions, so securing a pre-approval locks your rate for a specific period—typically 90-120 days.
The mortgage stress test requires borrowers to qualify at a higher rate than their actual contract rate. You must qualify at either your contract rate plus 2% or the 5.25% Bank of Canada benchmark rate, whichever is higher. This prudent lending practice protects both lenders and borrowers from rate shock. For example, if you're qualifying for a $500,000 mortgage at 4.9%, you must prove you can afford payments at 6.9%. This typically reduces borrowing capacity by 15-20% compared to qualifying at the contract rate alone.
CMHC (Canada Mortgage and Housing Corporation) insurance is required when your down payment is less than 20% of the purchase price. The insurance cost ranges from 0.6% to 4.5% of your mortgage amount, depending on your loan-to-value (LTV) ratio. At 5-9% down, expect to pay approximately 3.9% in premiums; at 10-14% down, approximately 2.8%; at 15-19% down, approximately 1.8%. While it increases your mortgage amount, CMHC insurance allows buyers to purchase with smaller down payments—critical for BC's competitive market where saving 20% takes considerable time.
Fixed rates lock your payment for your entire term—typically 3, 5, 7, or 10 years—providing payment stability and protection if rates increase. Variable rates fluctuate with prime rate changes, often starting 0.75%-1.25% lower than fixed rates, but carry uncertainty. Fixed rates suit borrowers who value certainty and expect rates to rise; variable rates benefit those with short timelines or expecting rate decreases. Fraser Valley and Metro Vancouver markets are diverse—your choice depends on risk tolerance, timeline, and market outlook. I recommend discussing both options with a mortgage professional before deciding.
Your borrowing capacity depends on gross household income, existing debts, down payment, and current rates. Lenders use two ratios: GDS (Gross Debt Service) cannot exceed 39%, meaning housing costs shouldn't exceed 39% of gross income; TDS (Total Debt Service) cannot exceed 44%, including all debts like car loans and credit cards. As a general rule, you can borrow 4-5 times your annual household income after stress test qualification. A household earning $120,000 annually might qualify for a $480,000-$600,000 mortgage. Use our free calculator above to determine your exact borrowing capacity based on your situation.