What Is a Mortgage Calculator?
A mortgage calculator helps you estimate your monthly home loan payments based on the purchase price, down payment, interest rate, and loan term. It breaks down exactly how much goes toward principal, interest, property taxes, and insurance.
How to Use This Calculator
- Enter the home price — the total purchase price of the property
- Set your down payment — the amount you'll pay upfront (typically 5-20% in Canada)
- Choose a loan term — 25 years is standard in Canada, but shorter terms save interest
- Enter the interest rate — check current rates from your bank or mortgage broker
- Add property tax and insurance — annual amounts that factor into your monthly payment
Understanding Amortization
The amortization schedule shows how each year's payment splits between principal and interest. In early years, most of your payment goes to interest. Over time, more goes toward paying down the principal — this is why making extra payments early can save you thousands.
Canadian Mortgage Tips
- Minimum down payment: 5% for homes under $500K, 10% for the portion above $500K
- CMHC insurance: Required if your down payment is less than 20%
- Stress test: Banks qualify you at the higher of your rate + 2% or 5.25%
- Term vs. amortization: The term (typically 5 years) is different from the amortization period (up to 25-30 years)
Privacy
All calculations happen directly in your browser — your financial data never leaves your device.