🇨🇦 Canada 💰 CAD Last updated2026-05-13

Mortgage Calculator Canada 🇨🇦

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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.

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Mortgage Calculator

Live

Loan Amount

Interest Rate

Term (years)

Monthly Payment

$1,996

/month

Total Interest

$418,527

58% of total

Total Paid

$718,527

over 30 years

Principal vs Interest Split

42% principal

58% interest

✨ Live recalculation·Includes principal + interest only (no taxes or PMI)

🇨🇦 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.

🧮 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.

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