Last updated: February 14, 2022
What this tool is all about:
Use the mortgage payment calculator to run different scenarios and find out how much your mortgage payment will be. Customize variables such as the down payment amount, mortgage rate, payment frequency, amortization, and choose between fixed or variable rate, to see the effects on your mortgage payment in Canada.
Before buying a property, it’s important to understand your carrying costs to ensure you can afford to commit to the purchase. This mortgage calculator will help you visualize your mortgage balance over time and offer insights on how to minimize the amount of interest you pay by making prepayments on your mortgage principal.
Disclaimer: Perch does not guarantee the accuracy of these results and should not be treated as a recommendation. Consult a professional prior to making any decisions as it relates to your current or future real estate transactions. Please refer to our Terms of Use for more information.
The mortgage calculator is an important tool to help you with understanding exactly what you can afford. Buying a home can be a daunting and financially intimidating task, so we have built this simple tool so you can see exactly how it will impact your monthly, semi-monthly, bi-weekly or weekly household budget. As you go through the house-hunting process, you can bookmark this page to quickly calculate the mortgage payment on any potential house purchase. Even if you’re not currently looking at properties, you can use this calculator for any property value amount just to see what the mortgage payment is like. An online mortgage affordability calculator can help reduce unwelcome surprises to your budget later.
The amortization schedule or amortization table shows your remaining mortgage balance over time. Every time you make a mortgage payment, some of that money goes towards paying the mortgage interest and the rest goes towards reducing your mortgage principal or loan amount. Eventually, your mortgage principal will reach zero, meaning you no longer owe money to the lender and now own the property in full!
If you want to buy a home with a down payment of less than 20%, you’ll need mortgage default insurance, which is commonly referred to as CMHC insurance. This protects your lender in case you can’t make your mortgage payments. There are three mortgage insurance providers in Canada: Canada Mortgage and Housing Corporation (CMHC), Sagen and Canada Guaranty Mortgage Insurance Company.
Your lender pays an insurance premium on mortgage loan insurance. This premium is calculated as a percentage of the overall mortgage and is based on the size of your down payment. Mortgage loan insurance premiums range from 0.6% to 4.50% of the amount of your mortgage. The bigger your down payment, the less you need to pay in mortgage loan insurance premiums. You can pay the insurance premium as a lump sum, or choose to add it to your regular mortgage payments.
In Canada, the minimum amount you need for your down payment is typically 5%. However, it also depends on the purchase price of your home.
| Purchase Price | Minimum down payment required |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $999,999 | 5% of the first $500,000 of the purchase price 10% of any portion of the purchase price above $500,000 |
| $1 million or more | 20% of the purchase price |
A second mortgage is an additional loan taken out on a property that is already mortgaged. Since they are in second position (hence their name), it means that if the homeowner defaulted on their payments and the property was taken into possession, the lender in first position would always be paid out first, whereas the lender in second position runs the risk of not being repaid. To compensate for this added risk, mortgage rates for second mortgages are always higher than for principal mortgages.
