Free tool · Canada
Mortgage Calculator + Stress Test
See your monthly payment, total interest, CMHC insurance and the rate you must qualify at under the mortgage stress test.
Your term is how long the rate is locked — usually 5 years. The amortization is how long the loan runs in total.
Pay it off early
Set a target and the plan works out the extra it takes. Leave it blank to just compare amounts.
To qualify (income test)
Monthly payment
$3,594.97
Mortgage amount
$649,530
Total interest
$428,962
CMHC insurance
$19,530
Household income needed to qualify
$156,432
Housing costs / mo
$5,084.04
By GDS (39%)
$156,432
By TDS (44%)
$138,656
Lenders qualify you at the stress rate (6.50%) and cap housing costs at 39% of gross income and total debts at 44%. You need the higher of the two.
Paying it off early
Every extra dollar goes straight at the principal, so it also removes all the future interest that dollar would have carried. That is why the first hundred a month buys far more than the fifth.
| Extra / month | Paid off in | Years saved | Interest saved |
|---|---|---|---|
| Nothing extra | 25 yrs | — | — |
| $200+6% | 22.8 yrs | 2.3 | $44,596 |
| $400+11% | 20.8 yrs | 4.2 | $80,406 |
| $700+19% | 18.6 yrs | 6.4 | $122,731 |
| $1,000+28% | 16.8 yrs | 8.3 | $155,601 |
| $2,000+56% | 12.8 yrs | 12.3 | $226,921 |
| $3,000+83% | 10.3 yrs | 14.8 | $268,309 |
Most Canadian lenders let you increase the payment by 15–20% a year and put down a lump sum of 15–20% of the original principal without penalty. The exact limits are in your mortgage agreement — going over them can cost more than the interest you save.
Put an amount in Extra per payment or Lump sum and the year-by-year effect on interest, principal, balance and equity appears here, next to the plan without it.
Stress test
To qualify, lenders test you at 6.50% (the greater of your rate +2% or 5.25%). At that rate your payment would be $4,350.71/month — make sure your budget can handle it.
With less than 20% down, CMHC mortgage insurance of $19,530 is added to your loan. Put 20% down to avoid it.
Keep this plan
Print it or have the PDF emailed — either way you get the payment, the full year-by-year schedule, the renewal figures and what prepaying is worth.
Your complete plan
The whole life of this mortgage — where every payment goes, what you still owe at renewal, and what paying extra is worth.
Cash you need on closing day
| Down payment | $70,000 |
| Ontario land transfer tax | $10,475 |
| Toronto municipal land transfer taxCharged on top of the provincial tax | $10,475 |
| PST on mortgage insurance (8%)Cannot be added to the loan — payable in cash | $1,562 |
| Legal, title insurance, inspection & registrationAn estimate — ask your lawyer for a quote | $2,500 |
| Total cash required | $95,012 |
Closing costs add $25,012 on top of your down payment — 36% more cash than the down payment alone. Land transfer tax and PST are statutory; the legal and inspection figure is an estimate you can change.
What it costs each month
| Mortgage payment | $3,594.97 |
| Property tax | $583.33 |
| Heating | $150.00 |
| Home insurance | $120.00 |
| Total | $4,448.31 |
The mortgage payment is 81% of it. Excludes maintenance, utilities beyond heating, and closing costs.
Balance owing against interest paid
Year · ends owing $0 after $428,962 of interest
What this actually means
Most of your early payments are interest
Not until payment 115 — year 10 — does more of your money go to the loan than to the lender. Over the first five years, 63% of everything you pay is interest ($136,432).
Half paid off takes longer than half the time
The balance first falls below half the original loan in year 16 of 25 — the principal barely moves at the start.
Your rate expires after 5 years, the mortgage doesn't
Making only the required payments you would still owe $570,264 when the term ends, with 20 years left to refinance. Of everything paid in that term, $136,432 is interest and only $79,266 reduces the loan.
Prepayment is the strongest lever you have
Every extra dollar goes straight at the principal, removing all the future interest that dollar would have carried. Put an amount in Extra per payment to price it.
CMHC insurance costs you $19,530
With under 20% down it is added to the loan, so you pay interest on it for the whole amortization rather than once. Reaching 20% down removes it entirely.
Lenders test you at 6.50%, not 4.5%
At the stress rate your payment would be $4,350.71 a month, and you need a household income of about $156,432 to qualify.
If you renew at a different rate
20 years left on $570,264 still owing after your 5-year term.
| Renewal rate | 2.5% | 3.5% | 4.5% | 5.5% | 6.5% | 7.5% |
|---|---|---|---|---|---|---|
| New payment | $3,018 | $3,300 | $3,595 | $3,903 | $4,223 | $4,554 |
| Change | -$577 | -$295 | +$0 | +$308 | +$628 | +$959 |
Year by year
| Year | Interest | Principal | Balance | Equity |
|---|---|---|---|---|
| 1 | $28,665 | $14,475 | $635,055 | $14,475 |
| 2 | $28,006 | $15,133 | $619,922 | $29,608 |
| 3 | $27,318 | $15,822 | $604,100 | $45,430 |
| 4 | $26,598 | $16,542 | $587,559 | $61,971 |
| 5 | $25,845 | $17,295 | $570,264 | $79,266 |
| 6 | $25,058 | $18,082 | $552,182 | $97,348 |
| 7 | $24,235 | $18,904 | $533,278 | $116,252 |
| 8 | $23,375 | $19,765 | $513,513 | $136,017 |
| 9 | $22,476 | $20,664 | $492,849 | $156,681 |
| 10 | $21,535 | $21,605 | $471,244 | $178,286 |
| 11 | $20,552 | $22,588 | $448,657 | $200,873 |
| 12 | $19,524 | $23,616 | $425,041 | $224,489 |
| 13 | $18,449 | $24,690 | $400,351 | $249,179 |
| 14 | $17,326 | $25,814 | $374,537 | $274,993 |
| 15 | $16,151 | $26,988 | $347,549 | $301,981 |
| 16 | $14,923 | $28,217 | $319,332 | $330,198 |
| 17 | $13,639 | $29,501 | $289,832 | $359,698 |
| 18 | $12,297 | $30,843 | $258,989 | $390,541 |
| 19 | $10,893 | $32,247 | $226,742 | $422,788 |
| 20 | $9,426 | $33,714 | $193,028 | $456,502 |
| 21 | $7,891 | $35,248 | $157,780 | $491,750 |
| 22 | $6,287 | $36,852 | $120,928 | $528,602 |
| 23 | $4,610 | $38,529 | $82,398 | $567,132 |
| 24 | $2,857 | $40,283 | $42,116 | $607,414 |
| 25 | $1,024 | $42,116 | $0 | $649,530 |
Equity here is the loan you've repaid plus your down payment — it assumes the property's value doesn't change.
An estimate using the Canadian semi-annual compounding convention. It assumes one rate for the whole amortization, which no Canadian mortgage offers — see the renewal figures above. Excludes land transfer tax, legal fees, title insurance, inspection and any PST on the CMHC premium, all payable at closing and varying by province. Lender rules differ. Not financial advice.
The stress test
Federally regulated lenders must check you can afford payments at the greater of your contract rate + 2% or 5.25%. Passing the stress test is required to get the mortgage — budget for that higher payment.
Down payment & CMHC
Minimum down is 5% on the first $500k, 10% on the portion from $500k–$1.5M, and 20% above $1.5M. Under 20% down requires CMHC insurance, added to your loan. Canadian mortgages compound semi-annually, which this tool uses.
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