Monthly payment, true cost (APR), fixed or variable rate risk and how much you can afford, with the rules that apply in Canada.
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For a mortgage of 600,000 CAD over 25 years at 4.69%, the monthly payment is about 3,384.51 CAD. Change the amount, term and rate in the calculator above to see your own payment.
The APR includes fees and required costs on top of interest. In our example with typical fees the APR is 4.64% while the nominal rate is 4.69%. Compare loans by the APR and by the total amount you repay.
Canadian variable mortgages follow your lender's prime rate, 4.45% in October 2026, minus or plus a set discount. The Bank of Canada rate is 2.25%, so variable is currently cheaper than fixed, but it moves with every rate decision. If rates rose by 2 points, the payment in our example would go up to 4,088.30 CAD. A fixed rate protects you from that risk, a variable rate can be cheaper when rates fall.
To qualify you must pass the stress test at the higher of 5.25% or your rate plus 2 points. At that rate your housing costs (GDS) should stay below 39% and all debts (TDS) below 44% of gross income. The calculator runs the stress test when you enter your gross monthly income.
Canadian mortgages are usually signed for a 5 year term inside a 25 year amortization, and fixed rates are compounded semi-annually, not monthly. To qualify you must pass the stress test at the higher of 5.25% or your rate plus 2 points. The calculator uses semi-annual compounding for fixed mortgages, just like Canadian lenders.
The nominal interest rate only covers interest. The APR adds the fees and costs you must pay to get the loan, such as processing fees, account fees and required insurance, and turns everything into one yearly percentage. Two loans with the same interest rate can have very different APR. When you compare offers for the same amount and term, the lower APR is usually the cheaper loan.
A fixed rate keeps your payment the same for an agreed period, so you know exactly what you pay. A variable rate is a reference rate (for example Euribor) plus the bank's margin. It is often lower at the start, but your payment rises when the reference rate rises. Use the stress test above to see your payment if rates go up by 1, 2 or 3 points, and only choose variable if you could still pay that.
With equal payments (annuity) the monthly amount stays the same, and at the start most of it is interest. With equal principal the first payments are higher but fall every month, and you pay less interest in total. Switch the repayment option in the calculator to see the difference.
Look beyond the monthly payment. Add up interest, upfront fees, monthly account and insurance costs, valuation and notary costs. A longer term lowers the payment but increases the total interest a lot. The line "cost per 100 borrowed" shows how much you pay for every 100 you borrow.
Paying off part of the loan early saves interest. Many countries limit what banks may charge for it, and variable-rate loans can often be repaid without a fee. Read the early repayment clause before you sign.
Typical mortgage at today's average rate, equal monthly payments, without fees. Interest rate: 4.69%.
| Amount | Term (years) | Monthly payment | Total interest |
|---|---|---|---|
| 400,000 CAD | 25 | 2,256.34 CAD | 276,901 CAD |
| 600,000 CAD | 25 | 3,384.51 CAD | 415,352 CAD |
| 800,000 CAD | 30 | 4,122.61 CAD | 684,140 CAD |
Most closed mortgages let you prepay 10% to 20% a year without a penalty. Breaking a variable mortgage usually costs 3 months' interest. Breaking a fixed mortgage costs the greater of 3 months' interest or the interest rate differential, which can be large.
In October 2026 the best 5 year fixed mortgages in Canada cost about 4.34%, big bank rates 4.69% to 5.19%, and variable rates about 3.3% to 3.4%. Personal loans usually cost 8% to 12%.
No. It is an educational calculator. Your bank sets the final rate and costs. Use the results to understand and compare offers, and ask for the official pre-contract information before signing.
This page is educational. Rates are examples based on central bank statistics and published offers in October 2026, and your bank will price your loan individually. Always compare the official offer document (ESIS or standard information form) before you sign.