Updated 2026-09-26

Simulate your real estate loan instantly 🇨🇦 Canada

Buying a home Canada costs more than the asking price: on a property of CA$500,000.00, acquisition costs come to roughly CA$34,300.00, or 6.9 % of the price. The heaviest items are gst / hst (CA$25,000.00), land transfer tax (CA$7,500.00), legal fees (CA$1,500.00). These are paid in cash on top of the deposit rather than borrowed, which is the usual surprise for a first-time buyer. On the financing side, at the average rate of 5.5 % currently observed, borrowing over 20 years after a deposit of CA$50,000.00 gives a monthly payment of about CA$3,223.00 including insurance. The calculator below takes those same figures and recalculates them on your own price, deposit and term, with the fees broken out line by line, because that is where most of the difference between one country and another actually sits, not in the interest rate.

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Parameters

Adjust the sliders to update the simulation

Property price500,000 C$

5,000 C$2,000,000 C$

Down payment50,000 C$ (10%)

0 C$450,000 C$

Property type

Loan duration20 years (240 months)

1 years30 years

Interest rate5.5 %

0.1 %15 %

Borrower's insurance0.34 %

0 %1 %

Loan amountCA$450,000.00

Loan paymentCA$3,095.49

Insurance / monthCA$127.50

Monthly paymentCA$3,222.99

Total feesCA$34,300.00

Monthly payment

CA$3,222.99

incl. CA$127.50 insurance

Total loan cost

CA$323,518.29

interest + insurance

Total fees

CA$34,300.00

4 fee

Total cost of ownership

CA$357,818.29

Principal + Interest + acquisition fees

Acquisition

New build

fees breakdown 🇨🇦 Canada

Fee	Rate	Amount
Land transfer tax	1.50%	CA$7,500.00
GST / HST	5.00%	CA$25,000.00
Legal fees	0.30%	CA$1,500.00
Title insurance	-	CA$300.00
Total fees	6.9%	CA$34,300.00

Cost breakdown

Expensive

Principal 61%

Interest 39%

Borrowed principal

CA$450,000.00

Interest cost

CA$292,918.29

Chart analysis

Evolution of outstanding balance, repaid principal, and cumulative interest over time.

Remaining balance

Cumulative interest

Repaid principal

Amortization schedule

Year-by-year repayment breakdown

20 years

Year	Principal repaid	Interest paid	Total paid	Remaining balance
1 Year 1	CA$12,713.22	CA$24,432.70	CA$37,145.91	CA$437,286.78
2 Year 2	CA$13,430.34	CA$23,715.57	CA$37,145.91	CA$423,856.44
3 Year 3	CA$14,187.92	CA$22,957.99	CA$37,145.91	CA$409,668.52
4 Year 4	CA$14,988.23	CA$22,157.68	CA$37,145.91	CA$394,680.29
5 Year 5	CA$15,833.69	CA$21,312.23	CA$37,145.91	CA$378,846.60

Loan details

Property priceCA$500,000.00

Down paymentCA$50,000.00

Loan amountCA$450,000.00

Annual rate5.5%

Payment schedule

Term20 years

No. of payments240

Loan paymentCA$3,095.49

Total paymentCA$3,222.99

Loan cost

Total interestCA$292,918.29

Total insuranceCA$30,600.00

Acquisition feesCA$34,300.00

Total cost of ownershipCA$357,818.29

Mortgage Calculator 2025 – Stress Test & Rates in Canada

Simulate your mortgage with OSFI stress test, CMHC insurance and land transfer tax by province. Monthly payment and full amortization schedule included.

Buying a Home in Canada: Essential Guide

The Canadian real estate market varies dramatically by province, with Toronto and Vancouver being the most expensive markets. The purchase process starts with mortgage pre-approval, which locks in a rate for 90-120 days. Canadian mortgages are distinctive: the maximum amortization is 25 years for insured mortgages (down payment less than 20%) and 30 years for uninsured ones, but the mortgage term is typically only 5 years, after which you must renew at prevailing rates. Buyers with less than a 20% down payment must purchase mortgage default insurance through CMHC, Sagen, or Canada Guaranty, which can add 2.8-4% of the loan amount. Acquisition costs include land transfer tax (which varies by province), legal fees (1,500-2,500 CAD), title insurance (300-500 CAD), and home inspection (400-600 CAD). First-time buyers in some provinces benefit from land transfer tax rebates.

Canadian Mortgage Rates and the Stress Test

One of the most important aspects of Canadian mortgages is the mortgage stress test, introduced to ensure borrowers can handle rate increases. To qualify, you must prove you can afford payments at the higher of your contract rate plus 2% or the Bank of Canada's benchmark rate (currently around 5.25%). This significantly reduces buying power compared to the actual mortgage rate. Canada offers both fixed-rate and variable-rate mortgages. Fixed rates are based on government bond yields, while variable rates track the Bank of Canada's policy rate. The 5-year fixed term is the most popular choice. Beyond interest rates, consider the GST/HST implications: new construction is subject to GST (5%) or HST (13% in Ontario), though rebates may apply. Resale homes are generally exempt from GST/HST. Some provinces also levy their own property transfer taxes, with British Columbia and Ontario being the most expensive.

Frequently Asked Questions:Buying a Home in Canada

What is the minimum down payment in Canada?

The minimum down payment in Canada depends on the purchase price: 5% for homes up to 500,000 CAD, 10% on the portion between 500,000 and 1,499,999 CAD, and 20% for homes priced at 1.5M CAD or more. Down payments below 20% require mortgage default insurance (CMHC insurance), which adds a premium of 2.8-4% of the loan amount to your mortgage.

What is the mortgage stress test in Canada?

The mortgage stress test requires all federally regulated lenders to qualify borrowers at a rate higher than their actual contract rate – specifically the greater of your contract rate plus 2% or the Bank of Canada's qualifying rate. This means even if your mortgage rate is 5%, you must prove you can afford payments at 7%. The stress test reduces your maximum purchasing power by roughly 20-25% compared to qualifying at the actual rate.

How does land transfer tax work in Canada?

Land transfer tax varies by province. In Ontario, it is calculated on a tiered basis from 0.5% to 2.5%, and Toronto adds a municipal land transfer tax on top. British Columbia charges 1-3% with an additional surcharge for foreign buyers. Alberta, Saskatchewan, and rural Nova Scotia have no land transfer tax but charge smaller registration fees. First-time buyers may qualify for rebates in several provinces.

Real Estate Glossary:Canada

CMHC Insurance (Mortgage Default Insurance)

Insurance required when the down payment is less than 20% of the purchase price. Provided by CMHC, Sagen, or Canada Guaranty, it protects the lender against borrower default. The premium (2.8-4% of the loan amount) is typically added to the mortgage balance.

Mortgage Term vs Amortization

In Canada, the mortgage term (typically 5 years) is the period during which your interest rate and conditions are locked in. The amortization (up to 25 or 30 years) is the total time to fully repay the loan. At the end of each term, you must renew your mortgage.

Land Transfer Tax

A provincial tax paid when purchasing real estate in Canada. Rates and structures vary by province, with some provinces (like Ontario and BC) charging tiered rates based on the purchase price. Some provinces offer rebates for first-time buyers.

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🇫🇷France 🇺🇸United States 🇬🇧United Kingdom 🇩🇪Germany 🇯🇵Japan 🇦🇺Australia 🇮🇹Italy 🇪🇸Spain 🇨🇭Switzerland 🇲🇦Morocco