Canada Mortgage Calculator — Plan Your Home Purchase
Calculate monthly mortgage payments for Canadian home purchases. Factor in CMHC insurance stress test requirements and current Bank of Canada rates.
Canadian mortgages work differently from US mortgages. Most Canadian mortgages have 5-year fixed terms that renew rather than 30-year fixed rates. The CMHC stress test requires you to qualify at a rate 2% above your contract rate or 5.25% whichever is higher. Down payments below 20% require CMHC mortgage insurance adding 2.8-4% to your loan amount. Understanding these rules is essential for budgeting your Canadian home purchase.
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Key Information
| Parameter | Details |
|---|---|
| Average 5-Year Fixed Rate | 4.5% - 5.5% (2026) |
| CMHC Insurance (10-14.99% down) | 3.10% of mortgage |
| CMHC Insurance (15-19.99% down) | 2.80% of mortgage |
| Maximum Amortization (insured) | 25 years |
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Use Calculator NowFrequently Asked Questions
How much mortgage can I afford in Canada?
Canadian lenders use two ratios: Gross Debt Service (GDS) should not exceed 39% of income and Total Debt Service (TDS) should not exceed 44%. On a $100000 household income with no other debts you can qualify for approximately $450000-$500000 mortgage depending on the rate and amortization period. The stress test at higher rates reduces this amount.
How does CMHC insurance work?
If your down payment is less than 20% you must purchase CMHC mortgage insurance. The premium is 2.80-4.00% of the mortgage amount added to your loan. On a $500000 home with 10% down ($50000) the mortgage is $450000 and CMHC premium is $13950 making your total mortgage $463950. This protects the lender not you.
What is the Canadian mortgage stress test?
The stress test requires you to qualify at the higher of your contract rate plus 2% or the Bank of Canada qualifying rate (currently 5.25%). If your actual rate is 4.5% you must prove you can afford payments at 6.5%. This reduces your maximum borrowing amount by approximately 20% compared to qualifying at the actual rate.
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Last updated: 24 March 2026