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Calculate your monthly payment, total interest, CMHC insurance, and mortgage stress test. Updated for Canadian mortgage rules in 2026.
| Down Payment | Insurance Premium | On $600K Home | Added to Mortgage |
|---|---|---|---|
| 5% ($30,000) | 4.00% | $22,800 | Yes |
| 10% ($60,000) | 3.10% | $16,740 | Yes |
| 15% ($90,000) | 2.80% | $14,280 | Yes |
| 20%+ ($120,000) | 0% — No Insurance | $0 | No |
As of December 2024, CMHC insured mortgages are now available on homes up to $1.5 million (up from $1 million). First-time buyers purchasing new construction can also access 30-year amortization with insured mortgages.
To qualify for a Canadian mortgage, your lender stress tests you at the higher of: your contract rate + 2%, or 5.25%. Your GDS ratio must be 39% or less and TDS ratio 44% or less.
| Year | Annual Payment | Principal Paid | Interest Paid | Balance Remaining | Equity % |
|---|
| Province | On $600K Home | First-Time Buyer Rebate | Notes |
|---|---|---|---|
| Ontario | $8,475 | Up to $4,000 | +Toronto LTT if applicable |
| British Columbia | $8,000 | Up to $8,000 | PTT first-time buyer exemption |
| Quebec | $7,700 | Varies by city | Welcome Tax |
| Manitoba | $7,720 | Up to $2,000 | — |
| Nova Scotia | $9,000 | None | 1.5% flat rate |
| Alberta | $0 | N/A | No land transfer tax |
| Saskatchewan | $0 | N/A | Title transfer fee only (~$500) |
Canadian mortgage rates in early 2026 range from approximately 4.5–6.5% depending on the term and type. 5-year fixed rates are around 4.75–5.25%. Variable rates are typically lower but fluctuate with the Bank of Canada's overnight rate. Shop multiple lenders or use a mortgage broker to get the best rate.
The minimum down payment in Canada is 5% for homes up to $500K, then 5% on the first $500K + 10% on the remainder for homes up to $1.5M. For homes over $1.5M, the minimum is 20%. Putting down 20%+ eliminates CMHC mortgage insurance, saving thousands.
The Canadian mortgage stress test requires lenders to qualify you at the higher of your contract rate plus 2%, or 5.25%. This ensures you can still afford payments if rates rise. Your GDS ratio must stay under 39% at that rate.
For insured mortgages (less than 20% down), the maximum is 25 years (30 years for first-time buyers purchasing new construction as of December 2024). For conventional mortgages (20%+ down), most lenders allow up to 30 years.
Use both. The FHSA gives you a tax deduction on contributions (up to $8,000/year, $40,000 lifetime) AND tax-free withdrawals for a qualifying home purchase. After maxing FHSA, fill your TFSA. EQ Bank offers 3.75% on both TFSA and FHSA savings.
Most Canadian mortgages allow prepayment privileges: increase your payment by 10–20% annually, make lump-sum prepayments (typically 10–20% of original principal per year), switch to accelerated bi-weekly payments (saves about 2.5 years on a 25-year mortgage), or apply windfalls as lump sums.
Earn 3.75% on your down payment savings at EQ Bank (CDIC insured). Use KOHO for daily spending + 0.5% cashback to accelerate saving. Get $100 bonus with referral code BREMO2026.