Example$1,080,000 home · 20% down · 5.49% rate · 25-year amortization · Ontario

Home/Mortgage·Buy vs Rent
Hold:
Mortgage Details
Down$216,000
10yr Total$-
🏠Property
Home Price
$
Down Payment
Amount (20%)?
$
Mortgage Rate
% / yr
Amortization
Closing Costs?
$
💸Monthly Costs
Property Tax / yr
$
Condo / HOA / mo
$
Home Insurance / mo
$
Heating / mo?
$
Maintenance / mo?
$
📈Market Assumptions
Home Appreciation / yr
%
🏢Rent Alternative
Equivalent Monthly Rent
$
Rent Increase / yr
%
✦ AI rate & city benchmark
Mortgage /mo
$-
25yr amort.
Fees & Costs /mo
$-
tax + condo + ins.
Total /mo
$-
all-in monthly cost
🇨🇦Canada: CMHC mortgage insurance required for down payments under 20% (max purchase price $1.5M). First-time buyers may qualify for the First Home Savings Account (FHSA) and Home Buyers' Plan (HBP). Land transfer tax applies in most provinces.
🏦STRESS TEST CHECK
What is the Stress Test?

Canadian lenders (OSFI B-20) must qualify you at a higher rate than your contract rate, to ensure you can still afford payments if rates rise.

OSFI B-20 requires max(contract + 2%, 5.25%)
How your qualifying rate is calculated:
Your rate5.49%+ 2%= 7.49%
vs floor
minimum5.25%
→ use higher →
7.49%
Your gross annual income
$
Before taxes and deductions
Partner's gross annual income (optional)
$
Leave at 0 if applying solo
Monthly debt obligations
$
Credit cards, car loans, student loans, etc.
Not qualifying yet
Your current loan and debt levels are above stress-test limits. Try reducing loan size, debt, or increasing income.
85.4%
/39%
GDS
Over limit
93.2%
/44%
TDS
Over limit
GDS limit
85.4% / 39%
TDS limit
93.2% / 44%
Actual Payment
$5,301
At 5.49%
Stress Test Payment
$6,379
At 7.49%
Maximum You Can Borrow
$309,252
Max home price (20% down): $386,565
📚 New here? Key concepts
GDS (Gross Debt Service) ≤ 39%: Your housing costs (mortgage P+I, property tax, heating, condo fees) divided by your gross income.
TDS (Total Debt Service) ≤ 44%: Same as GDS, plus all other debt payments (car loans, student loans, credit cards).
Both ratios use the qualifying rate, not your actual rate - this is the stress test. If you pass at the higher rate, you qualify.
Stress test applies to new purchases and refinances, but NOT renewals with the same lender.

Keep your numbers moving

Jump into related tools with your next best calculation.

About this calculator

Updated April 2026

The Canadian mortgage calculator shows monthly payments, amortization schedule, and total interest cost for any home price, down payment, and rate - with the OSFI stress test built in. It supports all provinces for land-transfer tax and layers CMHC default insurance automatically when your down payment is below 20%.

What you can do with it

  • Compare fixed vs variable rates side-by-side with total interest projections.
  • See how an extra $100/month or lump-sum prepayment shortens your amortization.
  • Model what happens at renewal if rates stay flat, drop 1%, or rise 2%.
  • Estimate total cash-to-close including land-transfer tax and legal fees.

How the math works

Payments use the standard Canadian mortgage formula with semi-annual compounding for fixed-rate mortgages (monthly for variable). The stress test qualifies you at the greater of your contract rate + 2% or the 5.25% benchmark floor. CMHC premiums range from 2.80% at 15–19.99% down to 4.00% at 5–9.99% down, added to principal. First-time buyer rebates are reflected in the province-specific land-transfer tax calculations.

Canadian context - 2026

A 25-year amortization is the maximum for insured mortgages; 30-year insured is available for first-time buyers on new builds since 2024. Bank of Canada prime is at 4.95% (April 2026) - verify current rates before locking in.

Frequently asked questions

What is the mortgage stress test in Canada?

Federal rules require lenders to qualify borrowers at a higher rate than your contract rate (or a minimum floor), to ensure payments remain affordable if rates rise. The calculator can illustrate stress-tested payments for planning.

How does buy vs rent work here?

The tool compares the long-term cost of owning (including mortgage, taxes, insurance, and opportunity cost of a down payment) with renting, using assumptions you enter. Results depend heavily on those inputs.

Are CMHC premiums included?

When applicable, mortgage default insurance premiums can be modeled so you see their effect on payments and total cost. Actual lender rules may differ.

Long-form explainers that pair with this calculator.