Disclaimer: This calculator is provided for general information only and does not take into account your personal objectives, financial situation or needs. It is not credit advice. You should obtain and consider the relevant Product Disclosure Statement (PDS) and seek independent, professional advice before making any decisions.
Our Canadian mortgage calculator helps you estimate your monthly mortgage payments and total loan costs with IFRS 9 compliance. Follow these steps to get accurate results:
Step 1: Enter Basic Loan Information
Property Price
- Enter the total purchase price of the home
- Include any closing costs if you want them factored into your total cost
- Use the actual price you're paying, not the listing price
- Range: $50,000 to $10,000,000+
Down Payment
- Enter the amount you'll pay upfront
- Aim for 20% to avoid CMHC insurance
- Include any earnest money or deposits
- Minimum: 5% for most lenders (higher CMHC costs)
Interest Rate
- Use the posted rate from your lender
- Canadian law requires semi-annual compounding
- Compare rates from multiple lenders for the best deal
- Range: 1.00% to 15.00%
Mortgage Term
- Choose between 15, 20, 25, or 30 years
- Shorter terms mean higher monthly payments but less total interest
- Longer terms mean lower monthly payments but more total interest
- Most common: 25-30 years for first-time buyers
Step 2: Add Property Tax and Insurance
Annual Property Tax
- Check your municipality's website for current rates
- Property tax rates vary by province and municipality
- Use the assessed value, not the purchase price
- Auto-distribution: Will be divided by 12 for monthly payments
- Typical range: $1,500 - $5,000 annually
Annual Home Insurance
- Get quotes from multiple insurance companies
- Include both home and contents insurance if needed
- Consider the replacement cost, not the market value
- Auto-distribution: Will be divided by 12 for monthly payments
- Typical range: $800 - $3,000 annually
Step 3: Include Canadian-Specific Fees
CMHC Insurance
- Required if down payment is less than 20%
- Rates vary by down payment percentage
- Check cmhc-schl.gc.ca for current rates
- Premium is added to the loan amount
- Auto-calculation: Based on loan-to-value ratio (LTV)
Land Transfer Tax
- One-time tax on property purchases
- Rates vary by province and property value
- Some provinces offer rebates for first-time buyers
- Check your province's website for current rates
- Typical range: 0.5% - 2.5% of property value
Legal Fees
- Fees for legal representation during purchase
- Typically range from $1,000 to $2,500
- Varies by province and complexity
- Typical: $1,500 - $2,000
Step 4: Optional Extra Payments
Extra Monthly Payment
- Additional amount you plan to pay each month
- Can significantly reduce your loan term and total interest
- Even small amounts can make a big difference over time
- Example: $200 extra monthly can save $50,000+ in interest
One-time Extra Payment
- Lump sum payment you plan to make in the first month
- Could be from savings, bonus, or other windfall
- Immediately reduces your principal balance
- Impact: Reduces total interest and loan term
Step 5: IFRS 9 Compliance Options
Expected Credit Loss (ECL) Allowance
- IFRS 9 requires ECL recognition from day one
- Typical rates range from 0.1% to 2.0%
- Reduces the carrying amount of the loan
- Affects effective interest rate calculation
- Default: 0.5% (typical for residential mortgages)
Incremental Transaction Costs
- Include origination fees in EIR calculation
- Affects effective interest rate
- Complies with IFRS 9 requirements
Step 6: Calculate and Review Results
Click the "Calculate Mortgage" button to see your results:
Monthly Payment Breakdown
- Principal & Interest: The core loan payment
- Property Tax: Monthly tax payment
- Home Insurance: Monthly insurance premium
- Total Monthly Payment: Sum of all monthly costs
Total Costs
- Total Interest: Total interest paid over the loan term
- Total Cost: Property price plus all interest and fees
- Loan Amount: Amount you're borrowing
- CMHC Insurance: Insurance premium amount
- Land Transfer Tax: Provincial transfer tax
- Legal Fees: Legal representation costs
Extra Payment Savings
- Interest Saved: Total interest reduction from extra payments
- Term Reduced: Years saved from extra payments
- New Loan Term: Actual loan duration with extra payments
IFRS 9 Compliance Results
- Base Loan Amount: Original loan amount
- CMHC Insurance: Insurance premium amount
- Total Loan Amount: Including CMHC insurance
- ECL Allowance: Expected credit loss amount
- Effective Interest Rate: IFRS-compliant EIR
Step 7: View Amortization Schedule
Click "View Amortization Schedule" to see:
- Payment-by-payment breakdown over the loan term
- IFRS 9 compliant calculations
- Effective interest rate amortization
- Row-by-row rounding to cents
- Extra payments included in the schedule
Step 8: Export Your Results
Click "Export to Excel" to download a comprehensive CSV file containing:
- Summary Information: Property details, loan amounts, rates
- Loan Terms: Interest rates, effective rates
- Monthly Costs: Breakdown of all payment components
- Total Costs: Complete cost analysis over loan term
- Extra Payment Analysis: Savings and term reduction
- Amortization Schedule: IFRS 9 compliant schedule
- Regulatory Notes: IFRS compliance and disclaimer information
Export Features
- Professional CSV format compatible with Excel
- Includes IFRS 9 compliance calculations
- Perfect for sharing with lenders or accountants
- Contains complete amortization schedule
- Includes legal disclaimers and compliance notes
- Extra payment impact analysis
Tips for Best Results
- Compare multiple scenarios: Try different loan terms, rates, and payment amounts
- Consider extra payments: Even small additional amounts can save thousands in interest
- Factor in all costs: Don't forget property tax, insurance, and other ongoing expenses
- Check first-time buyer benefits: You may be eligible for land transfer tax rebates
- Use realistic rates: Research current market rates from multiple lenders
- Consult professionals: Always seek independent financial advice before making decisions
Common Scenarios
First-Time Home Buyer
- May be eligible for land transfer tax rebates
- Consider Home Buyers' Plan (HBP) for RRSP withdrawals
- Larger down payments typically get better rates
- Consider longer loan terms for lower initial payments
Investment Property
- Higher interest rates typically apply
- Consider rental income vs mortgage payments
- Account for property management fees
- Factor in potential tax deductions
Refinancing
- Include break costs from current mortgage
- Consider new legal and appraisal fees
- Factor in potential savings from lower rates
- Account for any new CMHC requirements
Tips for Accurate Results
Get the Most Accurate Estimate
- Shop around for the best interest rates
- Get actual property tax rates for your area
- Obtain insurance quotes for your specific home
- Check CMHC rates for your down payment percentage
- Verify land transfer tax rates for your province
- Consider closing costs in your total budget
- Factor in extra payment scenarios
Important Disclaimer: This calculator is provided for general information only and does not consider your personal circumstances, credit history, or financial situation. It is not financial or mortgage advice. All figures are estimates based on information provided. Actual mortgage terms, rates, and fees will vary by lender and individual credit profile.