Home Loan Calculator

Our Home loan calculator is an informative online tool that shows potential Home buyers how much their estimated monthly mortgage payments will look like. The calculator takes factors such as Home property value, amortization, mortgage rate and the down payment all together in its calculation. 

How do I lower my payments?

While using our calculator, you can compare and test different scenarios that fit your current or desire situation. To lower your monthly mortgage payments try reducing the property value of the Home, choosing a lower interest rate, extending the amortization period and/or increasing your down payment. 

Home Loan Mortgage Calculator Elements

Property Value: The property value is the purchase price of the house without any other associated costs added. The value of the property is reflective of the current real estate market. The Home value can also be assessed by an appraisal if the house is being refinanced or resold.

Amortization: Depending on how long of a time period you would like to pay off your entire mortgage, you can fast-track your way or take your time. This payment calculator ranges from 5-30 years.

In Canada, the maximum amortization period is 35 years with the exception of default insured mortgages that have a maximum amortization of 25 years.

The longer you set your amortization schedule, the more interest you will have to pay.

Mortgage Rate: Throughout the term of a mortgage, the buyer can choose between many available rates however, a fixed mortgage rate or a variable mortgage rate are the most popular Canadian options.

Fixed-rates remain the same throughout the term while variable-rates rely on the fluctuating prime rate. If the prime rate lowers, so will the mortgage rate. If the prime rate rises, the mortgage rate will do the same.

A prime rate is the annual interest rate a financial institution sets specifically for variable loans and mortgages.

% of Down Payment: A down payment is the initial payment required in order to purchase a Home. This money is deducted from the purchase price of the Home while your mortgage loan covers the rest. This initial cost confirms your severity about the purchase.

Canadians are required to put down a minimum of 5% on a property costing less than $500,000. Anything more will require 5% for the first $500,000 of the purchase price followed by 10% for the rest.

Purchase Price = $600,000

  • First Part of the Purchase Price ($) = $500,000
  • Minimum Down Payment (%) = 5%
  • Minimum Down Payment ($) = $25,000

  • Remaining Purchase Price ($) = $100,000
  • Minimum Down Payment (%) = 10%
  • Minimum Down Payment ($) = $10,000 

Minimum Down Payments ($25,000) + ($10,000) = $35,000

Total Minimum Down Payment = $35,000


If your down payment is less than 20% of the price of your Home, you are required to purchase mortgage loan insurance, also known as CMHC insurance.

Default insurance protects the mortgage lender in case the buyer is not able to make mortgage payments. 

If you’re self-employed or have a poor credit history, you may be required to purchase mortgage loan insurance even if you have a 20% down payment. You are not required to purchase default insurance if your down payment is more than 20% or if the cost of your Home is more than $1 million.

How will a Home loan calculator help me buy a Home?

By figuring out your mortgage payment frequency, you can plan for your current mortgage and future plans of refinancing.

Utilizing this tool maps out where you need to be financially. A HomeHow mortgage specialist can help you get to where you want to be, one step closer to your dream Home.

For any further detail into your calculator results, please reach out to us.