A $650,000 home with $65,000 down, a rate of 4.85% and a term of 25 years costs $3,456.54 a month. The loan behind it is $603,135, which includes an $18,135 CMHC premium. Type your own figures below to get your payment.
What goes into a mortgage payment?
Four inputs drive the result: the loan, the rate, the amortization and how often you pay. The loan is the price minus your down payment, plus an insurance premium when the deposit is under 20%. Lenders here compound fixed rates twice a year, so the monthly rate isn’t the annual rate divided by twelve. The tool uses that semi-annual method, which is why a basic online formula can land a few dollars off.
What are the rules for insured mortgages?
| Item | Rule |
|---|---|
| Minimum down payment | 5% on the first $500,000, then 10% on the next slice to $1,500,000 |
| Homes of $1,500,000 or more | At least 20% down, no insurance |
| Premium, 80.01% to 85% loan-to-value | 2.80% of the loan |
| Premium, 85.01% to 90% | 3.10% of the loan |
| Premium, 90.01% to 95% | 4.00% of the loan |
| Stress test rate | The higher of your rate plus 2% and 5.25% |
What does a bigger down payment change?
Take the default case. The price is $650,000 and the down payment is $65,000, or 10%. The base loan is $585,000, and the premium of 3.10% adds $18,135, so you borrow $603,135. Over 25 years you’d pay $433,827 in interest.
Now raise the down payment to $130,000, which is 20%. The premium disappears, the loan falls to $520,000 and the payment drops to $2,980.10. Interest over the whole loan falls to $374,029.
Go back to 10% down and switch to accelerated bi-weekly. You pay $1,728.27 every two weeks and clear the loan in 21.6 years. That saves $67,403 in interest, about 3.4 years sooner than monthly payments would.
Could you still pay if rates went up?
The table under the result shows your monthly payment if the rate were 0.50% or 1.00% higher. At 6.85%, the stress test rate for the default case, the payment is $4,168.75, or $712.21 more. If your budget breaks at a higher rate, it’s too tight.
The mortgage stress test calculator shows how lenders apply that higher rate, and the mortgage affordability calculator turns it into a price ceiling.
What isn’t in the payment?
Property tax, heating, strata or condo charges and your own insurance. Add those separately.
The tax on the premium in Ontario, Quebec and Saskatchewan is paid in cash when the sale closes and stays out of the mortgage, so it gets its own line in the results. A 30-year amortization on an insured mortgage is restricted to first-time buyers and purchasers of a newly built home, and the calculator warns you when you pick more than 25 years. Your lender sets the final rate and may use rules this page doesn’t model.
To see the insurance step alone, try the CMHC insurance calculator. For the year-by-year balance, open the amortization schedule calculator, and check the down payment calculator for the minimum on your price. Buyers also owe tax when the title changes hands, which the land transfer tax calculator prices.
Where do the rules come from?
The federal consumer agency supplies the down payment tiers, and CMHC’s published table supplies the premium rates. The stress test rule follows the federal banking regulator’s guidance as of January 2026. Rules change with federal budgets, so confirm them with your lender before you sign. This website has no connection with any government body or lender.
Frequently asked questions
How much is the payment on a $650,000 home?
At 10% down, 4.85% and 25 years, it's $3,456.54 a month on a loan of $603,135, premium included.
Why does a bigger down payment cut the cost so much?
You borrow less and, at 20% down, you skip the premium. On the same home, 20% down lowers the payment to $2,980.10.
Does accelerated bi-weekly save money?
Yes. In the default case it saves $67,403 in interest and cuts 3.4 years, because 26 half payments add up to one extra month each year.
Is the tax on the CMHC premium added to the mortgage?
No. In Ontario, Quebec and Saskatchewan you pay it in cash when the deal closes, and the calculator lists it separately.
Can I get a 30-year amortization?
On an insured mortgage, only first-time buyers and people buying a newly built home can. Everyone else is limited to 25 years.
Sources and updates
Updated: . How we check rates · Editorial team · Updates
Estimate only. These figures are a planning estimate, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns, and we don't offer tax, legal or accounting services. We have no connection with the Canada Revenue Agency, Revenu Québec or any provincial government. Your real amounts depend on details this tool cannot see, so confirm them with an official source or a qualified professional before you act.