Mortgage Calculator

Buying Real Estate

Canadian Mortgage Calculator

This calculator calculates Canadian monthly mortgage payments based on principal, interest and term. Canadian mortgages are compounded semi-annually.

Do you qualify for a mortgage on your "dream home"? Use this rule of thumb calculation to find out!

1. Calculate the combined monthly gross (before tax) income of you and your spouse.
2. Divide by three. This figure is the maximum monthly payment you can afford to make on your house.
3. Take the total price of your "dream home" and subtract the amount of money you expect to make as a down payment. This is the money you will have to borrow.
4. Using the calculator below, figure out your monthly payment using the current interest rate and amortization period of your choice (most first-time buyers choose 25-year amortization)
5. Add this to your estimated utility costs and monthly property taxes.
6. If this figure is less than 1/3rd of your gross monthly income, you may qualify for a mortgage on your "dream home".