Calculate how much mortgage you can afford in Canada with our free mortgage affordability calculator. Includes the OSFI stress test (qualifying rate), CMHC mortgage insurance for down payments under 20%, land transfer tax for all provinces, and first-time buyer rebates. Also calculates monthly, bi-weekly, and weekly payment schedules with full amortization charts.
The Canadian mortgage stress test, regulated by OSFI, requires borrowers to qualify at the higher of their contract rate plus 2%, or 5.25%. This means if your actual mortgage rate is 5%, you must prove you can afford payments at 7%. The stress test applies to all federally regulated lenders (banks) for both insured and uninsured mortgages.
The minimum down payment in Canada depends on the purchase price: 5% for homes up to $500,000; 5% on the first $500,000 plus 10% on the portion between $500,000 and $999,999; and 20% for homes $1,000,000 and over. Homes over $1 million are not eligible for CMHC mortgage insurance.
CMHC (Canada Mortgage and Housing Corporation) mortgage insurance is required when your down payment is less than 20%. The premium is 4.00% for a 5% down payment, 3.10% for 10–14.99% down, and 2.80% for 15–19.99% down. The premium is added to your mortgage and paid over the amortization period.
For insured mortgages (down payment under 20%), the maximum amortization period is 25 years. For uninsured mortgages (down payment 20% or more), lenders may offer up to 30 years, though 25 years is most common. Longer amortization means lower monthly payments but significantly more total interest paid.