Payment estimator
Mortgage stress test & payment estimator.
Built for the Ontario market. Includes the stress-test rate lenders qualify you at, CMHC default insurance for under-20% down, and bi-weekly accelerated savings.
Need land transfer tax, cash to close or an amortization schedule? Use the full mortgage payment calculator.
Your scenario
Your payment
Monthly payment (contract rate)
$4,039
at 4.59% over 25 years
$4,460
Lenders qualify you at this rate, even though you pay the contract rate.
- Loan amount
- $720,000
- Total interest over the amortization
- $491,659
- Total cost (loan + interest)
- $1,211,659
- Principal and interest per year
- $48,466
Illustrative. Talk to a mortgage broker for binding figures.
Three things to understand
Stress test
Lenders qualify you at the greater of contract + 2% or 5.25%. You pay the contract rate; you must afford the higher one on paper.
CMHC premium
Down under 20%? CMHC's premium is 2.80%–4.00% of the loan, usually rolled into the mortgage. Insured amortization: 25 years, or 30 for first-time buyers and new builds.
Bi-weekly accelerated
Half your monthly payment, every 2 weeks. That adds up to one extra monthly payment a year, all of it going to principal, so you pay the mortgage off sooner.
Mortgage essentials
What is the mortgage stress test?
Federally regulated lenders must qualify you at the greater of (a) your contract rate + 2% or (b) 5.25%. At a 4.5% contract rate, for example, you must qualify at 6.5%. You still pay your contract rate; the test decides how much you can borrow.
What's CMHC insurance and when do I pay it?
If your down payment is less than 20%, your mortgage must be insured against default (CMHC, Sagen or Canada Guaranty). CMHC's premium is 2.80%–4.00% of the loan, usually added to your mortgage; Ontario also charges sales tax on the premium, payable at closing. A bigger down payment means a lower premium.
Should I go with 25 or 30 year amortization?
A 30-year amortization lowers the monthly payment but costs more interest over time. With less than 20% down (an insured mortgage) the maximum amortization is 25 years, or 30 years if you are a first-time buyer or buying a newly built home. With 20% or more down, the lender sets the maximum (30 years is common).
Does bi-weekly really save me money?
Yes. Accelerated bi-weekly (half the monthly payment every two weeks) adds up to one extra monthly payment a year, all of it going to principal, so you pay the mortgage off sooner and pay less interest. Use the calculator above to see the saving on your own numbers.
Ready to get pre-approved?
Zara can refer you to Mortgage Squad Advisors, whose licensed agents compare lenders for you. A pre-approval comes from a lender and holds a rate for a set time, often 90 to 120 days.
Mortgage Squad Advisors (FSRA Lic. #13737) is an independent mortgage brokerage, not part of Summitly. Summitly may be compensated for referrals.
