Your real monthly payment.
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.
Monthly payment (contract rate)
$4,039
@ 4.59% over 25 yrs
$4,460
Lenders qualify you at this rate — even though you pay the contract rate.
- Loan amount$720,000
- Total interest over amort.$491,659
- Total cost (loan + interest)$1,211,659
- Yearly principal+interest$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%? You pay 2.80%–4.00% mortgage default insurance, rolled into the loan. Hits long-term cost more than people realise.
Bi-weekly accelerated
Half your monthly payment, every 2 weeks. Produces one extra monthly payment per year. Saves 3–4 years of interest on a typical mortgage.
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%. Even though you pay your contract rate, you must afford the higher rate on paper. The stress test prevents over-leverage when rates rise.
What's CMHC insurance and when do I pay it?+
If your down payment is less than 20%, you must purchase mortgage default insurance (CMHC, Sagen, or Canada Guaranty). Premium is 2.80% – 4.00% of the loan, rolled into your mortgage. Higher down = lower premium = lower lifetime cost.
Should I go with 25 or 30 year amortization?+
30-year lowers monthly payments but costs more interest over time. Only available with 20%+ down (insured 30-year is not allowed in Ontario as of 2025). For under-20% down, max amort is 25 years.
Does bi-weekly really save me money?+
Accelerated bi-weekly (half monthly, every 2 weeks) produces one extra monthly payment per year. On a $700K mortgage at 5%, you typically save 3–4 years of interest and ~$45K over the amortization.
Get pre-approved at the best rate.
Zara connects you with Mortgage Squad — brokers that shop 50+ lenders for the best Ontario rate. Pre-approval lock typically holds for 90–120 days.