How much is the monthly payment on a $500,000 mortgage in Canada? The tables below answer that for every $100,000 step from $200,000 to $1,000,000, at four common rates. Every figure uses semi-annual compounding, the standard for Canadian fixed-rate mortgages because the federal Interest Act requires the rate to be stated “calculated yearly or half-yearly, not in advance”. That makes the numbers slightly lower than an American calculator would show.
Monthly payments over 25 years
Principal and interest only, monthly payments, 25-year amortization.
| Mortgage amount | 3.99% | 4.49% | 4.99% | 5.49% |
|---|---|---|---|---|
| $200,000 | $1,050.96 | $1,105.83 | $1,162.07 | $1,219.62 |
| $300,000 | $1,576.43 | $1,658.75 | $1,743.11 | $1,829.43 |
| $400,000 | $2,101.91 | $2,211.67 | $2,324.14 | $2,439.24 |
| $500,000 | $2,627.39 | $2,764.59 | $2,905.18 | $3,049.05 |
| $600,000 | $3,152.87 | $3,317.50 | $3,486.22 | $3,658.86 |
| $700,000 | $3,678.35 | $3,870.42 | $4,067.25 | $4,268.67 |
| $800,000 | $4,203.83 | $4,423.34 | $4,648.29 | $4,878.48 |
| $900,000 | $4,729.30 | $4,976.25 | $5,229.32 | $5,488.29 |
| $1,000,000 | $5,254.78 | $5,529.17 | $5,810.36 | $6,098.10 |
Monthly payments over 30 years at 4.49%
A 30-year amortization lowers the payment but adds interest. Totals assume the rate stays at 4.49% for the full amortization, which it won’t in practice, so treat them as a comparison rather than a forecast.
| Mortgage amount | 30-year payment | Lower than 25 years by | Total interest (30 yrs) | Total interest (25 yrs) |
|---|---|---|---|---|
| $200,000 | $1,007.27 | $98.57 | $162,616 | $131,750 |
| $300,000 | $1,510.90 | $147.85 | $243,925 | $197,625 |
| $400,000 | $2,014.54 | $197.13 | $325,233 | $263,501 |
| $500,000 | $2,518.17 | $246.42 | $406,541 | $329,376 |
| $600,000 | $3,021.80 | $295.70 | $487,849 | $395,251 |
| $700,000 | $3,525.44 | $344.98 | $569,157 | $461,126 |
| $800,000 | $4,029.07 | $394.27 | $650,466 | $527,001 |
| $900,000 | $4,532.70 | $443.55 | $731,774 | $592,876 |
| $1,000,000 | $5,036.34 | $492.83 | $813,082 | $658,751 |
Who can choose 30 years depends on your down payment. See 30-year amortization in Canada for the rules.
How to read the tables
- The amount is the mortgage, not the home price. On a $700,000 home with $70,000 down, the loan is $630,000 before any mortgage insurance. With less than 20% down, the CMHC premium is added to the loan, so the amount you look up should include it. The CMHC insurance calculator adds it for you.
- Payments scale in a straight line. Each $100,000 adds the same amount at a given rate: about $525 a month at 3.99%, $553 at 4.49%, $581 at 4.99% and $610 at 5.49% over 25 years. To estimate $650,000, take halfway between the $600,000 and $700,000 rows.
- Half a point is worth roughly $27 to $29 a month per $100,000 over 25 years at these rates. On a $600,000 mortgage, going from 4.49% to 4.99% adds $168.72 a month.
- Property tax, heating, condo fees and insurance are not included. Lenders add them when they check your GDS and TDS ratios.
- Other frequencies cost the same per year unless you pick an accelerated option. Accelerated biweekly adds the equivalent of one monthly payment a year and shortens the amortization.
Worked example
You’re buying a $625,000 home with 20% down, so the mortgage is $500,000 and no insurance is needed. At 4.49% over 25 years the payment is $2,764.59 a month. If you stretch to 30 years, it drops to $2,518.17, which frees up $246.42 a month but adds about $77,000 of interest if the rate never changed. If your rate came in at 4.99% instead, the 25-year payment would be $2,905.18.
Remember that the bank qualifies you at a higher rate than you pay. Under the stress test, the qualifying rate is the greater of your contract rate plus 2% or 5.25%, so a 4.49% mortgage is tested at 6.49%. A payment that looks affordable in the table may still be more than you can qualify for. Check with the stress test calculator.
Get your exact number
For any amount, rate or frequency, use the mortgage calculator. To see how much of each payment goes to interest year by year, use the amortization schedule calculator. For how the semi-annual compounding works, read how Canadian mortgage interest is calculated.
Sources: Interest Act, section 6; OSFI, minimum qualifying rate; FCAC, preparing to get a mortgage; CMHC, mortgage loan insurance cost. Payments calculated with this site’s tested engine.