Canadian Mortgage Calculator — Fixed & Variable
Monthly payments with semi-annual compounding (Canada standard). Works for 5-year fixed, variable, and HELOC scenarios. Free. No email capture.
Current Canadian mortgage rates (April 2026)
| Loan type | Big 5 posted | Discount broker |
|---|---|---|
| 5-year fixed (high-ratio insured) | 4.30% – 4.70% | 4.10% – 4.40% |
| 5-year fixed (conventional, 20%+ down) | 4.60% – 5.10% | 4.30% – 4.70% |
| 5-year variable (prime − 0.20 to −0.60) | 4.20% – 4.80% | 4.00% – 4.50% |
| 3-year fixed | 4.45% – 4.95% | 4.20% – 4.60% |
| HELOC | prime + 0.5% ≈ 5.50% | — |
Bank of Canada policy rate: 2.25%. Prime rate: 5.00%. Rates vary significantly with down payment, credit score, and whether you use a broker vs a branch. Stress-test qualifying rate: 5.25% (unchanged since 2018).
Big 5 Canadian banks + mortgage brokers
- RBC Royal Bank — largest mortgage lender; RBC Homeline HELOC is popular
- TD Canada Trust — flexible prepayment options (20/20 rule), strong digital experience
- Scotiabank — Scotia Total Equity Plan (STEP) combines mortgage + HELOC
- BMO — SmartFix mortgage (convert variable to fixed anytime penalty-free)
- CIBC — competitive new-to-Canada programs for newcomers
- Mortgage brokers (Butler, True North, nesto) — often 0.2–0.5% below big-bank posted rates
The real cost of a Canadian mortgage
Example: C$500,000 loan at 4.50% 5-year fixed, 25-year amortization.
- Monthly payment: C$2,772 (semi-annual compounding)
- Paid over 5 years: C$166,334 (C$86,627 to interest, C$79,707 to principal)
- Balance at end of 5-year term: C$420,293 — you must then renew
- If kept at same rate to end of 25yr: total paid C$831,597
- CMHC premium on 5% down: add ~4% of mortgage to amount (C$20k on this loan)
Canadian mortgages renew every 1-10 years. Unlike the US where you lock a rate for 30 years, Canadians re-negotiate multiple times over the life of the loan.
First-time homebuyer programs (2026)
- FHSA (First Home Savings Account) — save up to $40,000 tax-free for first home. Combines best of RRSP (tax deduction) + TFSA (tax-free withdrawal).
- RRSP Home Buyers' Plan (HBP) — withdraw up to $60,000 from RRSP tax-free for first home (must repay over 15 years).
- First-Time Home Buyer Incentive — shared-equity with CMHC (5-10% of purchase price, repaid when you sell).
- GST/HST new housing rebate — up to $30,300 back on new construction homes.
- Ontario Land Transfer Tax rebate — up to $4,000 for first-time buyers.
Frequently Asked Questions
What is the current 5-year fixed rate?
As of April 2026: 4.30% – 5.10% at Big 5 banks, 4.10% – 4.70% through discount brokers. Rates depend heavily on your down payment (insured vs uninsured).
Fixed or variable?
Variable has historically beaten fixed over long periods but requires tolerance for rate changes. With BoC rate cuts expected, variable is currently attractive.
What is the stress test?
Since 2018, you must qualify at your contract rate + 2% OR 5.25%, whichever is higher. This limits your borrowing power by roughly 15-20%.
Do I need 20% down?
No — minimum is 5% for homes under $500k. But below 20% means CMHC insurance (2.8-4% of loan amount). Use FHSA + RRSP HBP to boost down payment.
Canadian vs US mortgage compounding?
Canada uses semi-annual compounding, not monthly. This means for any quoted rate, your effective monthly rate is slightly lower. Our calculator handles both correctly.