Quick answer
On a $900,000 home with $90,000 down (10%), a 4.5% fixed rate and a 25-year amortization, the CMHC premium of $25,110 is added to the $810,000 loan, and the payment is about $4,622 a month. The minimum down payment on that home is $65,000, and property transfer tax at closing is $16,000. The first-time buyer exemption ends at $860,000, so it doesn't help at this price.
Put your own numbers in the calculator above. It works the way Canadian lenders do: fixed-rate interest compounded twice a year, mortgage insurance added to the loan when you put down less than 20%, and the BC property transfer tax shown as part of the cash you need to close.
Minimum down payment in Canada
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the price |
| $500,000 to $1.5 million | 5% of the first $500,000, plus 10% of the rest |
| $1.5 million or more | 20% of the price |
So a $900,000 home needs at least $25,000 + $40,000 = $65,000 down. The calculator warns you if your down payment is below the minimum.
CMHC mortgage insurance
With less than 20% down, you'll usually need mortgage loan insurance. The premium is a percentage of the loan and is normally added to the mortgage, so you pay it off with your payments.
| Down payment | Loan-to-value | Premium on the loan |
|---|---|---|
| 15% to 19.99% | 80.01% to 85% | 2.80% |
| 10% to 14.99% | 85.01% to 90% | 3.10% |
| 5% to 9.99% | 90.01% to 95% | 4.00% |
In BC there's no provincial sales tax on the premium. CMHC notes PST applies only in Quebec, Ontario and Saskatchewan.
Payment frequency and paying off faster
- Monthly: 12 payments a year.
- Bi-weekly: 26 payments a year, each a bit less than half the monthly payment. Same payoff time.
- Accelerated bi-weekly: half the monthly payment, 26 times a year. That's one extra monthly payment a year, so the mortgage is paid off years sooner.
- Accelerated weekly: a quarter of the monthly payment, 52 times a year. The same effect as accelerated bi-weekly.
Pick an accelerated option in the calculator and it shows how many years sooner you'd finish.
The cash you need to close in BC
Your down payment isn't the only cheque. The Province charges property transfer tax when the home is registered: 1% of the first $200,000 and 2% up to $2 million, with exemptions for first-time buyers and newly built homes. The calculator adds it to your down payment. Budget separately for legal or notary fees and property tax adjustments. For the full breakdown, use our property transfer tax calculator.
Tip: Once you own the home, don't forget the yearly costs. Our property tax calculator estimates the annual bill in Surrey, Delta, the City of Langley and White Rock.
Frequently Asked Questions
How is a mortgage payment calculated in Canada?
Fixed-rate mortgages in Canada compound interest twice a year, not monthly. The calculator converts the rate you enter to a matching rate for your payment frequency, then spreads the loan (plus any CMHC premium) over the amortization.
What is the minimum down payment on a $1 million home?
$75,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $500,000 ($50,000).
Do I need CMHC insurance with 20% down?
Mortgage loan insurance is typically needed when you put down less than 20%. With 20% or more, the calculator doesn't add a premium.
Does the calculator include property tax and strata fees?
No. It covers the mortgage payment and the cash to close. Add property tax, strata fees, insurance and utilities to see the full monthly cost.
What interest rate should I use?
Use the rate a lender or broker quotes you. Rates change often, so the calculator doesn't guess one for you.
Official sources
- Financial Consumer Agency of Canada: Down payment
- CMHC: Mortgage loan insurance premiums
- Province of BC: Property transfer tax
- Province of BC: First time home buyers' exemption amounts
An estimate for general information, not financial advice. Rates change, so check the official sources above before you rely on a number. Spotted something out of date? Tell us.