Down Payment

Your down payment is the amount you pay upfront toward the purchase price of a home. In Canada, the minimum down payment depends on the purchase price.

For homes $500,000 or less, the minimum down payment is typically 5 percent. For homes over $500,000 and under $1.5 million, the minimum is usually 5 percent on the first $500,000 and 10 percent on the remaining amount. Homes priced at $1.5 million or more generally require at least 20 percent down.

A larger down payment can reduce your mortgage amount, lower your monthly payments, and may help reduce or avoid mortgage default insurance costs.

Mortgage Term

The mortgage term is the length of time your mortgage agreement is in place with your lender. Common terms in Canada include 1, 2, 3, 4, or 5 years. At the end of the term, you can renew, refinance, or make changes to your mortgage depending on your situation and lender options.

Amortization Period

The amortization period is the total length of time it would take to fully pay off your mortgage if payments are made as scheduled. Many Canadian buyers use a 25 year amortization, although longer or shorter options may be available depending on the mortgage, down payment, lender, and eligibility.

A longer amortization can lower your monthly payment, but may increase the total interest paid over time. A shorter amortization can increase monthly payments, but may help you pay off the mortgage faster.

Mortgage Type

In Canada, the most common mortgage rate types are fixed rate and variable rate mortgages.

A fixed rate mortgage keeps the same interest rate for the length of your mortgage term, which can provide payment stability and easier budgeting.

A variable rate mortgage can change based on lender and market rate changes. This may result in payment changes or changes to how much of your payment goes toward interest versus principal, depending on the mortgage product.

The right option depends on your budget, risk tolerance, timeline, and current market conditions.

Interest Rate

The interest rate affects your mortgage payment and the total cost of borrowing. The rate shown in the calculator is only an estimate. Your actual rate may vary based on your lender, credit profile, income, down payment, property type, mortgage term, amortization, and whether mortgage default insurance applies.

Property Taxes

Property taxes are charged by the municipality where the property is located. In Alberta, property taxes can vary by city, town, neighbourhood, assessment value, and property type.

The calculator may estimate property taxes based on the home value, but the actual amount should be confirmed through the municipality, the property tax notice, or listing information when available.

Home Insurance

Home insurance helps protect the property and is typically required by lenders before mortgage funding. Insurance costs can vary based on the property, location, coverage, claims history, and insurance provider.

The amount shown in the calculator is only an estimate and should be confirmed with an insurance broker or provider.

Condo Fees

If you are buying a condominium in Alberta, monthly condo fees may apply. These fees can help cover items such as building insurance, exterior maintenance, reserve fund contributions, common area utilities, professional management, landscaping, snow removal, and other shared expenses.

Condo fees vary by building and should be reviewed carefully along with the condominium documents, financial statements, reserve fund study, bylaws, and meeting minutes.

Important Note

This calculator is for general information only and provides an estimate based on the numbers entered. Actual mortgage payments, interest rates, property taxes, insurance, condo fees, closing costs, and lender requirements may vary. Speak with a qualified mortgage professional, lawyer, insurer, or accountant before making financial decisions.