A monthly mortgage payment depends on four variables: the amount borrowed, meaning the price minus the down payment; the negotiated rate; the amortization chosen; and, when the down payment is under 20%, the mortgage insurance premium that is added to the principal. As of September 12, 2026, the best insured 5-year fixed rate is 4.09% and the variable is negotiated from about 3.35% (Ratehub reading of September 11), which puts the payment on a typical $400,000 loan over 25 years at roughly $2,124 per month at the fixed rate, or less on a variable. The calculator below does the full calculation, premium included, and the linked pages explain each lever: down payment, choice of rate, amortization and pre-approval, which remains the step that turns an estimate into a real budget.
Calculate your payment
The tool applies the standard formula used by Canadian lenders and the public mortgage insurance premium schedule based on your down payment. To know the maximum a lender will actually grant you, pre-approval is what settles it.
The four variables behind the payment
The amount borrowed: every additional slice of down payment lowers the payment twice, by reducing the principal and, at the 10%, 15% and 20% thresholds, the insurance premium. The full rules are on our minimum down payment page.
The rate: the gap between the posted rate and the negotiated rate is often more than half a point. Our rates of the month page tracks the real numbers, and the fixed or variable choice changes the starting point. Amortization: going from 25 to 30 years lightens the monthly payment but increases total interest and, on an insured loan, adds premium points. Frequency: accelerated bi-weekly payments push the equivalent of one extra payment a year toward the principal.
The mortgage insurance premium, explained
Under 20% down, the loan must be insured (CMHC, Sagen or Canada Guaranty). The premium follows a public schedule by financing tier: about 2.8% of the loan at 85% financing, 3.1% at 90% and 4.0% at 95%, with a surcharge for a 30-year amortization. It is added to the loan, but its 9.975% QST is paid in cash at the notary.
Our CMHC mortgage insurance guide details the schedule and the difference with mortgage life insurance, which is a separate product.
Lowering your payment without trapping yourself
- Negotiate the rate: making lenders compete, on your own or through a mortgage broker, remains the most rewarding lever.
- Lengthen the amortization: useful for breathing room, costly over time; reassess it at every renewal or early exit.
- Grow the down payment: the FHSA and the Home Buyers' Plan can be combined for a first purchase.
- Beware of the floor payment: a budget calculated at today's rate with no cushion weakens the file at the first increase.
From the calculation to pre-approval
The calculator gives the payment; it does not say what a lender will accept. Lenders validate two debt ratios against your gross income, check your credit score and stress-test your capacity under the rules in force: you must qualify at the higher of 5.25% or your contract rate plus 2 points, so at 6.09% on a 4.09% loan. Our what salary do you need to buy page turns those ratios into concrete numbers.
Before you visit anything, get a written pre-approval with a rate hold: it is free, it sets your real budget and it gives weight to your offers.
From an estimated payment to a confirmed budget.
A broker from the team connects you with the right mortgage partners and builds your project on real numbers, not estimates. Service in English and French.
Frequently asked questions
How do you calculate a mortgage payment in Quebec?
The payment is calculated on the amount borrowed (price minus down payment, plus the mortgage insurance premium if the down payment is under 20%), at the negotiated rate, over the chosen amortization. As an illustration, at the best insured 5-year fixed rate of September 2026, 4.09%, a typical $400,000 loan over 25 years comes to about $2,124 per month. The calculator on this page does the full calculation, premium included.
What is the payment on a $500,000 house?
With 5% down, the insured loan comes to about $494,000 once the premium is added, which means a payment of about $2,623 per month over 25 years at the best insured 5-year fixed rate of September 2026, 4.09%. With 20% down, the loan drops to $400,000 and the payment to about $2,124. The actual rate depends on your file: pre-approval gives the exact figure.
Does the calculator include property taxes and home insurance?
No: it estimates the mortgage payment only. Add municipal and school taxes, the home insurance your lender requires, heating and, in a condo, the condo fees. Lenders include those amounts in their debt ratios: a property with a comfortable payment can become tight once the full carrying costs are counted.
Published August 17, 2026, updated September 13, 2026, by the Loaa & Manseur team, #1 team at RE/MAX Platine in 2024 and 2025 · Version française de ce calculateur · Tell us about your project