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Mortgage Calculator
Accurate Canadian calculations with semi-annual compounding, CMHC insurance, BC Property Transfer Tax, and real-time results. No guesswork, just clarity.
Your Estimated Monthly Payment
$2,842
Total monthly housing cost: $3,242
Total Mortgage
$494,000
Total Interest
$358,682
Mortgage Payoff
February 2051
BC Property Transfer Tax
$8,000
Canadian lenders require you to qualify at the higher of your contract rate + 2% or 5.25%. This ensures you can handle rate increases.
Your Rate
$2,842/mo
at 4.89%
Qualifying Rate
$3,427/mo
at 6.89%
I'll review your numbers and help you plan your next steps.
Understanding Your Mortgage
Unlike American mortgages that compound monthly, Canadian mortgage interest is compounded semi-annually by law under the Bank Act. This means your effective monthly rate is slightly lower than simply dividing the annual rate by twelve. This calculator uses the correct Canadian formula, ensuring your payment estimates are accurate to the penny.
When your down payment is less than 20% of the purchase price, Canadian law requires mortgage default insurance through CMHC, Sagen, or Canada Guaranty. The premium ranges from 2.8% to 4.0% of the mortgage amount depending on your loan-to-value ratio, and is added directly to your mortgage principal. For first-time buyers choosing a 30-year amortization, an additional 0.20% surcharge applies.
British Columbia charges a Property Transfer Tax on all real estate purchases. The tax is calculated on tiered brackets: 1% on the first $200,000, 2% from $200,001 to $2,000,000, 3% from $2,000,001 to $3,000,000, and 5% above $3,000,000. First-time home buyers may qualify for a full exemption on properties up to $500,000 or a partial exemption up to $525,000.
Choosing accelerated bi-weekly payments is one of the simplest ways to pay off your mortgage faster. By paying half your monthly payment every two weeks, you effectively make the equivalent of 13 monthly payments per year instead of 12. On a typical Kelowna mortgage, this can save tens of thousands of dollars in interest and shave years off your amortization.
Have questions about your mortgage options? I am here to help.
Talk to KarsenMonthly Payment
$2,842