What is included in a Toronto mortgage payment?

A standard mortgage payment consists of principal (the amount that pays down your actual loan balance) and interest (the cost of borrowing the money from the lender). Depending on your setup, some lenders may also integrate your annual property tax payments into this monthly amount.

How much is the land transfer tax in Toronto?

Unlike most cities in Ontario, Toronto real estate transactions are subject to two separate land transfer taxes: the provincial Ontario land transfer tax and the municipal Toronto land transfer tax. Both use a sliding scale based on the home's value, effectively doubling the tax burden compared to properties bought outside the city boundaries.

How can I lower my monthly mortgage payments?

The most effective ways to reduce your recurring payment amounts include contributing a larger upfront down payment, opting for a longer amortization period (such as 25 or 30 years), or shopping around for a lower interest rate package.

Toronto Mortgage Calculator

Planning to buy a home in Toronto or the GTA? Estimate your monthly or bi-weekly home payments, evaluate baseline down payment parameters, and seamlessly coordinate your home purchase strategy. Use our interactive calculator below to estimate your exact payment rates, compare custom financing scenarios, and determine your total amortization timeline seamlessly.

Mortgage Calculator

Purchase Amount:

Interest Rate:

Mortgage Term (Years):

Payment Interval:

Down Payment:

Closing Costs ($):

Closing Costs (%):

Loan amount:

Interest rate:

Payment interval:

Mortgage term:

Payment:

Total payments:

Total amount paid:

Total interest paid:

This calculator is for information purposes only. Users should not use this calculator to make any financial decisions and should speak with their bank or mortgage broker. The website owner does not guarantee the accuracy or reliability of any information or calculations provided by this calculator. The website owner is not liable for loss or damage of any kind arising from the use of this tool.

How to Estimate Your Mortgage Payments in Toronto

Knowing your monthly payment is one of the first steps to buying in the Greater Toronto Area. Your payment depends on four things: the purchase price, your down payment, your interest rate and your amortization. Adjust them in the calculator above to see how a bigger down payment or a small change in rate affects your payment and the total interest you'll pay.

Understanding Amortization vs. Mortgage Term

Amortization: 25 or 30 years

The total time it takes to pay off your mortgage. With less than 20% down, the maximum is 25 years, or 30 years if you're a first-time buyer or buying a newly built home. With 20% or more down, many lenders offer up to 30 years. A longer amortization lowers your payment but means more interest overall.

Term: usually 1 to 5 years

How long your current rate and lender agreement last. When your term ends, you renew at the rates available then, or switch lenders. Most Canadians choose a 5-year term.

Check the stress test. To qualify, lenders test your payment at 5.25% or your rate plus 2%, whichever is higher. Enter that rate in the calculator to see the payment you'll need to qualify for.

Putting down less than 20%? Use our CMHC Mortgage Insurance Calculator to add the insurance premium to your estimate.

Questions

Mortgage calculator FAQ

How does payment frequency affect my mortgage?

Paying more often, such as bi-weekly or weekly, means slightly more of each payment goes to principal, which can lower the total interest you pay.

What’s the difference between bi-weekly and accelerated bi-weekly?

Standard bi-weekly spreads 12 monthly payments over 26 payments, so you pay the same amount per year. Accelerated bi-weekly pays half your monthly payment every two weeks, which adds up to one extra monthly payment a year and shortens your amortization.

Can I get a 30-year amortization?

Yes, in some cases. With less than 20% down, 30 years is available to first-time buyers and buyers of newly built homes. With 20% or more down, many lenders offer 30 years to any buyer.

What is the mortgage stress test?

Lenders check that you could still afford your payments if rates rose. You have to qualify at the higher of 5.25% or your contract rate plus 2%, even though you’ll pay your actual rate.

What are the best ways to pay off my mortgage faster?

Pay more often, make lump-sum prepayments, or raise your regular payment. Check your lender’s prepayment limits first so you don’t trigger a penalty.

What is a lump-sum prepayment?

A one-time payment that goes straight to your principal. Many lenders let you prepay 10% to 20% of the original balance each year without a penalty.

Does increasing my regular payment make a difference?

Yes. Even an extra $50 to $100 a month goes straight to principal and can take years off your mortgage and save thousands in interest.

This website may only be used by consumers that have a bona fide interest in the purchase, sale, or lease of real estate of the type being offered via the website. The data relating to real estate on this website comes in part from the MLS® Reciprocity program of the PropTx MLS®. The data is deemed reliable but is not guaranteed to be accurate.