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Mortgage payment calculator Ontario

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Calculate your mortgage payment in Ontario

There are many valuable resources available to home buyers that can help you make more informed decisions throughout the entire home buying process. One of the most useful tools you’ll find is nesto’s Ontario Mortgage Calculator. This enables you to calculate your estimated monthly mortgage payment alongside the corresponding amortization schedule. 

Calculating mortgage payments is no longer a difficult task thanks to nesto. This is vital information to keep in mind before you even start home shopping so that you understand what you can comfortably afford.

Our Ontario Mortgage Calculator allows you to easily input information such as the home’s purchase price, your anticipated down payment, the interest rate and amortization period as well as payment frequency. You can also play around with the variables to see how specific changes will impact your monthly mortgage payment amount. 

Ontario mortgage payment calculator

How to Calculate Mortgage Payments in Ontario

In order to estimate your Ontario mortgage payment, you simply need to gather some key information. This includes the amount of the mortgage (the purchase price of the house, minus your down payment, plus mortgage insurance if applicable), the interest rate you anticipate paying or have already been offered, and the amortization period (the number of years the payments will be spread across broken down into months). Although there’s a mathematical equation for determining your mortgage payments manually, it’s much easier to let nesto’s Ontario Mortgage Calculator do the work for you. 

Are rates different in Toronto, Ottawa and other cities?

Mortgage rates in Ontario vary by lender, so rates may be higher in more rural areas where fewer lenders are willing to lend. But, in major cities such as Toronto and Ottawa, rates are similar. 

Ontario & Canada regulations, taxes and fees

Mortgage regulations are set by the federal Ministry of Finance and help protect both home buyers and lenders. These regulations include guidelines on minimum down payments, maximum amortization periods and when mortgage default insurance is required.

These key regulations pertain to Ontario and all other areas of Canada:

  • The minimum down payment is 5% of the purchase price for a home valued at $500,000 or less and 10% for the portion of the purchase price above $500,000 (See: How Much Do You Need for a Down Payment in Canada)
  • The maximum amortization is 25 years for down payments under 20% and 35 years for higher down payments (See: What is an Amortization Period?)
  • Mortgage default insurance – often referred to as ‘CMHC insurance’ – must be purchased any time a down payment amount is below 20% of the purchase price (See: Mortgage Default Insurance)

Most taxes and fees are set at the provincial level. In Ontario, in addition to the property purchase price, buyers must also pay the provincial sales tax (PST) for mortgage insurance as well as land transfer taxes (LTT). (See: Land Transfer Tax Calculator)

For those purchasing in Toronto, a second set of municipal LTT applies in addition to the Ontario LTT. 

There’s also a non-resident speculation tax (NRST), which is a 15% tax on the purchase or acquisition of an interest in residential property located in the Greater Golden Horseshoe Region by individuals who aren’t citizens or permanent residents of Canada, or by foreign corporations (foreign entities) and taxable trustees.

The NRST applies in addition to the general LTT in Ontario (and municipal LTT in Toronto, if applicable)

Canadian Ministry of Finance Mortgage Guidelines

The minimum down payment in Canada

For properties under $500,000 the minimum down payment is 5%. For properties over $500,000, the minimum downpayment is 5% of the first $500,000 and 10% of the amount exceeding $500,000. Anything over $1 million requires at least 20% down payment. Rental properties that will not be owner occupied also require at least 20% down payment.

The maximum amortization period

25 years for purchases with less than 20% down payment. With more than 20% down payment up to 40 years may be possible, however anything over the standard 30 years comes with substantially higher rates and fees.

Mortgage default insurance

Required for purchases with less than 20% down payment, to insure the lender in case of default. The borrower pays the premium of up to 4% which gets added to the mortgage amount.

How nesto works

We offer all the help of a mortgage broker, without the commission. Simply put, our salaried mortgage advisors are rewarded based on your satisfaction. We’re here to help you reach your goal and guide you through the complicated world of home financing. #yesyoucan #empowermentisthenewsexy

Every mortgage professional knows the market’s best rates every time they check their email. Only a few of them will give you that rate without making you work for it. nesto’s here to change the industry for this very reason. You always get the best rate upfront with nesto.