Get This Low Rate

Mortgage cost breakdown

Monthly Payment

CMHC Insurance

You have chosen to make a down payment below 20%. Under the regulations of the Office of the Superintendent of Financial Institutions (OSFI), you are required to purchase mortgage default insurance, also known as CMHC insurance.

Your CMHC insurance cost is $13,950.00. We have already included your insurance cost into the mortgage principal. For more information, see the Glossary and FAQ below.

Amorization Chart

Important Note for Self-Employed Home Buyers

Most home buyers will obtain a mortgage from an A-lender, usually a major bank or credit union. However, many self-employed home buyers experience difficulty passing their federally regulated stress tests. Your affordability may be significantly reduced if you apply for a mortgage at an A-lender institution.

Read More…

Which Mortgage Is Right For You?

What is an open mortgage?

An “open-term mortgage” is an appealing option to those who plan on paying off their mortgage sooner rather than later. This type of mortgage can be repaid fully or partially at any time without prepayment interest fees. If you want to convert them to another term, you can do so at anytime again without prepayment interest fees. The interest rates for open mortgages tend to be higher than those of closed mortgages because they have such flexibility and options for you as a client. Keep in mind these types of mortgages may have other fees involved as well, so it is best to talk to one of our mortgage agents to ensure you understand all the terms!

What is a closed mortgage?

A “closed-term mortgage” is the most common choice for people who aren’t planning to pay off their mortgage in the near future. The interest rates for closed term mortgages tend to be lower than that of open mortgages. With closed term mortgages, you’re able to save on interest costs, and hopefully, this will help you to pay your mortgage back faster. Fixed or variable options are available for closed term mortgages, but there’s a restriction on the principal amount that you can pay towards our mortgage each year.

If you want to renegotiate your rate, you will need to pay a prepayment charge. Also, you will need to pay this prepayment charge, if you wish to pay off the balance of your mortgage before the end of the term or if you want to prepay more money than your mortgage will allow you to.Also there are some closed mortgages that you are not allowed to pay off the mortgage at all until end of term which can make it hard to do refinancing in the future, again these are common terms that can cost thousand of dollars in the future and it is best to ask one of our mortgage agents to assist you in obtaining your mortgage so we can explain all the terms to ensure a smooth mortgage transaction.

Prepayment Charges

With prepayment charges, you have the flexibility to increase your monthly payments or to pay the whole thing off. Contact our team of mortgage agents to find out more about your prepayment options.

Comparison: Variable vs. Fixed Mortgage Rates

Fixed Mortgage Rates

More than 50% of Canadians have fixed mortgage rates, which means the monthly payment stays the same over the full term. You are protected against fluctuating interest rates so that it can set up and you don’t have to worry about it. If you want stability – this may be the best option for you, but we have to look at your complete financial picture to ensure this.

Variable Mortgage Rates

With a variable mortgage, your rates are typically lower, but they will vary over the term. Your payments will be based on market behavior, and this will affect how much you are paying. The amount that you are paying will change over time but can also reduce the amount of interest you pay over your mortgage term or even help you pay off your mortgage faster.

Glossary and FAQ

Down Payment

The down payment is the amount you will pay upfront to obtain a mortgage.

What’s my minimum down payment?

Your minimum down payment depends on the purchase price of your property.

  • If your purchase price is under $500,000, your minimum down payment is 5% of the purchase price.
  • If your purchase price is $500,000 to $999,999, your minimum down payment is 5% of the first $500,000, plus 10% of the remaining portion.
  • If your purchase price is $1,000,000 or more, your minimum down payment is 20% of the purchase price.

If you’re self-employed or have poor credit, your lender may require a higher down payment.

Are there additional costs or restrictions associated with small down payments?

Yes. If your down payment is below 20% of the purchase price,

  • you will be required to purchase mortgage default insurance, and so
  • your amortization period cannot exceed 25 years.

For more information, see the section on CMHC insurance below.


The amortization period is the total length of time over which you plan to pay off your mortgage.

What amortization period should I choose?

While we cannot give advice for your specific situation, here are some general guidelines:

  • The most common amortization period in Canada is 25 years. Unless you have specific concerns, a 25 year amortization works well in most cases.
  • Choosing a shorter amortization period will lower your lifetime interest cost, but will result in a higher monthly or bi-weekly payment.
  • If you choose an amortization period of over 25 years, you must make at least 20% down payment. See the section on CMHC insurance below.


The term of your mortgage is the length of time for which you sign a legal agreement with your lender. For the length of the term, you are obligated to their conditions and penalties.

What term should I choose?

The most common term length in Canada is 5 years. Unless you have specific concerns, a 5-year term generally works well. Each lender will offer different options for term length and rates; contact your lender for more details.

For professional help with determining which term is right for you, please .

What happens at the end of a term?

At the end of each term, you have the option to renew or refinance your mortgage.

  • Renewing your mortgage involves signing for another term with your existing lender. Your monthly payment and interest rate may change.
  • Refinancing your mortgage involves signing a new term agreement, possibly with a different rate or lender. Refinancing allows you to take advantage of lower rates or better options not offered by your current lender.

Interest Rates

The interest rate determines how much interest is added to the unpaid portion of your mortgage loan.

How does the interest rate affect the cost of my mortgage?

A higher interest rate can significantly increase your monthly or bi-weekly payment, as well as inflate the term and lifetime cost of your mortgage. Conversely, a lower interest rate can save you tens of thousands of dollars over time.

What’s the difference between a fixed and variable rate?

  • A fixed interest rate is guaranteed to remain unchanged for the length of your mortgage term.
  • A variable interest rate can change during your mortgage term. This will not affect your mortgage payment for the duration of the term, but adjusts what percentage of your payment goes to paying off the mortgage principal.

What controls a variable interest rate?

Your variable interest rate is directly controlled by your lender via their prime rate. Each lender can choose to increase or decrease their own prime rate, in turn increasing or decreasing your variable interest rate.

Lenders will usually adjust their prime rate to reflect changes in the Bank of Canada’s Policy Interest Rate. This means that lenders will tend to have similar or identical prime rates. All major Canadian banks currently have a prime rate of 3.95%.

Getting the lowest rate isn’t always the best option – If you want to become mortgage free sooner then the All in One Mortgage Solution from Citadel Mortgages may be best for you.

How the All in One Mortgage Solution Works for You!

As we always hear, your money should never sit around. In fact, your money should always be working for you! What does this mean, though?

For years the banks have taught us we need to keep our debts including our mortgage separate from our savings, income, and investments, but why? Think about if you have a checking account that has a line of credit attached to it and regular savings account at the bank and you go to deposit your money into the bank. Which account will the bank choose to put the money in? (Hint it is never the account with the line of credit.) The banks have always wanted us to keep our debt high to make interest, but the secret is to have our money work for us, not the bank!

Traditional Banking

Traditional banking keeps what you have (your earnings, savings, short-term investments, etc.) separate from what you owe (your mortgage, loans, credit cards etc.). By doing this, you earn a lower rate of interest on your deposits and savings while paying a higher rate of interest on what you borrow, which are your debts like your mortgage and credit cards. This keeps you in debt longer and paying more interest over time, making it harder for you to retire at a decent age!

All in One Mortgage Solution

However, what if your deposits and your borrowing were combined into a single account so that every dollar you earned automatically went towards paying down your debt? That’s exactly what the All in One Mortgage Solution provides! It brings your mortgage, savings, and income together to help you: save thousands in interest; be debt-free years sooner; enjoy financial flexibility; and simplify your everyday banking. This mortgage product is also calculated daily with interest rather than the standard way of semi-annually, because the interest is calculated daily this offers significant savings over a traditional mortgage. With the All in One Mortgage Solution, every dollar you deposit goes towards paying off your debt, every day

Payment Frequency

The payment frequency determines how often you will make mortgage payments.

What’s the difference between monthly and bi-weekly payment frequency?

  • A monthly mortgage payment is made once per month (12 times per year).
  • A bi-weekly payment is made once every two weeks (26 times per year).

Which payment schedule is right for me?

While we cannot give advice for your specific situation, here are some general guidelines:

  • Most people choose to synchronize their mortgage payments with their monthly or bi-weekly paycheck.
  • Choosing a bi-weekly payment schedule will slightly lower your term and lifetime mortgage cost.

CMHC Insurance

Mortgage default insurance, also known as Canada Mortgage and Housing Corporation (CMHC) Insurance, protects your mortgage lender in the case of default.

Do I need CMHC insurance?

Under Office of the Superintendent of Financial Institutions (OSFI) regulations, you are required to purchase CMHC insurance if your down payment is below 20%.

You may be ineligible for CMHC insurance if:

  • your purchase price is $1,000,000 or above, or
  • your amortization period is longer than 25 years.

In these cases, you must make a down payment of 20% or higher.

How much does CMHC insurance cost?

Your CMHC insurance cost is calculated as a percentage of your purchase price. The exact percentage depends on your down payment amount, and decreases for larger down payments.

Since March 17, 2017, the following CMHC premiums apply in most situations:

Down Payment (% of Purchase Price) 5–9.99% 10–14.99% 15–19.99%
CMHC Insurance (% of Mortgage Amount) 4.00% 3.10% 2.80%

How do I pay for CMHC insurance?

Your lender is actually the party responsible for paying CMHC insurance costs. In the majority of cases, your lender will pass these costs down to you by adding the CMHC insurance premium to your mortgage loan amount. This will slightly increase your monthly or bi-weekly payment.

In some cases, your lender may allow you to pay CMHC insurance costs as a lump-sum, or not pass down the cost to you at all. Contact your lender for more details.

What is a high-ratio mortgage?

A mortgage with a down payment below 20% is known as a high-ratio mortgage. The term ratio refers to the size of your mortgage loan amount as a percentage of your total purchase price.

All high-ratio mortgages require the purchase of CMHC insurance, since they generally carry a higher risk of default.

This calculator is provided for general information purposes only. Yourmortgagecalculators.ca does not guarantee the accuracy of amounts shown, and is not responsible for any consequences of the use of the calculator.

Yourmortgagecalculators.ca does not guarantee the accuracy of the mortgage rates shown online. Yourmortgagecalculators.ca is not a mortgage brokerage or involved in any mortgage lending, we refer our clients to Citadel Mortgages that is a licensed mortgage brokerage. *Rates shown are on approved credit and subject to change without notice.

Please note borrower subject to credit and underwriting approval. Not all borrowers will be approved for conventional financing or equity financing. Receipt of borrower’s application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, Annual APR is subject to approval and underwriting, APR includes all fees and rate which is calculated on a yearly term. APR varies contact us for current rates or more information on a specific product. OAC