What is the Montreal mortgage calculator?

With a Montreal mortgage calculator, you can calculate your mortgage payments quickly and easily, given the essential parameters of your loan. By adjusting the figures further and testing down the input parameters, you can see how different mortgage scenarios compare in terms of repayment costs.

How to use the Montreal mortgage calculator on Finanso?

The Finanso Montreal mortgage calculator is easy to use. Just fill out the required fields with the key parameters of your mortgage — the home price, down payment, interest rate, amortization period, payment frequency, and additional details, if necessary. Then, hit the "Calculate" button and get the results.

Option 1. Calculation based on the property price in Montreal

To perform this operation, you will need our simple mortgage calculator that takes into account the loan amount, the term, and the repayment method. You may also be asked to specify the mortgage type or the interest rate if there are several mortgage options and only one calculating tool available on the page. Details necessary for the calculation:

The cost of the property. This field suggests you enter the property price you plan to purchase. Remember that you must make a down payment of at least 5% of the property's price.
The down payment. It is the initial up-front partial payment you have to make at the time of finalizing the transaction. You must purchase mortgage default insurance if your down payment is less than 20%.
The loan term. The mortgage term is the time your mortgage contract is in effect, while amortization is the time it will take you to pay your mortgage in full. The maximum amortization period in Montreal for insured residential mortgages is 35 years.
The mortgage interest rate. Our calculator takes into account the region's peculiarities. By default, the calculator has the average interest rate for the region where you calculate. In addition, minimum and maximum values for the country are embedded. You will see a notification if you input a value that does not correspond to the country.
Payment type. The calculator features the possibility to specify the mortgage type: annuity or linear. Annuity payments are certainly convenient for both the borrower and the lender. Still, the client will expect a more significant overpayment due to a slower principal repayment.

To get an idea of an approximate mortgage payment in Montreal, enter the values for the essential parameters of your mortgage into the designated fields in the Finanso Montreal mortgage payment calculator.

Let's assume you want to purchase a house for $820,000 and make a $250,000 down payment. With a 5-year fixed closed mortgage principal of $570,000 paid over 25 years at a 4.77% interest rate on a bi-weekly basis, your bi-weekly payment will be $1,494. The total payments over the term will constitute $194,249 — $67,349 toward the principal and $126,900 toward the interest.

Option 2. Calculation based on the loan amount in Montreal

Mortgage calculators suitable for such operations feature the early repayment calculation option. The difference between this tool and the simple one is that it is possible to evaluate the mortgage details at once and see the change in the debt amount if early repayment occurs, which may be convenient when you intend to reduce the overpayment. Details necessary for the calculation:

The loan amount. This is the money you receive from the lender to purchase real estate (without considering the down payment). You might consider reviewing the maximum mortgage amounts the Montreal lenders grant at this point.
The loan term. The mortgage term is the time your mortgage contract is in effect, while amortization is the time it will take you to pay your mortgage in full. The maximum amortization period in Montreal for residential mortgages is 35 years.
The interest rate. Our calculator considers the region's peculiarities. By default, the calculator has the average interest rate for the area where you calculate. In addition, minimum and maximum values for the country are embedded. You will see a corresponding notification if you input a value that does not correspond to the country.
Early repayment. This field allows you to choose the type of early repayment (partial or full). Select the repayment date and the amount you are going to pay.

Option 3. Calculation based on the total cost of purchasing a property in Montreal

A mortgage calculator featuring more details is necessary to calculate the total cost of acquiring a property. This calculator differs from the previous tools in that it considers the tax burden, such as annual property taxes, default insurance, and additional expenses, for example, an origination or a brokerage fee. In addition, it allows for more accurate calculations. Details necessary for the calculation:

The cost of the property. In this field, enter the cost of the property you are planning to purchase. Remember that you must make a down payment of at least 5% of the property's price.
The down payment. It is the initial up-front partial payment you have to make when at the time of finalizing the transaction;
The loan term. The mortgage term is the time your mortgage contract is in effect, while amortization is the time it will take you to pay your mortgage in full. The maximum amortization period in Montreal for residential mortgages is 35 years.
The interest rate. Our calculator takes into account the region's peculiarities. By default, the calculator has the average interest rate for the region where you calculate. In addition, minimum and maximum values for the country are embedded. You will see a corresponding notification if you input a value that does not correspond to the country.
Additional data.

Mortgage loan term in Montreal

The term of a mortgage loan in Montreal typically ranges from 6 months to 25 years. The length of the mortgage loan term you choose will impact the amount of your monthly payments and the total interest paid over the life of the loan. Shorter terms usually result in higher monthly payments, but the lower total interest paid, while longer terms result in lower monthly payments but more interest paid over time. Therefore, it is important to consider your budget and long-term financial goals when choosing the term of your mortgage loan.

What is the minimum mortgage amount in Montreal?

The minimum mortgage amount in Montreal is typically set by the lender and can vary from one financial institution to another. Some lenders may have a minimum mortgage amount requirement of $50,000, while others may have a minimum requirement of $100,000 or more. It is important to check with individual lenders for their specific minimum mortgage amount requirements.

Additionally, it's worth noting that the minimum mortgage amount may also be impacted by other factors, such as your credit score, income, and the type of property you are purchasing. For example, if you have a lower credit score or limited income, the minimum mortgage amount you may be eligible for may be lower.

What is the maximum mortgage amount in Montreal?

There is no set maximum mortgage amount in Montreal, as the amount you can borrow will depend on various factors such as your income, credit score, and debt-to-income ratio. Typically, lenders will consider these factors to determine the maximum amount you can borrow for a mortgage loan.

The maximum mortgage amount you can qualify for will be based on the amount you can comfortably afford to repay each month, considering your other debts and living expenses. Most lenders will use a debt-to-income ratio of around 43% to determine the maximum mortgage amount you can afford.

It's important to note that government regulations and lending guidelines may also impact the maximum mortgage amount you can qualify for. In Canada, for example, the Office of the Superintendent of Financial Institutions (OSFI) sets regulations for mortgage lending, including limits on the maximum mortgage amount you can borrow based on the value of the property you are purchasing.

In Canada, the maximum mortgage amount that can be insured by the Canadian Mortgage and Housing Corporation (CMHC) is $1,000,000.

How much do I need for a down payment on a mortgage loan in Montreal?

The amount you need for a down payment on a mortgage loan in Montreal will depend on the type of mortgage you are applying for and the property value you purchase.

The minimum down payment requirement for conventional mortgages, which the government does not insure, is usually 5% of the property's purchase price. However, some lenders may require a higher down payment of 20%, especially for higher-priced properties.

For insured mortgages, which the government backs, the minimum down payment requirement is lower and can be as low as 5% for homes priced up to $500,000. The minimum down payment requirement for homes priced above $500,000 is 5% for the first $500,000 and 10% for the portion above $500,000.

It's important to note that the higher your down payment, the lower your monthly mortgage payments will be and the less interest you will pay over the life of the loan. Therefore, it's always a good idea to save as much as possible for a down payment and work with a lender to determine the best option for your financial situation.

Who can take out a mortgage in Montreal?

In Montreal, anyone who meets the eligibility requirements set by the lender can take out a mortgage loan to purchase a property. In general, to be eligible for a mortgage loan, you will need to:

Have a stable income: Most lenders require that you have a stable source of income, either from employment or self-employment, to repay the mortgage loan.
Have a good credit score: A good credit score is usually considered to be 650 or above and will impact the interest rate you are offered for your mortgage loan.
Be a Canadian resident of the majority of age: Most lenders require that you be a Canadian resident to be eligible for a mortgage loan in Montreal.
Meet income and debt-to-income requirements: Most lenders will consider your income and debt-to-income ratio to determine the maximum mortgage amount you can afford.
Have sufficient funds for a down payment: You will typically need to have enough funds saved for a down payment, ranging from 5% to 20% or more of the property's purchase price.

It's important to note that each lender may have slightly different eligibility requirements, so it's a good idea to check with several lenders to compare your options. Additionally, some lenders may have different requirements for different types of properties, such as condos or multi-unit buildings.

Types of mortgages in Montreal

Several types of mortgages are available in Montreal, each with its terms and conditions. Some of the most common types of mortgages include:

Fixed-rate mortgage. A fixed-rate mortgage has an interest rate that remains the same for the entire term of the loan. This type of mortgage provides stability and predictability, as your monthly payments will not change over time.
Variable-rate mortgage. A variable-rate mortgage has an interest rate that can change based on changes to the prime lending rate. This type of mortgage can offer lower interest rates initially, but the monthly payments can fluctuate over time.
Short-term mortgage. A short-term mortgage has a term of less than one year and typically has a higher interest rate than a long-term mortgage. This type of mortgage can be a good option if you plan to sell your property or refinance in the near future.
Long-term mortgage. A long-term mortgage has a term of 10 years or more and typically has a lower interest rate than a short-term mortgage. This type of mortgage can provide lower monthly payments and more stability over the long term.
Insured mortgage. An insured mortgage is backed by the government and typically requires a lower down payment. This type of mortgage can be a good option for first-time homebuyers or those with limited funds for a down payment.
Conventional mortgage. A conventional mortgage is not backed by the government and typically requires a larger down payment. This type of mortgage can offer more flexible terms and conditions but may have higher interest rates.

It's important to carefully consider your financial situation and goals when choosing a type of mortgage. In addition, it may be helpful to speak with a lender or financial advisor to determine the best mortgage option for your needs.

Where to get a mortgage in Montreal?

There are several places where you can get a mortgage in Montreal, including:

Banks: Most major banks and credit unions offer mortgage loans and have branches throughout Montreal. You can visit a branch, speak with a mortgage specialist, and apply for a loan in person. For example, BMO, TD, Scotiabank, etc.
Online lenders: Several online lenders offer mortgage loans in Montreal. You can complete the application process online and receive an approval within a few hours or days. For example, Desjardins, Strathcona credit union, etc.
Mortgage brokers: Mortgage brokers act as intermediaries between borrowers and lenders and can help you find the best mortgage loan for your needs. Brokers have access to a wide range of mortgage products from multiple lenders and can help you compare your options.
Credit unions: Credit unions are financial institutions owned by their members and offer various financial services, including mortgage loans. Credit unions typically offer more personalized service and lower interest rates than banks.

It's important to shop around and compare your options before choosing a lender for your mortgage loan. When comparing lenders, consider factors such as interest rates, fees, and customer service. Additionally, it's always a good idea to review the fine print of any mortgage loan offer before accepting it to ensure you understand the terms and conditions of the loan.

Mortgage Сalculator in Montreal of March 2025