Mortgage Сalculator in Toronto of March 2025

What is the Toronto mortgage calculator?

With a Toronto 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 Toronto mortgage calculator on Finanso?

The Finanso Toronto 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 Toronto

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 Toronto 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 Toronto, enter the values for the essential parameters of your mortgage into the designated fields in the Finanso Toronto 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 Toronto

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 Toronto 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 Toronto 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 Toronto

A mortgage calculator taking into account 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 Toronto 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 Toronto

The mortgage loan term in Toronto and other parts of Canada typically ranges from 6 months to 10 years. Borrowers can choose a shorter term if they want to pay off their mortgage faster, while a longer term may lower their monthly payments. The most common mortgage term in Canada is five years.

What is the minimum mortgage amount in Toronto?

The minimum mortgage amount in Toronto and other parts of Canada varies depending on the lender and type of mortgage. However, some lenders may have a minimum mortgage amount of $50,000 or $100,000, while others may have no minimum. Therefore, it's best to check with specific lenders for their minimum mortgage requirements.

What is the maximum mortgage amount in Toronto?

The maximum mortgage amount in Toronto and other parts of Canada depends on several factors, including the borrower's income, credit score, and the value of the purchased property. Most lenders follow the guidelines the Canada Mortgage and Housing Corporation (CMHC) set, which states that the maximum mortgage amount cannot exceed 95% of the property's value. Additionally, the borrower's total debt-to-income ratio must not exceed 44%. These are general guidelines, and the maximum mortgage amount can vary depending on the lender's specific policies. It is best to check with individual lenders for their specific mortgage lending limits.

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 Toronto?

The amount you need for a down payment on a mortgage loan in Toronto and other parts of Canada depends on several factors, including the purchase price of the property and the type of mortgage you choose.

For homes with a purchase price of less than $500,000, the minimum down payment is 5% of the purchase price. For homes with a purchase price between $500,000 and $999,999, the minimum down payment is 5% on the first $500,000 and 10% on the remaining amount. And for homes with a purchase price of $1 million or more, the minimum down payment is 20%.

It's important to note that these are minimum requirements the government sets, and many lenders may require a higher down payment. Additionally, some types of mortgages, such as those insured by the Canada Mortgage and Housing Corporation (CMHC), may require a higher down payment. Therefore, it is best to check with individual lenders for their specific down payment requirements.

Who can take out a mortgage in Toronto?

In Toronto and other parts of Canada, anyone who meets the eligibility criteria set by lenders can take out a mortgage. The eligibility criteria typically include the following:

• Age: Most lenders require the borrower to be 18 years old or older.
• Residency: Borrowers must be Canadian citizens or permanent residents or have valid work permits.
• Income: Borrowers must have a stable source of income that can support mortgage payments.
• Credit score: Lenders will typically check the borrower's credit score to assess their creditworthiness. A good credit score can improve the chances of getting approved for a mortgage.
• Down payment: Borrowers must have a down payment that meets the lender's requirements.
• Employment: Lenders will want to see stable employment history.

It is best to check with individual lenders for their specific eligibility criteria. Additionally, the eligibility criteria can vary based on the type of mortgage sought and the lender's policies.

Types of mortgages in Toronto

In Toronto, as well as in other parts of Canada, there are several types of mortgages available, including:

1. Conventional Mortgages. This is the most common type of mortgage in Canada. Conventional mortgages are not insured by the government and typically have stricter eligibility criteria.
2. High-Ratio Mortgages. This type of mortgage is insured by the Canada Mortgage and Housing Corporation (CMHC) and allows borrowers to finance a higher percentage of the property value with a smaller down payment.
3. Fixed-Rate Mortgages. With a fixed-rate mortgage, the interest rate remains the same for the mortgage's term. This mortgage provides stability, as the monthly payments do not change.
4. Variable-Rate Mortgages. With a variable-rate mortgage, the interest rate can change over time based on market conditions. This type of mortgage usually starts with a lower interest rate than a fixed-rate mortgage, but the monthly payments can increase if interest rates go up.
5. Open Mortgages. An open mortgage allows the borrower to make prepayments, pay off the mortgage in full, or break the mortgage at any time without penalty.
6. Closed Mortgages. A closed mortgage has restrictions on prepayments, and penalties may apply if the mortgage is broken before the end of the term.

It's important to consider your financial situation, goals, and risk tolerance when choosing a mortgage type. It is best to discuss your options with a financial advisor or a mortgage specialist to determine the best mortgage for your needs.

Where to get a mortgage in Toronto?

There are several options for getting a mortgage in Toronto, including:

1. Banks: Most of the major banks in Canada offer mortgage services, including Royal Bank of Canada (RBC), TD Bank, Bank of Nova Scotia (Scotiabank), and Canadian Imperial Bank of Commerce (CIBC).
2. Credit Unions: Credit unions are member-owned financial institutions that offer mortgage services to their members. For example, Meridian, AlternaSavings, Desjardins, etc.
3. Online Lenders: A growing number of online lenders offer mortgages in Canada, including Tangerine and Equitable Bank.