How the numbers are worked out
Every article uses the same inputs, kept in one place so they can be updated together: the Bank of Canada’s 2.50% policy rate (28 October 2026), big-bank prime of 4.70%, and the median 5-year fixed and variable rates from Ratehub.ca’s 17-lender tables on 2 November 2026. Down payments follow the federal rules in force since 15 December 2024; CMHC premiums come from CMHC’s published schedule; affordability uses the stress test (greater of 5.25% or contract + 2%) with CMHC’s 39% GDS and 44% TDS limits. Take-home pay figures come from our Canada salary after tax engine. Rates change daily, so treat everything as an estimate.
FAQ
How much is a mortgage payment in Canada?
On the $666,538 national average home with the minimum down payment, about $3,758 a month at a typical 4.94% 5-year fixed over 25 years.
What are typical mortgage rates in Canada now?
On 2 November 2026 the median 5-year fixed among 17 lenders on Ratehub.ca was 4.94% (lowest 4.44%) and the median 5-year variable 3.95% (lowest 3.68%). The Bank of Canada policy rate is 2.50% and prime 4.70%.
How are Canadian mortgage payments calculated?
Fixed-rate payments use semi-annual compounding: the monthly rate is (1 + r/2)^(1/6) − 1, then the standard annuity formula applies. Variable mortgages generally compound monthly.
Are these figures a mortgage offer?
No. They are estimates using typical rates. Your rate depends on your lender, down payment, credit and the term you choose.
See also: Canadian mortgage calculator · Canada salary after tax · Ontario take-home pay.
Assumptions & sources
- Bank of Canada raised the target for the overnight rate by 25 basis points to 2.50% on 28 October 2026 (Bank Rate 2.75%, deposit rate 2.45%); next decision 9 December 2026. Big-bank prime rose to 4.70% on 29 October 2026.
- Typical rates: 4.94% 5-year fixed and 3.95% 5-year variable are the median of the 17 lenders listed in Ratehub.ca’s rate tables updated 2 November 2026 (fixed range 4.44%–5.99%, variable 3.68%–4.70%). Insured (high-ratio) mortgages often get slightly lower rates than uninsured ones.
- Fixed-rate payments use Canadian semi-annual compounding (Interest Act); variable-rate payments use monthly compounding, which most lenders apply to variable mortgages. Rates are assumed constant for the whole amortization.
- CMHC homeowner premiums on the loan amount: 4.00% above 90% loan-to-value, 3.10% for 85.01–90%, 2.80% for 80.01–85%, plus 0.20% for amortizations over 25 years. Provincial sales tax on the premium in Ontario (8%), Quebec (9%) and Saskatchewan (6%) must be paid in cash at closing.
- Minimum down payment (Department of Finance rules from 15 December 2024): 5% of the first $500,000, 10% of the portion from $500,000 to $1.5 million; 20% at $1.5 million or more, where default insurance is not available. 30-year insured amortizations: first-time buyers and buyers of new builds.
- Stress test: qualify at the greater of 5.25% or the contract rate + 2 points (OSFI Guideline B-20; the same floor applies to insured loans). Income needed uses CMHC’s 39% GDS / 44% TDS limits, property tax of 1% of the price a year and $100/month heating. Take-home pay: 2026 Ontario, from our Canada salary after tax engine.
- National average price: CREA, September 2026 ($666,538, −1.6% year over year).