Mortgage payment on a $300,000 house in Canada

What a $300K house costs at today’s mortgage rates

The Bank of Canada raised its policy rate by a quarter point to 2.50% on 28 October 2026 (up from 2.25%), citing inflation of around 3% driven by high energy prices, and the big banks lifted prime to 4.70% the next day. Variable-rate payments follow prime, so a typical variable mortgage at prime − 0.75 (3.95%) now costs $1,556 a month on this loan. Fixed rates track 5-year Government of Canada bond yields instead; the median 5-year fixed among lenders on Ratehub.ca was 4.94% on 2 November 2026, with the cheapest insured offer at 4.44% ($1,631 a month). Every 1 percentage point on the fixed rate changes the payment by about $172 a month.

Below the national average. A $300,000 home is 55% cheaper than the $666,538 national average sale price CREA reported for September 2026. At this price the down-payment rule is the simplest it gets: a flat 5% ($15,000) is enough for an insured mortgage, and because the loan is small the CMHC premium — although it is the top 4.00% rate — adds only $11,400 to the balance. Many buyers at this level are first-time buyers in smaller cities or buying condos and townhouses, which means condo fees (half of which lenders count in the GDS ratio) can matter as much as the rate.

What income do you need for a $300,000 house?

Affordability in Canada comes down to two ratios calculated at the qualifying rate. Your gross debt service (GDS) — the stress-tested mortgage payment plus property tax and heating — must be no more than 39% of gross income, and total debt service (TDS), which adds car loans, credit cards and lines of credit, no more than 44%. On a $296,400 mortgage, qualifying at 6.94% means a paper payment of $2,065, so you need about $74,000 a year with no other debts (one earner, or two on about $37,000 each).

The last column shows the real 4.94% payment as a share of a single Ontario earner’s 2026 take-home pay. A $500-a-month car payment raises the income needed by about $5,000, because it eats into the 44% TDS limit. See $75,000 salary after tax and $40,000 salary after tax for the full payslip.

Down payment and CMHC insurance on a $300,000 house

The minimum down payment on a $300,000 house is $15,000 (5.0%). Anything below 20% means the mortgage must carry default insurance from CMHC, Sagen or Canada Guaranty; the premium is a percentage of the loan and is usually added to the mortgage. The table compares down payments; the 30-year column assumes you qualify (first-time buyer or new build when insured) and includes the extra 0.20% premium.

Ontario adds 8% sales tax ($912), Quebec adds 9% sales tax ($1,026), Saskatchewan adds 6% sales tax ($684) on the premium at the minimum down payment, payable in cash at closing — it cannot be added to the mortgage. Moving from the minimum to 10% down cuts the premium rate from 4.0% to 3.1%, and at 20% it disappears.

The stress test on a $300,000 mortgage

The mortgage stress test is the single biggest reason buyers are approved for less than they hoped. The qualifying rate is the greater of 5.25% or your contract rate plus 2 points. For a 4.94% fixed that is 6.94%, turning a $1,714 payment into a $2,065 test payment; for a 3.95% variable it is 5.95% ($1,888), which is why a variable rate needs about $5,000 less income to qualify.

Monthly vs accelerated bi-weekly payments

Canadian lenders offer monthly, semi-monthly, bi-weekly and weekly payments. Plain bi-weekly ($791 × 26) costs the same per year as monthly. Accelerated bi-weekly is half the monthly payment — $857 — every two weeks; because there are 26 pay periods you make the equivalent of 13 monthly payments a year, and on this $296,400 mortgage that saves about $35,000 of interest and 3 yrs 6 mo.

After the first 5-year term

Canadian mortgages are renewed every few years, so the rate above is only locked for the term. Over the first five years you would pay $102,826, of which $68,514 is interest, and still owe about $262,000 at renewal. If rates are 1 point higher then, the payment on the remaining 20 years would be $1,858. At the 30-year amortization the balance after five years is higher, at $272,000.

Neighbouring home prices

25-year amortization at the 4.94% typical 5-year fixed; income needed with no other debts (the $1.5M row uses 20% down).

Tips before you buy a $300K home

FAQ

What is the monthly mortgage payment on a $300,000 house in Canada?

About $1,714 a month with the minimum $15,000 down payment, a 4.94% 5-year fixed rate and a 25-year amortization (typical rate on Ratehub.ca, 2 November 2026). With 20% down it is $1,388. At a 3.95% variable rate the starting payment is $1,556.

What is the minimum down payment for a $300,000 house?

5%, or $15,000. Homes up to $500,000 need 5% down; with less than 20% down you must buy mortgage default insurance.

How much income do I need for a $300,000 house in Canada?

About $74,000 of gross household income with no other debts, assuming the minimum down, a 4.94% 5-year fixed rate qualified at 6.94%, property tax of about $3,000 a year and $100 a month for heating, using the 39% GDS limit.

How much is CMHC insurance on a $300,000 house?

With the minimum $15,000 down the loan-to-value is 95.0%, so the premium is 4.00% of the $285,000 loan: $11,400, added to the mortgage. It is $8,370 with 10% down and nothing with 20% down. Ontario, Quebec and Saskatchewan also charge sales tax on the premium.

How much do accelerated bi-weekly payments save on a $300,000 house?

Paying $857 every two weeks instead of $1,714 monthly pays the mortgage off in about 21 yrs 6 mo instead of 25 years and saves about $35,000 of interest, if the 4.94% rate stayed the same.

Is a 30-year amortization available on a $300,000 house?

With less than 20% down, only if you are a first-time buyer or buying a newly built home (rules since 15 December 2024). The payment would be $1,574 instead of $1,714, including a 0.20% higher CMHC premium. With 20% down a 30-year amortization is widely available: $1,272.

Related mortgage articles

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).