$2,285/month with minimum down · $1,143 accelerated bi-weekly · $98,000 income to pass the stress test — at a 4.94% 5-year fixed.
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Illustrative estimates as of 3 November 2026, not financial advice or a mortgage offer. Rates: typical 5-year fixed 4.94% and variable 3.95% (median of 17 lenders on Ratehub.ca, 2 November 2026); Bank of Canada policy rate 2.50% (raised 28 Oct 2026), prime 4.70%. Your lender’s rate and approval will differ.
The monthly mortgage payment on a $400,000 house in Canada is about $2,285 with the minimum $20,000 down, a typical 4.94% 5-year fixed rate and a 25-year amortization. With 20% down ($80,000) and no CMHC insurance it drops to $1,850. A typical 3.95% variable rate would start at $2,075.
$400,000 house at a glance
25-year amortization at a 4.94% 5-year fixed, semi-annual compounding.
$20,000 min. down$2,285 /month$1,143 accel. bi-weekly$98,000 income needed$15,200 CMHC premium
Mortgage payments on a $400,000 home by rate and amortization
Rate
%
Monthly 25 yrs
Monthly 30 yrs
Bi-weekly
Accel. bi-weekly
Best 5-yr fixed
4.44%
$2,174
$1,979
$1,003
$1,087
Typical 5-yr fixed
4.94%
$2,285
$2,095
$1,055
$1,143
Best 5-yr variable
3.68%
$2,017
$1,815
$931
$1,008
Typical 5-yr variable
3.95%
$2,075
$1,875
$958
$1,038
Fixed +1 pt at renewal
5.94%
$2,514
$2,336
$1,161
$1,257
Stress-test rate
6.94%
$2,753
$2,587
$1,271
$1,377
Mortgage of $395,200 (minimum down + 4.0% CMHC). 30-year figures use the same loan for comparison; an insured 30-year loan carries a 0.20% higher premium. Highlighted row = typical 5-year fixed, 2 November 2026.
Different price, rate or down payment?
Open the Canadian mortgage calculator: any price, down payment and rate, with semi-annual compounding, CMHC insurance and accelerated bi-weekly payments built in.
What a $400K 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 $2,075 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% ($2,174 a month). Every 1 percentage point on the fixed rate changes the payment by about $229 a month.
Below the national average. A $400,000 home is 40% 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% ($20,000) 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 $15,200 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 $400,000 house?
The income you need is set by the stress test, not by the payment you will actually make. 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 $395,200 mortgage, qualifying at 6.94% means a paper payment of $2,753, so you need about $98,000 a year with no other debts (one earner, or two on about $49,000 each).
Scenario
Mortgage
Income needed
Each of 2 earners
Single ON net / mo
Real pmt share
min. down · fixed
$395,200
$98,000
$49,000
$6,072
38%
min. down · variable
$395,200
$91,000
$45,000
$5,645
40%
min. down + $500 debt
$395,200
$101,000
$50,000
$6,215
37%
20% down · fixed
$320,000
$82,000
$41,000
$5,134
36%
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 $2,000, because it eats into the 44% TDS limit. See $100,000 salary after tax and $50,000 salary after tax for the full payslip.
Down payment and CMHC insurance on a $400,000 house
The minimum down payment on a $400,000 house is $20,000 (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.
Down
Amount
CMHC premium
Mortgage
25 yrs fixed
30 yrs fixed
25 yrs variable
5% (min.)
$20,000
$15,200 (4.0%)
$395,200
$2,285
$2,099
$2,075
10%
$40,000
$11,160 (3.1%)
$371,160
$2,146
$1,971
$1,949
15%
$60,000
$9,520 (2.8%)
$349,520
$2,021
$1,856
$1,835
20%
$80,000
—
$320,000
$1,850
$1,696
$1,680
Gold = minimum down payment. Red sliver = the CMHC premium, which is added to the mortgage rather than paid in cash.
Ontario adds 8% sales tax ($1,216), Quebec adds 9% sales tax ($1,368), Saskatchewan adds 6% sales tax ($912) 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 $400,000 mortgage
Every federally regulated lender must check that you could still pay if rates rose. 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 $2,285 payment into a $2,753 test payment; for a 3.95% variable it is 5.95% ($2,517), which is why a variable rate needs about $7,000 less income to qualify.
Qualifying rate = the greater of 5.25% or your contract rate + 2 points. Assumes property tax of 1% of the price, $100/month heating and no other debts.
Monthly vs accelerated bi-weekly payments
Canadian lenders offer monthly, semi-monthly, bi-weekly and weekly payments. Plain bi-weekly ($1,055 × 26) costs the same per year as monthly. Accelerated bi-weekly is half the monthly payment — $1,143 — every two weeks; because there are 26 pay periods you make the equivalent of 13 monthly payments a year, and on this $395,200 mortgage that saves about $47,000 of interest and 3 yrs 6 mo.
Years to pay off at a constant rate. Plain bi-weekly barely changes anything; the “accelerated” versions add one extra monthly payment a year.Mortgage balance by year (rate assumed constant at renewal). The shaded band is the first 5-year term.
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 $137,101, of which $91,352 is interest, and still owe about $349,000 at renewal. At a renewal rate 1 point higher, the remaining 20 years would cost $2,477 a month. At the 30-year amortization the balance after five years is higher, at $363,000.
25-year amortization at the 4.94% typical 5-year fixed; income needed with no other debts (the $1.5M row uses 20% down).
Try your exact numbers
The Canadian mortgage calculator takes any purchase price, down payment, rate and amortization, and shows CMHC insurance and accelerated bi-weekly payments.
Budget for closing costs. Lenders want to see roughly 1.5% of the price in cash on top of the down payment for land transfer tax, legal fees, title insurance and adjustments. Provincial sales tax on the CMHC premium (Ontario, Quebec, Saskatchewan) is also due at closing.
Use your prepayment privileges. Most fixed mortgages let you prepay 10–20% of the original balance each year without penalty. An extra $200 a month on this loan at 4.94% cuts about $47,000 of interest over 25 years.
Plan for renewal, not just today. After the first 5-year term you will still owe about $349,000. Renewal rates could be higher or lower; check what your payment would be at +1 point ($2,514/month at today’s balance).
Watch the 20% line. At 20% down there is no CMHC premium, but uninsured rates are often a little higher. Compare the total cost both ways — sometimes 19% down with insurance is close to 20% down without.
Check the prepayment penalty. Breaking a fixed mortgage early usually costs the greater of three months’ interest or the interest-rate differential (IRD), which can be thousands. Variable mortgages typically charge three months’ interest.
FAQ
What is the monthly mortgage payment on a $400,000 house in Canada?
About $2,285 a month with the minimum $20,000 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 $1,850. At a 3.95% variable rate the starting payment is $2,075.
What is the minimum down payment for a $400,000 house?
5%, or $20,000. 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 $400,000 house in Canada?
About $98,000 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 $4,000 a year and $100 a month for heating, using the 39% GDS limit.
How much is CMHC insurance on a $400,000 house?
With the minimum $20,000 down the loan-to-value is 95.0%, so the premium is 4.00% of the $380,000 loan: $15,200, added to the mortgage. It is $11,160 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 $400,000 house?
Paying $1,143 every two weeks instead of $2,285 monthly pays the mortgage off in about 21 yrs 6 mo instead of 25 years and saves about $47,000 of interest, if the 4.94% rate stayed the same.
Is a 30-year amortization available on a $400,000 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 $2,099 instead of $2,285, including a 0.20% higher CMHC premium. With 20% down a 30-year amortization is widely available: $1,696.
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).