Mortgage payment on a $850,000 house in Canada

What a $850K 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 $4,314 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% ($4,520 a month). Every 1 percentage point on the fixed rate changes the payment by about $477 a month.

Just under the old $1 million line. Before 15 December 2024 the insured-mortgage cap was $1 million, so homes in this band were the most expensive you could buy with less than 20% down. The cap is now $1.5 million, but the blended rule still applies: $25,000 on the first $500,000 plus $35,000 on the rest, for $60,000 (7.1%). The price is 28% above CREA’s $666,538 national average.

Down payment and CMHC insurance on a $850,000 house

The minimum down payment on a $850,000 house is $60,000 (7.1%). 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 ($2,528), Quebec adds 9% sales tax ($2,844), Saskatchewan adds 6% sales tax ($1,896) 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.

What income do you need for a $850,000 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 $821,600 mortgage, qualifying at 6.94% means a paper payment of $5,724, so you need about $201,000 a year with no other debts (one earner, or two on about $101,000 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 would not change the income needed here: housing costs alone reach the 39% GDS limit first, which still leaves about $840 a month of room for other debts under the 44% TDS limit. See $205,000 salary after tax and $105,000 salary after tax for the full payslip.

The stress test on a $850,000 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 $4,750 payment into a $5,724 test payment; for a 3.95% variable it is 5.95% ($5,232), which is why a variable rate needs about $15,000 less income to qualify.

Monthly vs accelerated bi-weekly payments

Canadian lenders offer monthly, semi-monthly, bi-weekly and weekly payments. Plain bi-weekly ($2,193 × 26) costs the same per year as monthly. Accelerated bi-weekly is half the monthly payment — $2,375 — every two weeks; because there are 26 pay periods you make the equivalent of 13 monthly payments a year, and on this $821,600 mortgage that saves about $97,000 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 $285,027, of which $189,917 is interest, and still owe about $726,000 at renewal. At a renewal rate 1 point higher, the remaining 20 years would cost $5,150 a month. At the 30-year amortization the balance after five years is higher, at $755,000.

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 $850K home

FAQ

What is the monthly mortgage payment on a $850,000 house in Canada?

About $4,750 a month with the minimum $60,000 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 $3,932. At a 3.95% variable rate the starting payment is $4,314.

What is the minimum down payment for a $850,000 house?

$60,000: 5% of the first $500,000 ($25,000) plus 10% of the remaining $350,000 ($35,000). That is 7.1% of the price.

How much income do I need for a $850,000 house in Canada?

About $201,000 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 $8,500 a year and $100 a month for heating, using the 39% GDS limit.

How much is CMHC insurance on a $850,000 house?

With the minimum $60,000 down the loan-to-value is 92.9%, so the premium is 4.00% of the $790,000 loan: $31,600, added to the mortgage. It is $23,715 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 $850,000 house?

Paying $2,375 every two weeks instead of $4,750 monthly pays the mortgage off in about 21 yrs 6 mo instead of 25 years and saves about $97,000 of interest, if the 4.94% rate stayed the same.

Is a 30-year amortization available on a $850,000 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 $4,364 instead of $4,750, including a 0.20% higher CMHC premium. With 20% down a 30-year amortization is widely available: $3,605.

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).