Monthly payment formula
Loan = price − down payment. Monthly rate r = annual rate ÷ 12. Number of payments n = years × 12. Payment = loan × r(1+r)n ÷ ((1+r)n − 1). This is principal and interest only. It does not include property tax, insurance, condo fees, CMHC insurance, or closing costs.
Worked example
A $500,000 price, $100,000 down, 5% amortized over 25 years is a $400,000 loan. Monthly principal and interest is about $2,326. Property tax, insurance, and condo fees are extra.
In Canada, under 20% down often means default insurance (see the CMHC page) which is usually added to the loan first. This page does not add that premium, so a high-ratio quote from a bank will be higher.
Common questions
Why is this different from my bank quote?
Banks add tax, insurance, and sometimes default insurance. Rate holds and compounding conventions also differ by country.
What down payment should I use in Canada?
Often 5–20%. Under 20% usually means mortgage default insurance. This page does not add that premium.