Updated November 2026
Quick answer: on a $500,000 home in Canada with 20% down ($100,000), a $400,000 mortgage at 4.5% over 25 years costs about $2,214 a month. With the minimum down payment, CMHC insurance is added to the loan and the payment rises to about $2,734.
Amounts in Canadian dollars. Canadian fixed-rate mortgages compound semi-annually, which these figures include. Rates change often, so check today's rates before you decide.
Payment by down payment
At a 4.5% rate with a 25-year amortization:
| Down payment | Mortgage before insurance | CMHC premium | Total mortgage | Monthly payment |
|---|---|---|---|---|
| Minimum ($25,000) | $475,000 | 4% | $494,000 | $2,734 |
| 10% ($50,000) | $450,000 | 3.1% | $463,950 | $2,568 |
| 20% ($100,000) | $400,000 | None | $400,000 | $2,214 |
The minimum down payment is 5% of the first $500,000 and 10% of any amount above that, up to $1.5 million. With less than 20% down, you need mortgage default insurance. The premium is added to your mortgage. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium must be paid upfront.
Payment by interest rate
With 20% down ($400,000 mortgage):
| Interest rate | 25-year amortization | 30-year amortization |
|---|---|---|
| 3.5% | $1,997 | $1,791 |
| 4.0% | $2,104 | $1,902 |
| 4.5% | $2,214 | $2,017 |
| 5.0% | $2,326 | $2,135 |
| 5.5% | $2,442 | $2,256 |
| 6.0% | $2,559 | $2,379 |
Over 25 years at 4.5%, you'd pay about $264,168 in interest if the rate stayed the same. In Canada, rates are usually locked for a term of 1 to 5 years, then renewed at whatever rates are on offer then.
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What income do you need?
Lenders check that housing costs fit your income at the stress-test rate: the higher of your contract rate plus 2% or 5.25%. At a 4.5% contract rate, you qualify at 6.5%, where the payment is $2,679 a month.
Adding about $417 a month in property tax (1% of the price a year, which varies a lot by city) and $100 for heating, the 39% gross debt service limit means a household income of roughly $98,000 a year, before counting other debts like car loans.
30-year amortization
Since December 2024, first-time buyers and buyers of newly built homes can get a 30-year amortization on an insured mortgage. Uninsured mortgages (20% or more down) can usually be amortized over 30 years too. A longer amortization lowers the payment but adds a lot of interest over time.
Other Canadian home prices: $400,000, $600,000, $750,000. Comparing countries? See the mortgage payment on a $500,000 house in the US, or check $100,000 after tax in Ontario.
Frequently asked questions
What is the monthly payment on a $500,000 house in Canada?
With 20% down, a $400,000 mortgage at 4.5% over 25 years is about $2,214 a month. Your rate, down payment and amortization change this.
How much do I need to put down on a $500,000 house in Canada?
The minimum is $25,000. With less than 20% down ($100,000), you also pay CMHC mortgage insurance, which is added to your mortgage.
What income do I need for a $500,000 house in Canada?
Roughly $98,000 a year with 20% down at a 4.5% rate, after the stress test, assuming no other debts. Lenders also check total debt payments.
How is CMHC insurance calculated?
It's a percentage of your mortgage: 4% with 5% to 9.99% down, 3.1% with 10% to 14.99% down and 2.8% with 15% to 19.99% down. No insurance is needed with 20% or more down.