Your monthly mortgage payment
A fixed-rate mortgage is paid in equal monthly payments. Early on, most of each payment is interest; later, more goes to principal. The payment combines the loan amount (price minus down payment), the rate and the amortization. Canadian fixed mortgages compound semi-annually.
Remember to budget for property tax, insurance and — under 20% down — CMHC default insurance, which add to the real cost.
Common questions
Principal and interest on a fixed-rate mortgage. It excludes property tax, home insurance and CMHC mortgage default insurance (required with less than 20% down).
At least 5% on the first $500,000 (more above that), and 20% to avoid CMHC insurance. A bigger down payment lowers the payment and total interest.
Canadian fixed-rate mortgages are compounded semi-annually by law, which differs slightly from monthly compounding used elsewhere.