MORTGAGE HELP

Down Payment
In Canada, your minimum down payment depends on the purchase price, not a flat percentage. For homes under $500,000, the minimum is 5%. For homes between $500,000 and $1,499,999, it's 5% on the first $500,000 plus 10% on the portion above that. For homes at $1.5 million or more, the minimum jumps to 20%. Putting down less than 20% means your mortgage requires mortgage default insurance (commonly called CMHC insurance), which adds a premium to your loan amount. The more you put down, the lower that premium, and the lower your monthly payments — or the more home you can afford.

Amortization Period
Your amortization period is the total length of time it will take to pay off your mortgage in full — typically 25 years in Canada. First-time home buyers and buyers of newly built homes can now extend this to 30 years, which lowers your monthly payment but increases the total interest paid over the life of the loan. This is different from your mortgage term (below), which is shorter.

Mortgage Term
Unlike the US, Canadian mortgages are renewed periodically rather than locked in for the entire amortization period. Your term is the length of your current agreement with your lender — commonly 1 to 5 years — after which you'll renew, often at a different rate. Choose from common terms in the calculator to see how they affect your rate and payment.

Loan Type
There are two main mortgage types in Canada: fixed-rate and variable-rate. Fixed-rate mortgages lock in the same interest rate for your entire term, so your payment stays the same and your total interest is predictable — a popular choice for buyers who want stability. Variable-rate mortgages have an interest rate that moves with the lender's prime rate, which itself follows the Bank of Canada's policy rate.

Variable rates often start lower than fixed rates, but your payment (or the portion going to principal) can change if rates move.

Interest Rate
This field is pre-filled with a current average Canadian mortgage rate. Your actual rate will vary based on factors like your credit score, down payment size, and whether you choose a fixed or variable term. All insured mortgages are also subject to a federal stress test, qualifying you at a rate higher than what you'll actually pay.

Property Tax Rate
The mortgage payment calculator includes estimated property taxes based on the home's assessed value, using typical Kelowna and Central Okanagan rates. You can edit this in the advanced options to match your specific property.

Home Insurance
Home insurance is typically required by your lender as a condition of your mortgage. You can edit this number in the calculator's advanced options.

Strata Fees
If you're purchasing a condo, townhome, or another property within a strata corporation, you'll pay monthly strata fees (the BC equivalent of HOA fees) to cover shared building maintenance, insurance, and amenities. These vary widely by building and are worth confirming directly from the listing or strata documents.