Question 1

What is CMHC insurance and when do I need it?

Accepted Answer

CMHC insurance is required when your down payment is less than 20% of the home price. The premium ranges from 2.8% to 4.0% of the mortgage amount.

Question 2

What is the mortgage stress test in Canada?

Accepted Answer

The mortgage stress test requires you to qualify at the higher of your contracted rate +2% or the Bank of Canada qualifying rate.

Question 3

How much down payment do I need in Canada?

Accepted Answer

The minimum down payment is 5% for homes up to $500,000. For homes between $500,000 and $1,499,999, it is 5% on the first $500,000 and 10% on the remainder. Homes $1.5M+ require 20% down.

Question 4

Fixed vs variable rate — which is better?

Accepted Answer

Fixed rates offer payment certainty. Variable rates are typically lower initially and may save money if rates stay flat or decrease. Your choice depends on risk tolerance.

Question 5

How does payment frequency affect my mortgage?

Accepted Answer

Switching from monthly to accelerated bi-weekly payments means you make the equivalent of one extra monthly payment per year, saving thousands in interest.

	Scenario 15.5% Fixed / 5yr	Scenario 25% Variable / 3yr
Monthly Payment	$2,442	$2,326
Total Interest	$332,470	$297,926
Total Cost	$732,470	$697,926
Savings vs Scenario 1	--	+$34,544

Compare Mortgage Rates

Scenario 1

Scenario 2