Purchase Calculator

Our purchase calculator allows for a comprehensive analysis of housing costs. This mortgage calculator takes into account rental income, property taxes, condo fees and other expenses to help you determine the total monthly cost. Calculate the total housing expenses or rental cash flow. It calculates the closing costs at the same time.

Purchase Cost Analyzer


LocationIn this calculator, Location is used to calculate the closing costs such as land (title) transfer tax and PST on mortgage insurance.

Down payment

A down payment for a mortgage is the initial sum of money that a homebuyer contributes toward the purchase of a property. It is typically expressed as a percentage of the home’s purchase price.
The minimum down payment required varies but is often 5% for homes valued up to $500,000, For homes with a purchase price between $500,000 and $1 million, the minimum down payment is 5% of the first $500,000 and 10% of the remaining amount above $500,000. For homes with a purchase price of $1 million or more, a minimum down payment of 20% is typically required.
A larger down payment reduces the mortgage amount needed, which can lead to lower monthly payments and potentially more favorable interest rates. Down payments can come from personal savings, gifts, or other eligible sources, but they are a crucial financial step in buying a home in Canada.

Payment Frequency

Mortgage payment frequency refers to how often borrowers make payments on their home loans, with common options including monthly, biweekly, or semi-monthly. Monthly payments are made once every month, while biweekly payments divide the yearly total into 26 payments. Semi-monthly payments split the monthly amount into two equal parts, usually due on the 1st and 15th of each month. The selected payment frequency can significantly affect the total interest paid and the pace at which the loan is retired. Opting for more frequent payments can result in lower interest expenses and a quicker loan repayment.

Fixed Rate

A fixed-rate mortgage is a type of home loan where the interest rate remains unchanged for the entire loan duration, which typically spans from 1 to 10 years. This means that borrowers make steady, predictable monthly mortgage payments at the same interest rate, regardless of shifts in market interest rates. Fixed-rate mortgages provide financial stability and shield borrowers from the risk of increasing interest rates, making them a favored choice for homeowners who prioritize budget consistency and wish to safeguard against rising borrowing costs.

Variable Rate

A variable rate mortgage in Canada, commonly known as an adjustable-rate mortgage (ARM), is a home loan where the interest rate can vary based on shifts in the lender’s prime rate or a specified benchmark. These mortgages typically offer lower initial interest rates compared to fixed-rate mortgages, but they are subject to periodic changes that can impact monthly payments. Borrowers may benefit from lower costs if interest rates remain low, but they also bear the risk of higher payments if rates increase. Variable rate mortgages often have terms like 3, 5, or 10 years, during which the rate remains steady before the possibility of adjustment. They are suitable for borrowers comfortable with interest rate fluctuations in pursuit of potential savings.

Rate Term

The mortgage term refers to the mutually agreed period in which the borrower and lender commit to specific terms and conditions, including the interest rate. In Canada, typical mortgage terms span from 1 to 10 years, with 5 years being the most common. During this term, the interest rate remains consistent for fixed-rate mortgages or variable for adjustable-rate mortgages, as stipulated in the contract. When the term concludes, borrowers have options: they can renew the mortgage at prevailing rates, clear the remaining balance, or opt for refinancing. The chosen term duration plays a vital role in determining the predictability and overall cost of the mortgage during that timeframe.


In Canada, mortgage amortization signifies the total duration required to completely settle a loan, covering both the principal and interest. Usual amortization periods range from 25 to 30 years, although they may differ. Opting for a lengthier amortization period results in lower monthly payments but higher overall interest expenses, whereas a shorter term leads to increased monthly payments but a reduction in the total interest paid. Importantly, amortization does not necessarily align with the mortgage term, which is typically 1 to 10 years, during which interest rates are either fixed or adjustable. Borrowers possess the flexibility to select an amortization period that aligns with their financial objectives and capacity.

Pay your mortgage faster

there are several strategies that homeowners can use to pay off their mortgages faster and save on interest costs:

  1. Mortgage Payment Increase: This strategy involves increasing your regular mortgage payment amount. You can usually do this when you renew your mortgage or, in some cases, even during your current mortgage term. By increasing your regular payments, you’re effectively putting more money towards paying down the principal amount of the loan. This can significantly reduce the total interest you pay over the life of the mortgage and help you pay off your mortgage faster. However, it also means budgeting for higher monthly payments.
  2. One-time Pre-Payment: With this approach, you make a lump-sum payment towards your mortgage principal. Homeowners can typically do this at any time during their mortgage term, subject to the terms and conditions of their mortgage agreement. This extra payment goes directly towards reducing the principal, thus lowering the overall interest costs and accelerating the mortgage’s payoff.
  3. Annual Pre-Payment: Many mortgage agreements in Canada allow borrowers to make an annual pre-payment, often up to a certain percentage of the original mortgage amount (commonly around 10-20%). This pre-payment is made in addition to the regular monthly mortgage payments. It also goes directly toward reducing the principal balance, which reduces both the principal and interest paid over time, leading to a quicker mortgage payoff.

These strategies provide homeowners with options to proactively manage their mortgage and potentially save money by paying off the loan faster and reducing interest costs. The specific terms and conditions of your mortgage may vary, so it’s essential to review your mortgage agreement and discuss these options with your lender or mortgage professional to determine the best approach for your financial goals.

Add Property Expenses

Property Tax

Property tax in Canada is a tax imposed by municipal governments on the owners of real estate property within their jurisdiction. It is a primary source of revenue for funding local government services such as schools, road maintenance, public safety, and other community amenities. Here’s how property tax works in Canada:

  1. Assessment: Local authorities assess the value of each property within their jurisdiction periodically. This assessment is based on various factors, including the property’s location, size, condition, and recent property sales in the area.
  2. Tax Rate: Municipalities set a property tax rate, often expressed as a percentage of the property’s assessed value. This rate can vary widely from one municipality to another.
  3. Calculation: Property tax is calculated by multiplying the assessed value of the property by the property tax rate. The resulting amount is the annual property tax owed by the property owner.
  4. Payment: Property taxes are typically paid annually or semi-annually, but payment schedules can vary by municipality. Property owners receive a property tax bill detailing the amount owed and payment due dates.
  5. Use of Funds: The revenue generated from property taxes is used to fund local government services and infrastructure projects. These services can include public schools, parks, libraries, waste collection, police, and fire services, among others.
  6. Exemptions and Rebates: Some provinces and municipalities offer property tax exemptions or rebates for certain categories of property owners, such as seniors, low-income individuals, or properties used for specific purposes like farming.

Failing to pay property taxes can result in penalties, interest charges, or even the sale of the property to cover the outstanding tax debt. Property tax rates and regulations can vary significantly across provinces and municipalities in Canada, so it’s advisable to consult with local authorities or tax professionals for specific details related to your property.

Condo Fee

A condo fee, also known as a strata fee, is a regular payment made by condo owners to the strata corporation or strata council that manages the condominium complex. These fees are typically used to cover various operating costs and maintenance expenses associated with the common areas and shared amenities within the condominium development.
Condo fees can vary widely depending on several factors, including the size and complexity of the condominium complex, the services and amenities provided, and the location of the condo. Some common expenses covered by condo fees may include:

  1. Maintenance of Common Areas: This includes landscaping, snow removal, cleaning of common hallways, and upkeep of shared facilities like fitness centers or swimming pools.
  2. Utilities: Condo fees may cover utilities such as water, sewage, and garbage collection for common areas.
  3. Insurance: Strata corporations often purchase insurance coverage for common areas and shared structures. Individual condo owners typically need to arrange their own insurance for their units and personal belongings.
  4. Reserve Fund Contributions: A portion of the condo fees is usually allocated to a reserve fund, which is used to cover major repairs and replacements, such as roof repairs or repainting the building.
  5. Management Fees: If the strata council hires a property management company to oversee day-to-day operations, part of the fees may go toward paying for these services.
  6. Administrative Costs: Condo fees may cover administrative expenses related to running the strata corporation, such as bookkeeping and legal fees.

The amount of condo fees can be outlined in the condo’s bylaws and varies from one condominium complex to another. It’s essential for prospective condo buyers in BC to understand the condo fee structure and budget for these ongoing costs when considering the purchase of a condominium. Additionally, condo owners often have a say in the management of the strata corporation, as they typically elect a strata council to make decisions on their behalf, including setting and adjusting condo fees as needed.

Other expenses

Housing expenses in Canada can vary widely depending on factors such as location, type of housing, and individual lifestyle choices. Here are some of the common housing expenses that Canadians typically encounter:

  1. Utilities: This includes electricity, gas, water, and sewage fees. Utility costs can vary depending on the size of the property and the energy efficiency of the home.
  2. Home Insurance: Homeowners need insurance to protect their property and belongings. Condo owners may also have to pay condo fees, which include insurance for common areas.
  3. Maintenance and Repairs: Homeowners are responsible for the ongoing maintenance and repair costs of their properties. This includes everything from routine maintenance like lawn care to unexpected repairs such as a leaking roof.

Closing Costs

Closing costs when buying a property in British Columbia (BC), Canada, typically include various fees and expenses associated with finalizing the real estate transaction. These costs can vary based on factors such as the purchase price, location, and specific circumstances of the sale. In this calculator you can include some common closing costs for buyers such as Property Transfer Tax (PTT), PST on Mortgage Insurance, Appraisal, Home Inspection, Moving Costs, Final Adjustments, and Legal fees.

Property Transfer Tax

Property transfer tax in Canada is a provincial or territorial tax levied when a property changes ownership. This tax is separate from property taxes and is typically paid by the buyer at the time of a real estate transaction. The amount of property transfer tax varies across provinces and territories, and the rules and exemptions can also differ.

In British Columbia (BC), property transfer tax is a tax imposed by the provincial government when ownership of real estate property is transferred. Here’s an overview of the property transfer tax in BC:

  1. Tax Rate: The property transfer tax rate in BC is calculated as a percentage of the property’s purchase price. The current rate is 1% on the first $200,000 of the purchase price, 2% on the portion greater than $200,000 and up to $2 million, and 3% on the portion exceeding $2 million. There is also an additional 2% tax on the portion of the purchase price that exceeds $3 million for residential properties.
  2. Payment Responsibility: In most cases, the buyer is responsible for paying the property transfer tax. It is typically due at the completion of the real estate transaction and is payable to the provincial government.
  3. Exemptions and Rebates: BC offers exemptions and rebates for certain buyers and property types. For instance, first-time homebuyers may be eligible for a full exemption on properties valued up to a certain threshold. There are also exemptions for newly constructed homes and vacant land. Additionally, a partial exemption may apply to homes in certain designated areas.
  4. Filing and Payment: Property transfer tax returns are typically filed by the buyer’s lawyer or notary public on behalf of the buyer. The tax amount is paid to the provincial government when the transaction closes.
  5. Use of Funds: The revenue generated from property transfer tax in BC is used to support various government services and initiatives, such as healthcare, education, and infrastructure projects.
  6. Disclosure: Buyers must accurately disclose information on the property transfer tax return. Misrepresentation or inaccuracies can lead to penalties.

It’s crucial for buyers to budget for property transfer tax when purchasing real estate, as it can be a substantial cost in addition to the purchase price. Buyers should also investigate any available exemptions or rebates that they may qualify for to potentially reduce their tax liability. Additionally, property transfer tax rates and regulations can change, so it’s advisable to consult with a real estate professional or tax authority for the most up-to-date information relevant to your location.

PST on Mortgage Insurance

In Manitoba, Ontario and Quebec, the Provincial Sales Tax (PST) on mortgage insurance is a provincial tax imposed by some provinces on the premiums paid for mortgage insurance. Mortgage insurance is typically required when a homebuyer has a down payment of less than 20% of the purchase price of the home. It protects the lender in case the borrower defaults on the mortgage.


A property appraisal for a mortgage is a thorough assessment of a home’s value conducted by a licensed appraiser. It aims to determine the fair market value of the property based on factors like its size, condition, location, and recent comparable sales in the area. Lenders require appraisals to ensure the property’s value aligns with the requested loan amount, minimizing their risk. If the appraised value meets or exceeds the loan amount, it’s a crucial step toward mortgage approval. However, if the appraisal falls short, the buyer may need to adjust their financing or negotiate with the seller to bridge the gap.

Home Inspection

A home inspection is a comprehensive examination of a property’s condition, typically conducted by a certified home inspector. The purpose is to assess the home’s structural integrity, systems (like plumbing and electrical), and overall safety. It involves a visual inspection and may include testing, like checking for leaks or electrical issues. Home inspections help buyers make informed decisions by identifying potential problems and necessary repairs. The inspector provides a detailed report outlining any issues found, allowing buyers to negotiate repairs with sellers or make an informed choice about the property. Home inspections are a vital step in the home-buying process in Canada.

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