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# B.C. Mortgage Calculator

Use this free calculator to estimate your monthly mortgage payments in British Columbia.

Nerdy Tip: Using the Compare function of our B.C. mortgage calculator can give you a better idea of what mortgage costs might await you. For example, you can study the impact different mortgage rates or amortization lengths have on your monthly mortgage payment.

NerdWallet's B.C. Mortgage Calculator

### Mortgage Summary

#### Estimated Payment

##### The following items show your expected payment schedule over the full amortization period.

Doughnut chart

\$2,763

Monthly Payment

Principal & Interest
\$2,762.62
Mortgage Insurance
\$0
##### Mortgage details
Home Price
\$500,000
Down Payment
\$25,000 (5%)
Total Loan Cost
\$828,787.10
Loan Amount
\$475,000
Total Interest Cost
\$353,787.10
Interest Rate
5%
Mortgage Term
5 Years
Amortization Period
25 Years
Payment Frequency
Monthly
No. of Payments
300

### Amortization Schedule

Balance remaining in undefined

#### Payments Breakdown

##### Balance
2024\$33,151.48\$9,866.97\$23,284.52\$465,133.03
2025\$33,151.48\$10,366.48\$22,785.00\$454,766.55
2026\$33,151.48\$10,891.29\$22,260.20\$443,875.26
2027\$33,151.48\$11,442.66\$21,708.83\$432,432.60
2028\$33,151.48\$12,021.94\$21,129.54\$420,410.66

Term Total

\$165,757.42\$54,589.34\$111,168.08\$420,410.66

The line above displays the totals at the end of your mortgage term. At this time, you will renew your mortgage and choose among the rates that are available. The following analysis assumes you will lock in the same rate for the remainder of the amortization period, which may not be possible.

2029\$33,151.48\$12,630.55\$20,520.93\$407,780.11
2030\$33,151.48\$13,269.98\$19,881.51\$394,510.13
2031\$33,151.48\$13,941.77\$19,209.72\$380,568.36
2032\$33,151.48\$14,647.57\$18,503.91\$365,920.79
2033\$33,151.48\$15,389.10\$17,762.38\$350,531.69
2034\$33,151.48\$16,168.18\$16,983.31\$334,363.51
2035\$33,151.48\$16,986.69\$16,164.79\$317,376.82
2036\$33,151.48\$17,846.64\$15,304.84\$299,530.18
2037\$33,151.48\$18,750.13\$14,401.36\$280,780.05
2038\$33,151.48\$19,699.35\$13,452.13\$261,080.70
2039\$33,151.48\$20,696.63\$12,454.85\$240,384.06
2040\$33,151.48\$21,744.40\$11,407.08\$218,639.66
2041\$33,151.48\$22,845.21\$10,306.27\$195,794.45
2042\$33,151.48\$24,001.75\$9,149.73\$171,792.70
2043\$33,151.48\$25,216.84\$7,934.65\$146,575.86
2044\$33,151.48\$26,493.44\$6,658.04\$120,082.42
2045\$33,151.48\$27,834.67\$5,316.81\$92,247.75
2046\$33,151.48\$29,243.80\$3,907.68\$63,003.95
2047\$33,151.48\$30,724.27\$2,427.22\$32,279.68
2048\$33,151.48\$32,279.68\$871.80\$0.00

Even if you’re not ready to purchase a home tomorrow, a mortgage payment calculator is a powerful learning tool that can help you:

• Compare how different interest rates affect mortgage costs.
• Understand the positive impact of saving a larger down payment
• Choose an amortization period and payment frequency that best aligns with your budget and home ownership goals.
• Decide which mortgage term you’d be most comfortable with.
• Get a sense of how much house you can afford before viewing properties or applying for a mortgage.

Canada Mortgage Payment Calculator | Alberta Mortgage Payment Calculator

## Average home prices in B.C.

The average residential home price in B.C. remained above \$1 million in April. The average price of \$1 million was 1.4% higher since April 2023, according to the British Columbia Real Estate Association. Average April prices in major B.C. markets included:

• Greater Vancouver: \$1,307,549.
• Vancouver Island: \$734,569.
• Fraser Valley: \$1,049,298.
• Victoria: \$983,904.

## Costs included in a mortgage payment

• Principal. The principal is the amount of money you borrow. If you purchase a home for \$700,000 and borrow \$600,000 from a lender to do so, that \$600,000 is your principal. The difference between the home’s purchase price and your mortgage principal — \$100,000 in this example — is your down payment.
• Interest. Interest is the amount a lender charges a borrower for providing a loan. Mortgage interest can be the biggest contributor to the cost of a mortgage.
• Mortgage insurance. This typically refers to “mortgage default insurance” and is sometimes called “CMHC insurance.” It’s an additional cost homeowners pay if they purchase a home with a down payment under 20%.
• B.C. property taxes. In some cases, borrowers wrap property tax payments into their monthly mortgage payment.

## Mortgage payment terminology you’ll need to know

Your mortgage term is how long the contract with your current mortgage lender lasts. Most Canadians opt for five-year terms, but terms between one and ten years are also common. Once your term expires, you’ll have to renew your mortgage, possibly at a different interest rate or with a different lender.

Amortization is the projected time you’ll need to pay off your mortgage. Under Canada’s current lending guidelines, borrowers with down payments of less than 20% can’t choose amortization periods longer than 25 years.

### Variable mortgage rates vs. fixed mortgage rates

With a variable-rate mortgage, your interest rate can change if your lender’s prime rate changes. If you choose a variable-rate mortgage with fixed payments, the monthly payment stays the same even if interest rates increase or decrease, but the amount going toward the principal adjusts. If rates rise, for example, more of the payment will go toward covering interest, and you’ll pay down the principal more slowly.

With a fixed-rate mortgage, the principal and interest portion of your monthly payments will remain the same for the duration of your mortgage term, regardless of what happens with your lender’s prime rate.

### Payment frequency

The more frequently you make your mortgage payments, the faster you’ll pay off your mortgage. Mortgage payment frequencies typically include:

• Monthly (12 payments per year).
• Semi-monthly (two payments per month; 24 payments per year).
• Bi-weekly (one payment every 14 days; 26 payments per year).
• Weekly (one payment every 7 days; 52 payments per year).

## Ways to reduce your monthly B.C. mortgage payment

### Shop for a lower interest rate

If you are renewing your mortgage, you may have the option to negotiate a lower interest rate. Any reduction can help; a mortgage with a 4.5% interest rate might not appear much better than a 4.65% rate, for example, but shaving even a few percentage points off can save you thousands of dollars over the course of your mortgage.

### Make a larger down payment

A larger down payment reduces the amount you need to finance with a mortgage. Borrowing less may mean smaller monthly mortgage payments or the ability to choose a shorter amortization period. A smaller loan means paying less in interest overall, and making a larger down payment can also help you secure a lower interest rate from your lender.

### Choose a longer amortization period

Spreading your mortgage out over a longer amortization period results in smaller monthly payments, though the total amount you’ll pay in interest will be higher.

### Refinance

Refinancing your home loan can also help you reduce your monthly mortgage payment, especially if the rate you can get today is lower than when you started your mortgage.

If you’ve owned your home for a while, have stayed on top of your mortgage payments and have good credit overall, you’ll put yourself in the best position for the lowest rates.

When you refinance, you essentially begin a new mortgage. That gives you an opportunity to negotiate a lower interest rate and a new payment schedule, both of which can help lower your monthly obligations.

There can be costs to refinancing before your current mortgage is up, however. Review your current agreement to see what limitations you might face — those costs can sometimes outweigh any savings a lower rate would bring.

Getting a mortgage in B.C. isn’t too different from getting a mortgage in any other province. Specific mortgage products and rates may differ somewhat, but the overall process should be the same.

But there are a few unique factors home buyers in the province should be aware of, including:

• Property transfer tax rebates. The B.C. First-Time Home Buyers’ Program allows qualified first-time buyers in the province to receive a property transfer tax exemption worth up to \$8,000, depending on the price of the home being purchased.
• The B.C. Home Owner Grant. This grant allows homeowners an annual reduction in property taxes of up to \$770.
• The Newly Built Homes Exception. If you buy a newly constructed home in B.C., you may receive an exemption from the property transfer tax worth up to \$13,000.
• Land transfer tax. B.C.’s land transfer tax can add thousands to your home purchase.

How much is the monthly payment on a \$700,000 mortgage?

Your monthly mortgage payment will depend heavily on your amortization period and the interest rate offered by your lender. Consider a \$700,000 mortgage:

• With an interest rate of 4% and an amortization period of 25 years, the monthly payment would be about \$3,682. Shorten the amortization period to 20 years and the monthly payment would be \$4,229.
• With an interest rate of 6% and the same 25-year amortization period, that loan would cost almost \$4,480 monthly. Repay over 20 years, and the monthly payment would be \$4,985.
How much house can I afford with my salary?

Lenders don’t just look at your salary in isolation — instead, they consider how much stress a mortgage payment could be. For example, a person with monthly student loan payments could very well be approved for a lower maximum loan amount than an otherwise identical applicant without a monthly debt payment.

More specifically, lenders look at two salary-based ratios:

• Gross debt service (GDS) ratio = The percent of your pre-tax household income going towards housing costs, which include mortgage payments, utilities and property taxes. Your GDS ratio should not exceed 39% of your pre-tax household income.
• Total debt service (TDS) ratio = Your GDS plus any other debts. Your TDS ratio should not be more than 44% of your pre-tax household income.

#### The Best Mortgage Rates In B.C.

Compare B.C. mortgage rates from Canada’s top lenders and brokers in minutes. Easily find the best mortgage rate for your needs.

#### B.C. First-Time Home Buyer Guide

To succeed in British Columbia’s competitive housing market, first-time buyers should get their finances in order and explore grants and assistance programs that can improve affordability.

#### How to Choose a Mortgage Lender

Before buying a home, shop around to compare rates from potential mortgage lenders, such as banks, credit unions and mortgage investment corporations.

#### Should Your First House Be a Condo?

Buying a condo may be a way to enter the market sooner — for less money — while enjoying an enhanced lifestyle, but consider extra fees and future plans before deciding.