How this calculator works
Borrowing equals the home price less down payment plus any financed default-insurance premium you enter. Canadian fixed-rate compounding is the default. Dated extras, a lump sum and annual payment increases can shorten repayment. Property tax, insurance and other carrying costs are held constant and spread evenly over payment periods. Optional US-style PMI uses a quoted rate on the original mortgage and stops at the entered modelled LTV. This is a scenario, not a statutory cancellation decision.
Formula
Principal = price - down payment + financed premium. i = (1 + nominal rate / c)^(c/f) - 1. Regular P&I = P × i / (1 - (1 + i)^(-Nf/12)). Periodic carrying costs = (annual tax + annual home insurance + 12 × monthly fees) / f. Budget payment = actual mortgage payment + carrying costs + modelled PMI.
Worked example
For a $100,000 home with $20,000 down, no premium and a 120-month loan at 0%, monthly P&I is $666.67. Annual tax of $1,200, insurance of $600 and $50 monthly fees add $200, giving $866.67 before any extras.
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Frequently asked questions
Is the Canadian insurance premium automatic?
No. Enter the premium quoted by the lender if it is financed. Provincial sales tax on a premium generally needs separate cash.
Do tax and insurance stop at mortgage payoff?
No. The lifetime figure here totals costs only during the modelled mortgage period. Ownership expenses continue afterwards.
Does the PMI stopping LTV guarantee cancellation?
No. The optional model uses a simple threshold. US loan type, payment history, valuation and servicing rules can change cancellation eligibility.