Mortgage Calculator
Calculate Your Monthly Payments and Understand Your Costs
See exactly what homeownership will cost you in St. John's.
Enter percentage (5-50%) or dollar amount
Current NL average rate: 5.0-6.0%
Understanding Your Mortgage Calculation
This calculator shows principal and interest only. Your actual monthly payment may include:
- Property taxes (approximately $100-200/month depending on location)
- Home insurance (approximately $70-125/month)
- HOA/condo fees (if applicable)
- Utilities (heat, electricity, water)
Total Housing Cost: Plan for 30-35% of gross income for all housing expenses.
NL Land Transfer Tax Explained
When you purchase a home in Newfoundland & Labrador, you pay a land transfer tax (also called deed transfer tax). This is a one-time fee due at closing:
- First $100,000: 1%
- $100,001 to $150,000: 1.5%
- $150,001 to $200,000: 2%
- Over $200,000: 2.5%
Example: On a $350,000 home:
$100,000 × 1% = $1,000
$50,000 × 1.5% = $750
$50,000 × 2% = $1,000
$150,000 × 2.5% = $3,750
Total: $6,500
CMHC Mortgage Insurance
If you put down less than 20%, Canada Mortgage and Housing Corporation (CMHC) insurance is required. This protects the lender if you default.
- 5% down: 4.00%
- 10% down: 3.10%
- 15% down: 2.80%
- 20% down: No insurance needed
Cost Example: $300,000 home with 10% down = $30,000 down, $270,000 mortgage. Insurance = $270,000 × 3.10% = $8,370. This is added to your mortgage and paid over the life of the loan.
How Much Home Can You Afford?
Mortgage lenders use debt ratios to determine how much you can borrow. Generally:
Your monthly housing costs should not exceed 32-39% of gross monthly income.
Example: $80,000/year = $6,667/month gross
Maximum housing cost = $6,667 × 35% = $2,333/month
At 5.5% interest, 25-year amortization, this supports approximately a $340,000 mortgage (or $425,000 home with 20% down).
All debts (housing + car loans, credit cards, student loans) should not exceed 40-44% of gross monthly income.
If you have $500/month in other debts, subtract that from available housing budget.
Interest Rates in NL: Current Environment
As of 2026, mortgage rates in Canada have stabilized around 5.0-6.0%, depending on term length and lender:
- 5-Year Fixed: 5.0-5.5% (most popular, secure rate)
- Variable Rate: 4.5-5.2% (lower now but can increase)
- 3-Year Fixed: 4.8-5.3% (shorter commitment, lower rate)
- 7-Year Fixed: 5.2-5.8% (longer commitment, higher rate)
Tip: Fixed rates lock you in at one rate for the entire term. Variable rates fluctuate with the prime rate. Fixed rates are safer if rates are rising.
Closing Costs You'll Pay in Addition to Down Payment
- Home Inspection: $400-600
- Lawyer Fees: $1,500-2,500
- Land Transfer Tax: See calculator above
- Title Insurance: $300-500 (recommended)
- Property Tax Adjustment: $0-2,000 (split with seller)
- Utility Setup: $0-200
Total Closing Costs: Plan for $3,000-7,000 depending on home price and extras.
Let's Get You Pre-Approved Today
This calculator is a starting point. To get serious about buying, connect with a mortgage lender for pre-approval. They'll verify your income, credit, and debts to determine your actual borrowing power. Royal LePage Turner Realty can recommend trusted lenders in St. John's.
Contact Us for Lender Recommendations