Builder Rate Buy-Down Calculator
Analyze temporary rate buy-downs (e.g., 3-2-1 or 2-1) offered by Canadian builders. Calculate your initial savings and understand the payment shock when standard rates resume.
Mortgage Details
Buy-Down Structure
Standard Monthly Payment
At % rate
Total Buy-Down Savings
Paid by builder
Payment Schedule
| Period | Rate | Monthly Payment | Monthly Savings |
|---|---|---|---|
|
Standard
|
+/mo jump
|
- |
Canadian Qualification Rules
Even though your payments are lower during the buy-down period, Canadian lenders (and the OSFI Stress Test) require you to qualify based on the Standard Rate (or the stress test rate, whichever is higher). This tool assumes Canadian semi-annual mortgage compounding.
