Canadian Mortgage Calculator
Calculate your monthly mortgage payments with semi-annual compounding, CMHC insurance, and stress-test validation.
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Enter your property details, down payment, and mortgage preferences to see your estimated monthly payments and amortization schedule.
Pagamento mensile Capitale e interessi
Total monthly carrying cost: $0
Monthly Cost Breakdown
Term Summary (5 Anni)
Potential Savings!
By choosing an accelerated payment schedule, you could save $0 in interest and be mortgage-free 0 years sooner.
Complete Canadian Mortgage Guide
How is a Canadian Mortgage Different?
Semi-Annual Compounding
Unlike US mortgages which often compound monthly, Canadian mortgages typically compound semi-annually (twice a year). This means the 'Effective Annual Rate' (EAR) is slightly lower than if it were compounded monthly, saving you money on interest.
Term vs. Amortization
The 'Amortization' is the total life of your loan (e.g., 25 years). The 'Term' is how long your rate is locked in (e.g., 5 years). You will renew your mortgage multiple times over its life, potentially at different rates.
Understanding Payment Frequencies
Choosing the right payment frequency can help you become mortgage-free faster.
Like making one extra monthly payment per year!
CMHC Insurance Rules
In Canada, if your down payment is less than 20% of the home price, you are required to purchase mortgage default insurance (commonly from CMHC). This protects the lender if you default.
- ✓ Required for down payments between 5% and 19.99%
- ✓ The premium is usually added to your mortgage amount
- ✓ Not available for homes over $1,000,000
- ✓ Max amortization is 25 years for insured mortgages
| Acconto | Premium |
|---|---|
| 5% - 9.99% | 4.00% |
| 10% - 14.99% | 3.10% |
| 15% - 19.99% | 2.80% |
| 20% + | 0.00% |
The Formula
Canadian mortgages use a specific formula for the effective monthly rate due to semi-annual compounding:
Effective Monthly Rate (r)
Monthly Payment (M)
Glossary of Terms
High-Ratio Mortgage
A mortgage where the down payment is less than 20% of the home's value. These require mortgage default insurance.
Conventional Mortgage
A mortgage with a down payment of 20% or more. Mortgage default insurance is typically not required.
Stress Test
Banks must qualify you at a rate higher than your contract rate (usually the benchmark rate of ~5.25% or your rate + 2%) to ensure you can afford payments if rates rise.