Mortgage Calculator (Canada)
Estimate your mortgage payment with Canadian semi-annual compounding, the minimum down payment, CMHC default insurance and accelerated bi-weekly or weekly payments.
How Canadian mortgages are calculated
Fixed-rate mortgages in Canada are compounded semi-annually, not in advance, as required by the Interest Act. That makes the effective rate slightly lower than a US-style monthly-compounded loan at the same posted rate. This calculator converts the rate to the exact periodic rate for each payment frequency.
Minimum down payment
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% |
| $500,000 to $1,499,999 | 5% of the first $500,000 + 10% of the rest |
| $1.5 million or more | 20% |
CMHC mortgage default insurance
With less than 20% down, the mortgage must be insured. The premium is added to the loan:
| Down payment | Premium |
|---|---|
| 5% to 9.99% | 4.00% |
| 10% to 14.99% | 3.10% |
| 15% to 19.99% | 2.80% |
| 20% or more | Not required |
A 30-year amortization on an insured mortgage (available to first-time buyers and buyers of new builds) adds 0.20% to the premium, which the calculator includes. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is paid at closing and is not added to the loan.
Accelerated payments save thousands
An accelerated bi-weekly payment is half of the monthly payment, paid every two weeks. Because there are 26 payments a year, you make the equivalent of one extra monthly payment each year. On a $600,000 mortgage over 25 years, that can cut about 3 years and tens of thousands of dollars in interest. Choose “Accelerated bi-weekly” to compare.
The stress test
To qualify, federally regulated lenders test whether you could afford payments at the higher of 5.25% or your contract rate plus 2%. Use the calculator at that rate to check your qualifying payment. This tool gives estimates only; your lender’s figures will prevail.
Related tools: Loan calculator, Compound interest calculator, Salary calculator, Square footage calculator.
FAQ
How much is the payment on a $500,000 mortgage?
At 4.29% over 25 years with monthly payments, a $500,000 mortgage costs about $2,700 a month. Enter your own rate and amortization for an exact estimate.
Is CMHC insurance mandatory?
Yes, when your down payment is under 20% of the purchase price. Insured mortgages are only available for homes under $1.5 million.
What is the difference between bi-weekly and accelerated bi-weekly?
Regular bi-weekly spreads 12 monthly payments over 26 payments. Accelerated bi-weekly pays half the monthly amount 26 times, adding one extra monthly payment per year.
Why is my Canadian mortgage payment lower than a US calculator shows?
Canadian fixed-rate mortgages compound semi-annually, which produces a slightly lower effective rate than monthly compounding.