How to use the Canadian mortgage calculator
- Enter the purchase price in Canadian dollars.
- Enter your down payment. The minimum is 5% of the first $500,000 and 10% of the part above it, or 20% if the price is $1.5 million or more.
- Enter the fixed interest rate and choose the amortization, the years it takes to pay the mortgage off.
- Choose a payment frequency and your mortgage term, the years before you renew.
- Tick the box if you're a first-time buyer or buying a newly built home; it allows a 30-year amortization with less than 20% down.
- Read the payment, the CMHC premium, the balance at renewal and the frequency comparison.
How Canadian mortgage payments are calculated
Under the federal Interest Act, fixed-rate mortgages in Canada state interest compounded semi-annually, not monthly. The calculator converts the quoted rate to a rate for each payment period first:
Regular bi-weekly and weekly payments spread the same amortization over 26 or 52 payments a year. Accelerated payments are the monthly payment divided by 2 (bi-weekly) or 4 (weekly). Because there are 26 bi-weekly or 52 weekly payments a year, you end up paying the equivalent of one extra monthly payment every year, which shortens the amortization.
CMHC insurance premiums
With less than 20% down, your mortgage must be insured against default, and the premium is added to the loan.
| Loan-to-value | Down payment | Premium on the loan |
|---|---|---|
| 80.01% to 85% | 15% to 19.99% | 2.80% |
| 85.01% to 90% | 10% to 14.99% | 3.10% |
| 90.01% to 95% | 5% to 9.99% | 4.00% |
| 30-year amortization | +0.20% |
These are the rates published by CMHC for 2026. Since December 15, 2024, the Department of Finance allows insured mortgages to be amortized over 30 years for first-time buyers and buyers of newly built homes, and has raised the price cap for insured mortgages from $1 million to $1.5 million. Everyone else with less than 20% down is limited to 25 years. Some provinces charge sales tax on the premium, which you pay in cash at closing.
Worked example
The defaults are a $600,000 home with $60,000 down, a 4.5% fixed rate, a 25-year amortization and monthly payments:
- Minimum down payment: 5% × 500,000 + 10% × 100,000 = $35,000, so $60,000 is enough
- Loan: $540,000, an LTV of 90%, so the CMHC premium is 3.10% = $16,740
- Mortgage: 540,000 + 16,740 = $556,740
- Monthly rate: 1.0225^(1/6) − 1 = 0.37153%
- Monthly payment: 556,740 × 0.0037153 ÷ (1 − 1.0037153^−300) = $3,081.41
- Total interest over 25 years: $367,681.60
- Balance at the end of a 5-year term: $488,797.61
The effective annual rate is 1.0225² − 1 = 4.5506%, a little above the quoted 4.5% but below the 4.594% that monthly compounding would give.
Payment frequencies compared
For the same $556,740 mortgage at 4.5% over 25 years:
| Frequency | Payment | Paid off in | Total interest |
|---|---|---|---|
| Monthly | $3,081.41 | 25 years | $367,682 |
| Bi-weekly | $1,420.77 | 25 years | $366,759 |
| Accelerated bi-weekly | $1,540.70 | 21 years 8 months | $311,921 |
| Weekly | $710.08 | 25 years | $366,364 |
| Accelerated weekly | $770.35 | 21 years 8 months | $311,295 |
Regular bi-weekly and weekly payments barely change the cost. Accelerated payments save about $56,000 and more than three years, because they add the equivalent of one monthly payment a year. A 30-year amortization lowers the monthly payment to $2,812.62 (with the premium at 3.30%), but you pay interest for five more years.
Frequently asked questions
Why do Canadian mortgages compound semi-annually?
The Interest Act requires a mortgage to state its interest rate compounded yearly or semi-annually, and lenders quote fixed rates compounded semi-annually. Variable-rate mortgages are often compounded monthly instead, so check your mortgage documents.
What is the difference between the term and the amortization?
The amortization is the total time to pay off the mortgage, such as 25 years. The term is how long your current rate and conditions last, often 5 years. At the end of each term you renew, usually at a new rate, on the balance still owing.
Can I avoid CMHC insurance?
Yes, by putting down at least 20% of the price, which makes it a conventional mortgage with no premium to pay. On the example home, a 20% down payment of $120,000 avoids the $16,740 premium and brings the monthly payment down to $2,656.67.
Who can get a 30-year amortization?
With 20% or more down, many lenders offer 30 years to anyone who qualifies. With less than 20% down, 30 years is only available to first-time buyers and buyers of newly built homes, and the CMHC premium rises by 0.20 percentage points.
Related calculators
- Mortgage Calculator — Your full monthly housing cost, including property tax, insurance, PMI and HOA fees.
- UK Mortgage Calculator — Monthly mortgage payments in pounds, repayment or interest-only, with Stamp Duty for England and Northern Ireland.
- Mortgage Payoff Calculator — See how extra payments, a lump sum or biweekly payments cut years and interest off your mortgage.
- Down Payment Calculator — Your down payment, loan, LTV and cash to close for a home price, or how long it will take to save the down payment.
Results are estimates for educational purposes and are not financial, tax or legal advice. See our disclaimer.