Canadian Mortgage Calculator

How the Canadian mortgage calculator works

Canadian mortgages use semi-annual compounding, which differs from the monthly compounding common in U.S. loans. This calculator applies federal down payment minimums, CMHC insurance premiums for high-ratio loans, amortization caps, and multiple payment frequencies including accelerated bi-weekly and weekly options.

For U.S. mortgage math with taxes and insurance, try the mortgage calculator with taxes and insurance. For UK stamp duty and GBP payments, use the mortgage calculator UK. . To compare bi-weekly payoff strategies, open the biweekly mortgage calculator.

Canadian mortgage formulas

Interest is quoted nominally but compounded semi-annually. The equivalent monthly rate is:

Payment per period uses the Canadian equivalent rate for your chosen frequency:

CMHC premiums apply when the down payment is below 20% on homes under $1,000,000. The premium is added to the mortgage balance, increasing both payment and total interest.

Worked example: $500,000 home, 10% down, 5.25% rate

A buyer purchases a $500,000 home with $50,000 down (10%) on a 25-year amortization at 5.25% with monthly payments:

1. CMHC premium (3.1% tier): ($500,000 - $50,000) x 3.1% = $13,950
2. Loan amount: $500,000 - $50,000 + $13,950 = $463,950
3. Monthly payment: $2,764.76
4. Total interest over 25 years: $365,479.01

Down payment and amortization rules (2026)

• Minimum down payment: 5% on the first $500,000, 10% on the portion above $500,000 up to $999,999, and 20% on homes of $1,000,000 or more.
• CMHC insurance: Required when down payment is below 20% on eligible properties under $1,000,000.
• Amortization cap: High-ratio insured mortgages are generally limited to 25-year amortization.

Frequently asked questions