Calculate your monthly mortgage payment, total interest cost, CMHC insurance, and full amortization schedule — using Canada's unique semi-annual compounding rules.
Choose what you want to calculate
Total purchase price of the property
Minimum required: 5% on first $500k, 10% above
10.0% of purchase price
Posted rates compound semi-annually in Canada (CRA/CMHC standard)
Total time to pay off the mortgage — max 25 years if down payment is under 20%
More frequent payments reduce total interest paid
Additional amount applied directly to principal each payment
Combined income of all applicants on the mortgage
Car loans, credit cards, student loans, etc.
How much cash you have for the down payment
Stress test uses the higher of this rate +2%, or 5.25%
Used in your debt service ratio calculations
Standard estimate used by lenders is around $100–150/month
CMHC Mortgage InsuranceRequired if down payment < 20%
Premium ranges 2.8%–4.0% of mortgage amount based on loan-to-value ratio. Added to your mortgage principal.
🍁 This calculator uses Canada's semi-annual compounding rule, required by federal law for all fixed-rate mortgages, unlike the monthly compounding used in the US.
Monthly Mortgage Payment
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🏠 Mortgage Principal--
🛡️ CMHC Insurance Premium--
💰 Total Loan Amount--
📉 Total Interest Over Amortization--
📅 Payoff Date--
Principal vs Total Interest (Lifetime)
Principal --Interest --
Payment Amount
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Monthly
Total Interest Paid
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Over full amortization
Interest Saved
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vs. standard monthly
⚠️ CMHC Required
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Down payment under 20%
📊 Detailed Mortgage Breakdown
Home Purchase Price
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Down Payment
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Base Mortgage Principal
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CMHC Insurance Premium
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Total Mortgage Amount
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Interest Rate (Annual, Semi-Annual Compounding)
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Amortization Period
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Total Cost of Mortgage
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🏠 Affordability Assessment
Gross Debt Service (GDS) Ratio
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Total Debt Service (TDS) Ratio
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Stress Test Qualifying Rate
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Maximum Monthly Payment
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Maximum Mortgage Amount
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Maximum Home Price You Can Afford
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🗓️ Yearly Amortization Schedule
Year
Principal Paid
Interest Paid
Remaining Balance
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How Canadian Mortgage Payments Are Calculated
Canadian mortgages are calculated differently than in the United States. By federal law, fixed-rate mortgages must use semi-annual compounding, meaning the posted annual interest rate is compounded twice per year regardless of how often you actually make payments. This results in a slightly lower effective rate per payment period compared to monthly compounding.
📋 Minimum Down Payment Rules (2024)
Purchase Price
Minimum Down Payment
Up to $500,000
5% of purchase price
$500,000 – $1,500,000
5% on first $500k + 10% on the remainder
Over $1,500,000
20% (CMHC insurance not available)
🛡️ CMHC Insurance Premium Rates
Loan-to-Value Ratio
Premium (% of Loan)
Up to 65%
0.60%
65.01% – 75%
1.70%
75.01% – 80%
2.40%
80.01% – 85%
2.80%
85.01% – 90%
3.10%
90.01% – 95%
4.00%
🔑 Key Mortgage Terms
Amortization Period: The total time to pay off your mortgage completely — typically 25 or 30 years. Mortgages with less than 20% down are capped at a 25-year amortization.
Mortgage Term: The length of your current rate agreement, usually 1–5 years, after which you renew at prevailing rates.
Stress Test: Federally regulated lenders must qualify you at the higher of your contract rate +2%, or 5.25%, to ensure you can handle rate increases.
GDS/TDS Ratios: Gross Debt Service (housing costs ÷ income) should not exceed 39%, and Total Debt Service (all debts ÷ income) should not exceed 44%.
1. Home Price: $650,000
2. Down Payment: $65,000 (10%)
3. Base Mortgage: $585,000
4. CMHC Premium (2.8% LTV bracket): ~$16,380
5. Total Mortgage: ~$601,380
6. Monthly Payment at 5.25% over 25 years: ~$3,602
7. Total Interest Paid Over 25 Years: ~$478,200
Switching to accelerated bi-weekly payments effectively adds one extra monthly payment per year, shortening amortization and saving substantial interest.
⚠️ Important Notes
— CMHC insurance is mandatory for any purchase with less than 20% down and a price under $1.5 million.
— The mortgage stress test applies to both insured and uninsured (conventional) mortgages.
— Property transfer tax, legal fees, and home inspection costs are separate from your mortgage and not included here.
— For official rate information, visit CMHC at cmhc-schl.gc.ca.
Frequently Asked Questions
Canadian mortgages use semi-annual compounding by federal law, meaning the posted annual rate compounds twice per year. The effective periodic rate is then derived from this compounded rate and applied to your chosen payment frequency — monthly, bi-weekly, or weekly. This differs from the US, where mortgages typically compound monthly.
CMHC (mortgage default) insurance protects the lender if you default on your mortgage. It's mandatory any time your down payment is less than 20% of the purchase price (for homes under $1.5 million). The premium ranges from 0.60% to 4.00% of the loan amount depending on your loan-to-value ratio, and is usually added directly to your mortgage principal rather than paid upfront.
For homes up to $500,000, the minimum is 5%. For the portion of the price between $500,000 and $1.5 million, it's 10%. For homes priced over $1.5 million, you need at least 20% down, and CMHC insurance is not available at that price point.
Amortization is the total time it will take to pay off your mortgage in full — usually 25 or 30 years. Term is the length of your current interest rate contract with the lender, typically 1 to 5 years. At the end of each term, you renew your mortgage, often at a different rate, while the remaining amortization continues.
Federally regulated lenders must qualify you using the higher of your contract rate + 2% or the benchmark rate (5.25%). This ensures you could still afford payments if rates rise. It applies to both insured (less than 20% down) and uninsured (20%+ down) mortgages.
Extra prepayments are applied directly to your principal, which reduces the amount interest is calculated on for every future payment. Even a modest extra $100–200/month can save tens of thousands of dollars in interest and cut years off your amortization. Check your mortgage contract for prepayment limits, as most lenders cap penalty-free prepayments at 10–20% of the original principal per year.
⚠️ Disclaimer: This calculator provides estimates for informational purposes only, based on standard Canadian mortgage rules including semi-annual compounding and CMHC premium tables. Actual rates, fees, and approval amounts depend on your lender, credit profile, and current market conditions. This is not mortgage pre-approval. Consult a licensed mortgage broker or your financial institution for a personalized quote.