Canadian mortgage calculator
Mortgage payments in Canada, with semi-annual compounding, CMHC insurance and accelerated payments.
About this calculator
This Canadian mortgage calculator works out your payment the Canadian way, with interest compounded twice a year as the Interest Act requires for fixed-rate mortgages.
It checks the minimum down payment, adds the CMHC insurance premium when you put down less than 20%, and shows how much accelerated bi-weekly or weekly payments save.
How it works
The yearly rate is compounded twice a year, so the monthly rate is (1 + rate ÷ 2)^(1/6) − 1. With less than 20% down, the CMHC premium, from 2.80% to 4.00% of the loan, is added to the mortgage. Accelerated payments are half or a quarter of the monthly payment, paid every two weeks or every week.
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Worked example
- Home price: $600,000
- Down payment: 10%
- Mortgage rate: 4.5% a year
- Amortization: 25 yr
- Payment frequency: Monthly
Payment: $3,081.41 (Monthly)
Common questions
Why are Canadian mortgage payments calculated differently?
Canadian fixed-rate mortgages compound interest twice a year, because the Interest Act requires the rate to be stated yearly or half-yearly. US mortgages compound monthly, so the same quoted rate costs slightly more there.
What is the minimum down payment in Canada?
5% of the first $500,000, plus 10% of any part of the price between $500,000 and $1.5 million. Homes of $1.5 million or more need 20% down.
How much do accelerated bi-weekly payments save?
Paying half the monthly amount every two weeks adds the equivalent of one extra monthly payment a year. On a 25-year mortgage, that often cuts three years or more.
Sources and further reading
The story behind it
Where the idea came from: Canada's Interest Act requires a mortgage with blended payments to state its rate calculated yearly or half-yearly, not in advance.
That is why Canadian lenders quote fixed rates compounded semi-annually. At the same quoted rate, a Canadian mortgage costs a little less than a US one, which compounds monthly.
Why you can trust this calculator
- It runs in your browser. Nothing you type into it is sent anywhere.
- The method is explained on this page, so you can check it yourself.
- Free to use, with no sign-up.
- Results are estimates, not financial advice.
- Spotted a mistake? Tell us and we'll look into it.
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