Find your mortgage payment the Canadian way: semi-annual compounding, CMHC insurance on small down payments, and every payment frequency including accelerated bi-weekly.
How Canadian mortgage payments are calculated
Canadian fixed-rate mortgages are compounded semi-annually, not monthly as in the U.S. That makes the effective monthly rate a little lower than the posted rate divided by 12. This calculator converts your rate correctly, then spreads the loan over your amortization period.
Down payment and CMHC insurance
| Down payment | Mortgage insurance premium |
|---|---|
| 5% to 9.99% | 4.00% of the loan |
| 10% to 14.99% | 3.10% |
| 15% to 19.99% | 2.80% |
| 20% or more | None |
The minimum down payment is 5% of the first $500,000 and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more need at least 20% down and cannot be insured. The premium is added to your mortgage balance; in Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is paid in cash at closing.
Accelerated payments save interest
An accelerated bi-weekly payment is half of the monthly payment, paid 26 times a year. Because that adds up to one extra monthly payment each year, it can shave around three years off a 25-year mortgage and save thousands in interest. Compare frequencies in the calculator.
25 or 30 years?
Insured mortgages can be amortized over up to 30 years for first-time buyers and buyers of newly built homes. A longer amortization lowers your payment but increases total interest significantly.
FAQ
What rate should I enter?
Use the rate your lender quoted. Five-year fixed rates are the most common term in Canada.
How much can I borrow?
Use the mortgage affordability calculator, which applies the federal stress test.
What other closing costs should I budget?
Land transfer tax (see our land transfer tax calculator), legal fees, inspection and adjustments, usually 1.5% to 4% of the price.