Canadian Mortgage Calculator
Payments with semi-annual compounding per the Interest Act, CMHC insurance, payment frequencies and your balance at renewal.
Your Mortgage
Minimum for this price: $35,000 (5% of the first $500,000, 10% of the portion above, 20% from $1.5M).
Quoted Canadian fixed rates compound semi-annually (Interest Act).
CMHC premium table and insured-mortgage rules verified June 2026.
Results
Payment (monthly)
12 payments per year, semi-annual compounding
Total Mortgage
$540,000 + $16,740 CMHC premium
Total Interest
Over 25.0 years
CMHC Insurance Premium
3.10% of $540,000 at 90.0% LTV — added to the mortgage
Ontario charges 8% sales tax on the insurance premium — $1,339 due in cash at closing (it can't be added to the mortgage).
After your first 5-year term
| Principal paid | $67,942 |
| Interest paid | $116,942 |
| Balance remaining at renewal | $488,798 |
Switching to accelerated biweekly payments (half the monthly payment every two weeks) would save about $55,761 in interest and pay the mortgage off roughly 3.3 years sooner.
Don't forget closing costs: land transfer tax is usually the biggest one — estimate it with our land transfer tax calculator. To check what you can qualify for under the federal stress test, see the mortgage stress test calculator.
Guide & Information
Overview / Aperçu
Canadian financial planning involves understanding interest rates, investment accounts, and tax-advantaged savings. The Mortgage Calculator helps with financial decisions in Canada / Canada.
💡 Tips
- •Bank of Canada sets the overnight rate affecting all lending
- •RRSP contributions reduce current year taxable income
- •TFSA allows tax-free growth and withdrawals
- •Consider mortgage vs investment opportunity costs
Why Use This Calculator / Pourquoi utiliser cette calculatrice
Financial planning is crucial for retirement security, major purchases, and building wealth while taking advantage of Canadian tax-sheltered accounts.
Regulations: Follows Bank of Canada regulations.
- • Loan amount: $100,000
- • Interest rates vary by institution
- • Terms typically range from 12-360 months
Related Calculators
Frequently Asked Questions
How do Canadian interest rates work? / Comment fonctionnent les taux d'intérêt canadiens ?
Canadian financial calculations use Bank of Canada overnight rate as reference. Mortgage rates, loans, and savings accounts are influenced by this benchmark. / Les calculs financiers canadiens utilisent le taux directeur de la Banque du Canada comme référence. Les taux hypothécaires, prêts et comptes d'épargne sont influencés par ce repère.
What about RRSP and TFSA contributions? / Qu'en est-il des cotisations REER et CELI ?
RRSP contributions are tax-deductible with annual limits (18% of income, max $31,560 in 2024). TFSA contributions ($7,000 limit in 2024) grow tax-free. / Les cotisations REER sont déductibles d'impôt avec des limites annuelles (18% du revenu, max 31 560$ en 2024). Les cotisations CELI (limite de 7 000$ en 2024) croissent libres d'impôt.
Frequently asked questions
Why are Canadian mortgage payments different from US calculators?
Section 6 of the federal Interest Act requires fixed-rate mortgage rates to be quoted compounded semi-annually, not monthly. A $100,000 mortgage at 6% over 25 years costs $639.81/month in Canada versus $644.30 with US-style monthly compounding. Generic calculators built for the US market overstate Canadian payments.
How much is CMHC mortgage insurance?
With less than 20% down, default insurance is mandatory and costs 0.60% to 4.00% of the loan depending on loan-to-value: 2.80% at 80.01–85% LTV, 3.10% at 85.01–90%, and 4.00% at 90.01–95%. A 30-year insured amortization adds a 0.20% surcharge. The premium is added to your mortgage, but Ontario (8%), Quebec (9%) and Saskatchewan (6%) charge sales tax on it in cash at closing.
What is the minimum down payment in Canada?
The legal minimum is 5% of the first $500,000 of the purchase price plus 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more cannot be insured, so they require at least 20% down. The insured price cap rose from $1 million to $1.5 million on December 15, 2024.
Who can get a 30-year amortization?
Uninsured borrowers (20%+ down) can often choose 30 years from their lender. Insured borrowers (less than 20% down) are normally capped at 25 years, but since December 15, 2024 first-time buyers — and any buyer of a newly built home — can take an insured 30-year amortization for a 0.20% premium surcharge.
How much do accelerated biweekly payments save?
Accelerated biweekly payments take half your monthly payment and pay it every two weeks — 26 half-payments equal 13 monthly payments per year instead of 12. On a typical 25-year mortgage that one extra payment per year shaves roughly 3–4 years off the amortization and saves tens of thousands of dollars in interest.
What is the difference between term and amortization?
Amortization (usually 25 years) is the total time to pay off the mortgage. The term (usually 5 years) is how long your rate and conditions are locked; at each renewal you renegotiate the rate on the remaining balance. This calculator shows your balance at first renewal for exactly that reason.