Mortgage · Canada
Mortgage Payment Calculator Canada.
Calculate your Canadian mortgage payment with accurate semi-annual compounding. Includes CMHC insurance and a full amortization schedule.
A $500,000 mortgage at 5% over 25 years costs $2,908.02 a month in Canada (see the worked example below). Enter the home price, down payment, interest rate, amortization period and payment frequency, and it returns the payment, the total interest over the life of the loan, and a full amortization schedule.
It follows Canadian rules rather than American ones: interest is compounded semi-annually, not monthly, and CMHC mortgage default insurance is added to the loan balance whenever the down payment is under 20%.
Planning extra payments or a lump sum? Use the mortgage prepayment calculator to see the interest saved and the prepayment charge.
Source: Justice Canada — Interest Act (R.S.C., 1985, c. I-15); CMHC — Mortgage loan insurance cost (premium table) · As of
Cite this page: TNAADO Tools, “Canadian Mortgage Payment Calculator”, https://tools.tnaado.ca/calculators/mortgage/payment/
Inputs
Your payment
Fill the form and press Calculate.
How this mortgage calculator works
Canadian mortgages use semi-annual compounding, so interest is computed twice per year rather than monthly as in the US. This results in a slightly lower effective rate than a comparable US calculator would show.
CMHC insurance
If your down payment is below 20%, mortgage default insurance (commonly called CMHC) is required and is added to the loan balance.
- 5% – 9.99% down: 4.00% premium
- 10% – 14.99% down: 3.10% premium
- 15% – 19.99% down: 2.80% premium
CMHC insurance requires a purchase price below $1,500,000. That cap was raised from $1,000,000 on 15 December 2024.
Payment frequency
Accelerated bi-weekly or weekly payments effectively add one extra monthly payment per year, shortening amortization and reducing total interest.
Worked example: $500,000 at 5% over 25 years
Take a $500,000 mortgage (for instance a $625,000 home with 20% down, so no CMHC premium) at a 5% fixed rate and a 25-year amortization. Under section 6 of the Interest Act convention the rate compounds semi-annually: 5% ÷ 2 = 2.5% every six months, an effective annual rate of 5.0625%, or about 0.4124% per month.
| Schedule | Payment | Payoff | Total interest |
|---|---|---|---|
| Monthly | $2,908.02 | 25 years | $372,407 |
| Bi-weekly | $1,340.68 | 25 years | $371,441 |
| Accelerated bi-weekly | $1,454.01 | about 21.5 years (559 payments) | $311,972 |
- Monthly vs bi-weekly: a regular bi-weekly payment is the monthly payment re-cut into 26 instalments, so it saves only about $966 in interest.
- Accelerated bi-weekly: half the monthly payment every two weeks means 26 half-payments, one extra monthly payment a year. It cuts about $60,400 of interest and roughly 3.5 years off this mortgage.
- Why semi-annual matters: the same 5% compounded monthly, as a US-style calculator would assume, gives $2,922.95 a month, $14.93 more, and $4,478 more interest over 25 years.
These figures come from the same formula the calculator uses: payment = P × i ÷ (1 − (1 + i)−n), where i is the per-payment rate derived from the semi-annual rate and n is the number of payments. Enter $625,000 and $125,000 above to reproduce them. Next steps: check what you can carry with the affordability calculator, model extra payments with the prepayment calculator, or compare a new rate with the refinance calculator.
Minimum down payment in Canada
Per the Financial Consumer Agency of Canada, the minimum down payment is 5% of the first $500,000 of the price plus 10% of the portion from $500,000 up to $1,500,000, and 20% of the whole price at $1,500,000 or more. Anything under 20% down needs mortgage default insurance, and the premium is added to the loan before the payment is calculated.
| Price | Rule | Minimum down |
|---|---|---|
| $400,000 | 5% of $400,000 | $20,000 |
| $600,000 | 5% of $500,000 + 10% of $100,000 | $35,000 |
| $1,500,000 | 20% of the price | $300,000 |
The down-payment box above shows the minimum for the price you enter. To choose a price from your income first, use the affordability calculator; for a dedicated down-payment check, use the down payment calculator.
TNAADO Inc. · Toronto
Canadian mortgages compound twice a year, and it matters
A Canadian fixed-rate mortgage is quoted at a nominal annual rate compounded semi-annually, not monthly. The federal Interest Act is what makes that the convention, because a mortgage with blended payments may not state a rate calculated more often than half-yearly. The effect is an effective rate slightly below the same nominal rate compounded twelve times a year, so a US mortgage calculator applied to a Canadian mortgage overstates the payment: a few dollars a month, and thousands over a 25-year amortization.
The mistake people make. Reading "biweekly" as a saving. Ordinary biweekly payments are the monthly payment reshaped into 26 pieces and save almost nothing. Accelerated biweekly charges half the monthly payment every two weeks, which works out to 13 monthly payments a year instead of 12, and that extra payment goes entirely to principal. It is the accelerated version that removes years from the amortization.
Frequently asked questions
How is a mortgage payment calculated in Canada?
The payment is the fixed amount that fully repays the principal plus interest over the amortization period. The annual rate is first converted to an effective rate per payment period using semi-annual compounding, then applied to the standard annuity formula. If the down payment is below 20%, the CMHC premium is added to the principal before the payment is worked out, so the insurance is financed over the life of the mortgage rather than paid up front.
Why is Canadian mortgage interest compounded semi-annually and not monthly?
It is the Canadian convention, and the law shapes it. Section 6 of the federal Interest Act says no interest is recoverable on a mortgage of real property unless the mortgage states the rate “calculated yearly or half-yearly, not in advance.” Fixed-rate mortgages are therefore quoted with semi-annual compounding, so a 5.5% fixed rate compounds twice a year rather than twelve times. Some lenders compound variable-rate mortgages monthly, so check your mortgage documents.
This makes the effective rate slightly lower than the same nominal rate compounded monthly. A US calculator applied to a Canadian mortgage therefore overstates the payment: a small difference each month, but thousands of dollars over a 25-year amortization.
Is it better to pay a mortgage biweekly or monthly?
Ordinary biweekly payments are simply the monthly payment reshaped to fit 26 periods, so they save very little. Accelerated biweekly is the one that matters: it charges half the monthly payment every two weeks, which works out to 26 half-payments, or the equivalent of 13 monthly payments a year instead of 12.
That single extra payment goes entirely to principal. It typically removes several years from a 25-year amortization and saves tens of thousands in interest, at no cost beyond the slightly higher annual outlay.
How much is CMHC insurance and when do I have to pay it?
Mortgage default insurance is required whenever the down payment is less than 20% of the purchase price. The premium is a percentage of the mortgage amount and rises as the down payment shrinks: 4.00% at 5–9.99% down, 3.10% at 10–14.99%, and 2.80% at 15–19.99%.
It is added to the loan balance and paid off as part of the mortgage. It is not available at all once the purchase price reaches $1,500,000, which is why a purchase at that level requires at least 20% down. The threshold was $1,000,000 until 15 December 2024.
How much down payment do I need for a mortgage in Canada?
The minimum is 5% of the first $500,000 of the price plus 10% of the portion between $500,000 and $1,500,000, and 20% of the price at $1,500,000 or more. For example, a $600,000 home needs at least $35,000 down. With less than 20% down you must pay for mortgage default insurance.
How do I calculate my mortgage payment with a down payment?
Subtract your down payment from the price, add the default insurance premium if you put down less than 20%, then apply the payment formula with the semi-annual rate converted to a per-payment rate. The calculator above does all three steps when you enter the price and down payment.
Sources
- Interest Act, section 6 (Justice Laws Website): mortgage interest calculated yearly or half-yearly, not in advance.
- FCAC: down payment: minimum down payments, 20% at $1.5 million and above, and default insurance.
- CMHC premium information: insurance premiums by loan-to-value.
Disclaimer
Estimates for educational purposes only. Actual payments depend on lender policies, insurance premiums, property taxes, and other factors not included here. Consult a qualified mortgage professional.