Mortgage · Canada
Mortgage payment calculator.
Calculate your Canadian mortgage payment with accurate semi-annual compounding. Includes CMHC insurance and a full amortization schedule.
A Canadian mortgage payment calculator. 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%.
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.
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?
Because Canadian law requires it. The federal Interest Act obliges lenders to disclose mortgage interest compounded no more than semi-annually, so a Canadian fixed-rate mortgage quoted at 5.5% compounds twice a year rather than twelve times.
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.
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.