Calculate your mortgage payment in Canada, including CMHC insurance if you put less than 20% down. Compare monthly, bi-weekly and accelerated payments, see your balance at the end of your term, and check the payment you need to qualify under the stress test.
Estimates for a fixed-rate mortgage with semi-annual compounding, as required by Canada’s Interest Act. CMHC premiums are those published for insured mortgages and may differ slightly between insurers. Provincial sales tax on the premium (QC, ON, SK) is payable at closing and not included.
| Year | Paid | Principal | Interest | Balance |
|---|
How mortgage payments are calculated in Canada
Canadian fixed-rate mortgages are compounded semi-annually, not monthly. The quoted rate is converted into a rate per payment, then the standard amortization formula gives your payment:
Rate per payment = (1 + annual rate ÷ 2)2 ÷ payments per year − 1
Payment = P × i ÷ (1 − (1 + i)−n) · P = mortgage amount · i = rate per payment · n = total payments
This is why a Canadian calculator gives a slightly lower payment than an American one at the same rate.
Example: $600,000 home with 10% down
Down payment $60,000 → mortgage $540,000 → CMHC premium 3.10% = $16,740, added to the loan → $556,740 mortgage.
At 4.39% over 25 years: $3,047.45 a month. After a 5-year term you have paid $114,010.29 in interest and still owe $487,903.22 at renewal. Over the full 25 years, total interest is $357,495.38.
With 20% down ($120,000), there is no CMHC premium: the mortgage is $480,000 and the payment drops to $2,627.40 a month, with $308,218.88 of interest over 25 years.
Minimum down payment in Canada
- 5% of the first $500,000 of the price
- 10% of the portion between $500,000 and $1,499,999
- 20% if the home costs $1.5 million or more (no mortgage insurance available)
| Home price | Minimum down payment | As % of price |
|---|---|---|
| $400,000 | $20,000 | 5.00% |
| $600,000 | $35,000 | 5.83% |
| $800,000 | $55,000 | 6.88% |
| $1,200,000 | $95,000 | 7.92% |
| $1,600,000 | $320,000 | 20.00% |
CMHC mortgage insurance premiums
If you put less than 20% down, your mortgage must be insured. The premium is a percentage of the mortgage amount and is usually added to the loan.
| Down payment | Premium | On a $500,000 home |
|---|---|---|
| 5% – 9.99% | 4.00% | $19,000 (5% down) |
| 10% – 14.99% | 3.10% | $13,950 (10% down) |
| 15% – 19.99% | 2.80% | $11,900 (15% down) |
| 20% or more | None | $0 |
A 30-year insured amortization (first-time buyers and new builds) adds about 0.20% to the premium.
Payment frequency: accelerated payments save the most
Same $400,000 mortgage at 4.5% over 25 years:
| Frequency | Payment | Paid off in | Total interest |
|---|---|---|---|
| Monthly | $2,213.89 | 25 years | $264,167.55 |
| Bi-weekly | $1,020.78 | 25 years | $263,504.46 |
| Weekly | $510.17 | 25 years | $263,220.54 |
| Accelerated bi-weekly | $1,106.95 | 21 yr 8 mo | $224,105.00 |
| Accelerated weekly | $553.47 | 21 yr 8 mo | $223,655.41 |
Accelerated bi-weekly takes your monthly payment, splits it in two and pays it 26 times a year. That adds the equivalent of one extra monthly payment per year, saving about $40,000 in interest and more than 3 years here.
How your rate changes your payment
$400,000 mortgage, 25-year amortization, monthly payments:
| Rate | Monthly payment | Total interest |
|---|---|---|
| 3.50% | $1,997.08 | $199,124.40 |
| 4.00% | $2,104.08 | $231,224.25 |
| 4.50% | $2,213.89 | $264,167.55 |
| 5.00% | $2,326.42 | $297,925.98 |
| 5.50% | $2,441.57 | $332,469.78 |
Each half-point adds roughly $110 a month and $33,000 of interest on this loan.
Amortization: 20, 25 or 30 years?
$500,000 at 4.5%, monthly payments:
| Amortization | Monthly payment | Total interest |
|---|---|---|
| 20 years | $3,152.03 | $256,486.19 |
| 25 years | $2,767.36 | $330,209.43 |
| 30 years | $2,521.08 | $407,588.00 |
Going from 25 to 30 years saves about $246 a month but costs about $77,000 more in interest.
Term vs amortization
The amortization is the total time to pay off the mortgage (often 25 years). The term is how long your current rate and contract last (often 5 years). At the end of each term you renew, usually at a new rate, on the remaining balance. The calculator shows that balance so you can plan for renewal.
The mortgage stress test
To get a mortgage from a federally regulated lender, you must qualify at the higher of your contract rate + 2% or 5.25%. In the $600,000 example at 4.39%, the qualifying rate is 6.39%, so lenders check that you can afford a payment of about $3,692.13 a month, not $3,047.45.
Frequently asked questions
How are mortgage payments calculated in Canada?
Fixed-rate mortgages in Canada are compounded semi-annually. The annual rate is converted to a rate per payment with (1 + rate ÷ 2)^(2 ÷ payments per year) − 1, then the amortization formula gives a fixed payment over the amortization period.
What is the monthly payment on a $500,000 mortgage?
At 4.5% over 25 years, about $2,767.36 a month. Over 30 years, about $2,521.08. Over 20 years, about $3,152.03.
What is the minimum down payment in Canada?
5% of the first $500,000, plus 10% of the portion between $500,000 and $1,499,999. Homes of $1.5 million or more need at least 20% down.
How much is CMHC insurance?
4.00% of the mortgage with 5% to 9.99% down, 3.10% with 10% to 14.99%, and 2.80% with 15% to 19.99%. With 20% or more down, no insurance is required. A 30-year insured amortization adds about 0.20%.
Who can get a 30-year mortgage amortization?
For insured mortgages (less than 20% down), first-time home buyers and buyers of newly built homes can amortize over 30 years. With 20% or more down, many lenders offer 30 years to any qualified borrower.
Is accelerated bi-weekly worth it?
Yes, if the payment fits your budget. It adds the equivalent of one extra monthly payment per year, which can cut a 25-year mortgage by about 3 years and save tens of thousands in interest.
What is the mortgage stress test rate?
You must qualify at the higher of your contract rate plus 2% or 5.25%. It does not change your actual payment, only how much you can borrow.
Why is a Canadian mortgage calculator different from a US one?
Canadian fixed-rate mortgages compound semi-annually by law, while US mortgages compound monthly. At the same quoted rate, the Canadian payment is slightly lower.
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Disclaimer: This calculator provides estimates for information only and is not financial advice. Rates, insurance premiums and lending rules change; confirm your numbers with a licensed mortgage professional. Official information: CMHC and the Financial Consumer Agency of Canada.