Canadian Mortgage Calculator

This calculator estimates the monthly payment on a Canadian mortgage, along with the property tax, insurance, condo fees, and other costs of owning the home. It follows Canadian convention by compounding a fixed rate semi-annually, as the Interest Act requires, so the payment matches what a Canadian lender would quote. Enter the home price, down payment, amortization, and rate to see the payment, a cost breakdown, and a year-by-year schedule.

Amortization vs term: two different clocks

Canadian mortgages run on two timelines that are easy to mix up. The amortization is the total time to pay the loan off, most commonly 25 years, though 30 years is available on uninsured mortgages. The term is the length of the current contract, usually far shorter, and the five-year term is the most common. At the end of each term the mortgage comes up for renewal, and you either sign a new term with your lender or move to another one. The rate you agree to is locked only for the term, not the whole amortization. A longer amortization lowers the monthly payment but raises the total interest, because the balance is paid down more slowly.

Why the interest compounds semi-annually

By law, a fixed-rate Canadian mortgage states its interest compounded semi-annually, not monthly. That is why a 5% Canadian mortgage carries a slightly lower effective monthly cost than a 5% U.S. mortgage, which compounds monthly. This calculator applies the semi-annual convention, so a rate you enter behaves the way a Canadian lender's does. Variable-rate mortgages, tied to a lender's prime rate, are the exception and usually compound monthly. If you want the U.S. treatment for comparison, our Mortgage Calculator compounds monthly.

Down payment and mortgage default insurance

The minimum down payment in Canada is tiered by price. You need at least 5% on the first $500,000 of the purchase price and 10% on the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more require 20% down. Any down payment below 20% makes the mortgage high-ratio, which by law must carry mortgage default insurance from CMHC, Sagen, or Canada Guaranty. That premium protects the lender, not you, and it is normally added to the loan. Premiums rise as the down payment shrinks, running roughly 2.8% of the loan at 15 to 19.99% down, about 3.1% at 10 to 14.99%, and around 4.0% at 5 to 9.99% down. Insured, high-ratio mortgages are capped at a 25-year amortization; putting 20% or more down lets you stretch to 30 years.

The mortgage stress test

Since 2018, most Canadian borrowers must pass a mortgage stress test. To qualify, the lender checks that you could still afford the payment at the greater of 5.25% or your contract rate plus two percentage points, even when your actual rate is lower. The point is to leave room for rates to rise before your next renewal. Because the rate you qualify at is usually higher than the rate you pay, the amount you can borrow is smaller than the payment alone would suggest. The Debt-to-Income Ratio Calculator can help you gauge where you stand before you apply.

Fixed or variable, open or closed

Two choices shape the contract. A fixed rate holds steady for the whole term, giving a predictable payment; a variable rate moves with the lender's prime rate, which can lower or raise your cost over time. Separately, a mortgage is open or closed. An open mortgage lets you repay any amount at any time without penalty, useful if you expect to sell or pay it off soon, but it carries a higher rate. A closed mortgage limits prepayment and charges a penalty to break early, in exchange for a lower rate, which is why most borrowers choose it.

Choosing a payment frequency

Canadian lenders offer several payment schedules, and the choice affects how fast the loan clears. Monthly means 12 payments a year. Biweekly means 26 payments of half the monthly amount. Accelerated biweekly is the one that saves money: you pay half the monthly amount every two weeks, which works out to the equivalent of 13 monthly payments a year instead of 12. That one extra payment goes straight to principal and can shave years off the amortization. This calculator shows the standard monthly figure; switching to accelerated payments with your lender speeds up the payoff.

Prepayment, portability, and renewal

Even a closed mortgage usually comes with prepayment privileges. A common allowance lets you pay a lump sum of 10% to 20% of the original balance each year and raise your regular payment by a similar share, both without penalty. Most closed mortgages are also portable: if you move before the term ends, you can carry the existing rate and terms to the new property, and borrow more at a blended rate if the new home costs more. At renewal you can renegotiate the rate and features, switch lenders, or change the amortization. Some mortgages are readvanceable, pairing the loan with a home equity line of credit that grows as you pay down principal.

Choosing a longer or shorter amortization

The amortization you choose is a trade between the monthly payment and the total interest. A 25-year amortization keeps the payment manageable but stretches interest across a quarter century. Trimming to 20 or 15 years raises each payment yet cuts the total interest sharply, because the principal clears faster and less balance sits accruing interest. If a shorter amortization strains the budget, a middle path is to keep the longer term for safety and use prepayment privileges or accelerated payments to pay ahead in the years you can afford it. Run a few amortization lengths in this calculator and compare the total interest before you commit.

How this calculator works

Enter the home price and your down payment as a percentage; the tool computes the loan amount, applies the semi-annual rate, and returns the monthly principal and interest. Turn on the optional costs to fold in property tax, home insurance, any mortgage default insurance premium, condo or HOA fees, and other costs, and the total monthly figure updates as you type. The cost-breakdown chart splits the lifetime total into principal, interest, and each recurring cost, while the balance chart shows the principal falling across the amortization. The summary lists the loan amount, the total of all payments, the total interest, and the payoff date, so you see the full cost of the loan rather than the monthly figure alone.

The other costs of buying

The mortgage payment is only part of the cost. Property tax is set by your municipality and is often collected with the payment. Home insurance is required by lenders. If you buy a condo, monthly condo or strata fees cover shared insurance, maintenance, landscaping, water, and garbage for the building, and they can add hundreds of dollars a month. On closing, most provinces charge a land transfer tax, and cities such as Toronto add a second municipal one, though many first-time buyers qualify for a rebate. Turn on the optional costs in the calculator to see the true monthly figure, and use the amortization schedule to watch the balance fall year by year.

The down payment tiers, and where insurance stops

The minimum down payment in Canada is set in slices. It is 5% on the first $500,000 of the price, 10% on the portion between $500,000 and $1.5 million, and 20% at $1.5 million and above, where default insurance is not available at all. On an $800,000 home the minimum is $25,000 plus $30,000, so $55,000 rather than the $40,000 a flat 5% would suggest.

Insured amortization normally stops at 25 years. First-time buyers and purchasers of newly built homes can go to 30 years, a change that took effect in December 2024 alongside the higher $1.5 million insured price cap.

What the insurance premium costs

The premium is a percentage of the mortgage, set by the loan-to-value ratio, and it is usually added to the principal rather than paid at closing.

A borrowed or gifted down payment at 90.01% to 95% carries 4.50% instead of 4.00%. Sales tax on the premium applies in Ontario, Quebec and Saskatchewan, and that portion cannot be added to the loan, so it has to be paid at closing.

The tiers reward crossing a boundary rather than saving steadily. Moving from 19% down to 20% removes the premium entirely, and moving from 9% to 10% cuts it from 3.10% to 2.80% of the loan. Check where your deposit falls against the table before deciding a few thousand dollars more will not matter.