Canada Mortgage Calculator
Calculate Canadian mortgage payments with semi-annual compounding and CMHC default insurance.
About the Canada Mortgage Calculator
Canadian fixed-rate mortgages compound semi-annually, not monthly, so the effective monthly rate is (1 + r/2)^(1/6) − 1. With less than 20% down, default insurance (CMHC, Sagen or Canada Guaranty) is required and added to the loan; 30-year amortization (allowed for first-time buyers and new builds) adds 0.20%.
Minimum down payment: 5% of the first $500,000 and 10% of the rest up to $1.5 million; 20% above that.
The formula
Monthly rate = (1 + r/2)^(1/6) − 1
Default insurance premiums
| Loan-to-value | Premium |
|---|---|
| up to 65% | 0.60% |
| 65.01–75% | 1.70% |
| 75.01–80% | 2.40% |
| 80.01–85% | 2.80% |
| 85.01–90% | 3.10% |
| 90.01–95% | 4.00% |
Worked example
Example: Monthly payment = $3,644.02
- Inputs: Purchase price: $720,000; Down payment: 11%; Interest rate: 5%; Amortization: 28 years; Payments: Monthly.
- Formula: Monthly rate = (1 + r/2)^(1/6) − 1
- Result: Monthly payment = $3,644.02
- Loan with insurance: $661,946
- Monthly equivalent: $3,644.02
Things to keep in mind
- Provincial sales tax on the premium (Ontario, Quebec, Saskatchewan) is paid upfront and not included.
Questions people ask
What is accelerated biweekly?
Half the monthly payment every two weeks: 26 payments a year, paying the mortgage off faster.
What's the stress test?
You must qualify at the higher of your rate + 2% or 5.25%.