Canadian Mortgage Calculator 2025
Our calculator uses the official Canadian formula with semi-annual compounding. Enter your data to get your exact monthly payment.
Frequently Asked Questions
How is a mortgage payment calculated in Canada?▾
Under Canada's Interest Act, mortgage rates must be compounded semi-annually. The effective monthly rate is calculated from the nominal annual rate: r = (1 + rate/2)^(1/6) - 1. The standard annuity formula is then applied: M = P × r(1+r)^n / [(1+r)^n - 1].
What is CMHC insurance and when is it required?▾
Canada Mortgage and Housing Corporation (CMHC) mortgage insurance is mandatory when your down payment is less than 20% of the purchase price. The premium ranges from 2.80% to 4.00% of the mortgage amount depending on the loan-to-value ratio.
What is the difference between amortization and mortgage term?▾
Amortization is the total time to repay the loan (typically 25 years in Canada). The term is the period for which your rate is locked in (often 5 years). At the end of the term, you renegotiate your rate for a new term.
Are bi-weekly payments really beneficial?▾
Yes. Making 26 payments of half the monthly amount per year (instead of 12 monthly) is equivalent to one extra monthly payment per year. This can reduce your amortization by 2–3 years and save thousands in interest.
Does this calculator account for the Canadian mortgage stress test?▾
This calculator shows your actual payment at the contract rate. For the stress test, lenders qualify you at the higher of the qualifying rate (5.25%) or your contract rate + 2%. Consult your lender for full qualification details.