Canadian Mortgage Calculator
Adjust the inputs below. Results update as you type.
How it works
Canadian mortgages compound semi-annually by law, unlike U.S. monthly compounding. Effective monthly rate = (1 + annual rate/2)^(1/6) − 1. CMHC mortgage insurance is required when down payment is 5–20% of purchase price (0.6–4% premium added to principal). Maximum amortization for insured mortgages is 25 years.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
Canadian mortgages compound semi-annually by law, so the effective monthly rate is (1 + annual/2)^(1/6) − 1 before applying the amortization formula.
Worked example
A $400,000 mortgage at 5% over 25 years, with Canadian semi-annual compounding, costs about $2,326/month — slightly less than US monthly-compounding math would suggest.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
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Frequently asked questions
How is Canadian mortgage interest different?+
Fixed-rate Canadian mortgages compound semi-annually rather than monthly, which slightly lowers the effective rate compared with US-style monthly compounding.
What is the term vs. amortization?+
The amortization is the full payoff period (e.g., 25 years); the term is the contract length (often 5 years) after which you renew at new rates.
Is mortgage insurance required?+
With less than 20% down, mortgage default insurance (e.g., CMHC) is mandatory in Canada, adding a premium to the loan.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.