Mortgage Calculator Canada

How to use this Canadian mortgage calculator

Enter the home price and your down payment — the calculator derives the mortgage amount and applies the correct CMHC default-insurance tier automatically if you're under 20% down (4.0% for 5–9.99% down, 3.1% for 10–14.99%, 2.8% for 15–19.99%). Add your rate, amortization, property tax, and home insurance for the full monthly cost. To see what the stress test will qualify you against, enter your rate plus 2% (or 5.25%, if that's higher).

Canadian mortgage math is different

By law, Canadian fixed-rate mortgages compound semi-annually, not monthly like American ones. The monthly rate is:

r = (1 + annual rate ÷ 2)^1/6 − 1

The payment then follows the amortization formula M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]:

• M — monthly mortgage payment (principal + interest)
• P — mortgage amount (price − down payment + CMHC premium)
• r — effective monthly rate (semi-annual compounding)
• n — amortization in months (years × 12)

Semi-annual compounding works slightly in your favour: a 5.00% Canadian rate costs about the same as a 4.96% US-style rate.

What the results tell you

Total interest is the shock number: at 5% over 25 years you repay roughly 75% on top of what you borrowed. The amortization schedule shows how slowly the balance falls in the early years — our guide on how amortization works explains why, and how prepayment privileges (typically 10–20% annually on Canadian mortgages) can bend the schedule in your favour.

What this calculator doesn't include

Land transfer tax (varies by province, with rebates for first-time buyers in Ontario, BC, and PEI), legal fees, title insurance, GST/HST on new builds, and condo fees are not included. Variable rates are not modeled — this tool assumes a fixed rate for the full amortization, while real Canadian mortgages renew every term. The CMHC premium shown is the base tier; provincial tax on the premium applies in Ontario, Quebec, and Saskatchewan.