Canadian Mortgage Payment Calculator
Estimates your monthly payment using correct Canadian semi-annual compounding. Includes CMHC insurance, 30-year amortization eligibility, PST on premium, and your OSFI stress-test qualifying rate.
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Mortgage Calculator
Open this section ↓Estimate only, not a mortgage offer. Rules and rates change; always confirm with a licensed mortgage broker or lender.
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How Canadian mortgages are calculated
Canadian fixed-rate mortgages compound semi-annually by law.Open this section ↓Unlike US mortgages (monthly compounding), Canadian fixed-rate mortgages compound semi-annually by law. The effective monthly rate is:
i = (1 + j ÷ 2)1/6 − 1where j is your annual nominal rate. This means a 5% Canadian rate is actually slightly cheaper than a 5% US rate.
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CMHC Insurance
Required when down payment is under 20% and purchase price is under $1,500,000.Open this section ↓Required when down payment is under 20% and purchase price is under $1,500,000. Premium is added to your mortgage.
LTV Premium ≤ 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% +0.20% surcharge for 30-yr amortization.
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Minimum Down Payment
Open this section ↓- • Price ≤ $500,000 → 5%
- • $500k–$1,499,999 → 5% of first $500k + 10% of the rest
- • ≥ $1,500,000 → 20% (no CMHC available)
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Stress Test (OSFI B-20)
Since 2018, all federally regulated lenders must qualify you at max(rate + 2%, 5.25%).Open this section ↓Since 2018, all federally regulated lenders must qualify you at max(rate + 2%, 5.25%). Reaffirmed by OSFI January 2026. Credit unions may differ.
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What will it cost every month?
This is your mortgage payment alone.Open this section ↓This is your mortgage payment alone. The Home Ownership Cost Calculator adds property tax, electricity, heating, water, insurance, and condo fees for the real monthly total.
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About Canadian Mortgage Calculations
Canada Mortgage and Housing Corporation (CMHC) insures high-ratio mortgages (under 20% down) on homes under $1.5M.Open this section ↓↑ Close this sectionSemi-Annual Compounding
The Interest Act (R.S.C. 1985, c. I-15) requires that Canadian fixed-rate mortgages disclose rates as semi-annually compounded. This differs from US mortgages, which compound monthly. For the same stated rate, Canadian mortgages result in a slightly lower effective annual cost.
CMHC Mortgage Insurance
Canada Mortgage and Housing Corporation (CMHC) insures high-ratio mortgages (under 20% down) on homes under $1.5M. The one-time premium is added to your mortgage balance, but the provincial sales tax on that premium must be paid in cash at closing: it cannot be rolled in. Ontario charges 8% PST, Quebec 9% QST, and Saskatchewan 6% PST.
30-Year Amortization (2024 Rule Change)
Effective December 15, 2024, the federal government extended 30-year insured amortization to first-time buyers purchasing any property, and to all buyers purchasing a newly built home. Previously, insured mortgages were capped at 25 years. A +0.20% CMHC premium surcharge applies. Buyers with 20%+ down were never restricted to 25 years.
The Mortgage Stress Test
OSFI Guideline B-20 requires federally regulated lenders to qualify borrowers using the greater of the contract rate plus 2% or 5.25%. This floor was maintained through the 2022–2024 rate cycle. Credit unions and private lenders may not be federally regulated and may apply different rules. As of January 2026, OSFI reaffirmed the stress test remains in effect.
Want to know how much you can afford first?
The Home Affordability Calculator uses your income and debts to find your maximum purchase price, including the GDS/TDS stress test, full amortization schedule, and prepayment savings.