Canadian mortgage calculator

By law, Canadian fixed-rate mortgages compound semi-annually, not monthly like U.S. loans. We convert your annual rate to an effective per-payment rate using that semi-annual basis, then apply the standard amortization formula: payment = mortgage × periodic rate ÷ (1 − (1 + periodic rate)^{−number of payments}). The semi-annual rule makes the effective rate slightly lower than monthly compounding at the same posted rate.

The federal minimum is 5% on the first $500,000 of the price, 10% on the portion between $500,000 and $1.5 million, and 20% on homes priced at $1.5 million or more (which can't be insured). For example, a $650,000 home needs at least $25,000 + $15,000 = $40,000 down. The calculator flags when your down payment is below the minimum.

If your down payment is under 20%, your mortgage must be insured (by CMHC, Sagen or Canada Guaranty). The premium is added to your mortgage and ranges by loan-to-value: 2.80% at 15–19.99% down, 3.10% at 10–14.99% down, and 4.00% at 5–9.99% down. On a $585,000 insured loan at 3.10%, that's about $18,135 added to the balance. At 20% down or more, there is no premium.

Federally regulated lenders must confirm you could still afford the payments at a higher qualifying rate — the greater of your contract rate plus 2% or 5.25%. So at a 5% contract rate, you're tested at 7%. The calculator shows the qualifying payment so you can see the income cushion lenders expect, even though your actual payment is lower.

Yes. An accelerated bi-weekly payment is simply your monthly payment cut in half and paid every two weeks. Because there are 26 bi-weekly periods, you make the equivalent of 13 monthly payments a year instead of 12. That one extra payment goes straight to principal, typically shaving several years and tens of thousands of dollars of interest off a 25-year mortgage. Switch the payment frequency to compare.

It depends on the rate, amortization and how fast you pay. On a $560,000 mortgage at 5% over 25 years (monthly), you'd pay roughly $400,000+ in interest — often most of a payment in the early years goes to interest, not principal. Shortening the amortization, prepaying, or choosing accelerated payments all cut total interest. The principal-vs-interest bar shows the split for your scenario.

A longer amortization lowers your payment but raises total interest because the balance shrinks more slowly; a shorter one does the opposite. Insured mortgages (under 20% down) are generally capped at 25 years, though since December 2024 first-time buyers and buyers of newly built homes can get 30 years. With 20%+ down, 30-year amortizations are widely available. Try both to see the trade-off.

No — this calculator focuses on the mortgage principal and interest plus CMHC insurance. Lenders also consider property taxes, heating and half of any condo fees when assessing affordability (your GDS/TDS ratios), so budget those separately. Treat the payment here as the core mortgage cost, not your full monthly housing cost.

A lot, because every prepaid dollar skips all the future interest it would have accrued. Use the extra per payment field to add to principal on every payment, the yearly lump sum field for an annual prepayment (say from a bonus or tax refund), or set your own payment to test a fixed amount. The verdict updates to show your new payoff time and the interest saved. Most Canadian mortgages allow prepayments of 10–20% of the original balance per year without penalty — check your lender's privilege limits.

There is no single trick — the fastest payoff stacks several levers: switch to accelerated bi-weekly payments (a free extra payment a year), top up each payment with a fixed amount, drop a yearly lump sum from bonuses or refunds, and choose the shortest amortization you can comfortably afford. Prepayments matter most in the early years, when the balance — and the interest charged on it — is largest. Try each option in "More options" above to see the combined effect on your payoff date and total interest.

Usually yes, within limits. Most Canadian mortgages include prepayment privileges that let you pay an extra 10–20% of the original principal each year and increase your regular payment by a similar percentage, all penalty-free. Going beyond those limits — or paying out a closed mortgage entirely before renewal — can trigger a prepayment charge (often the greater of three months' interest or an interest-rate differential). Open mortgages can be repaid in full anytime without penalty but carry higher rates. Always confirm your specific allowances in your mortgage agreement.

No. It's an educational estimate using the semi-annual compounding convention, posted CMHC premium tiers and the federal stress-test rule. Your actual rate, premium, qualifying rules and amortization options depend on the lender, your credit and the property. Confirm the numbers with a mortgage broker or lender before making decisions.