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Mortgage Payment Calculator for Canada
Estimate your mortgage payment the way Canadian lenders actually calculate it, with semi-annual compounding, CMHC insurance, and accelerated bi-weekly payment options built in.
Your Mortgage Details
Estimated Payment
$3,320.84
per month · Monthly
- Loan amount
- $600,000
- CMHC insurance premium
- Not required
- Total mortgage
- $600,000
- Time to pay off
- 25 years
- Total interest
- $396,251
- Total cost of mortgage
- $996,251
▸Year-by-Year Amortization Schedule
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $13,371 | $26,479 | $586,629 |
| 2 | $13,979 | $25,871 | $572,650 |
| 3 | $14,615 | $25,235 | $558,035 |
| 4 | $15,280 | $24,570 | $542,754 |
| 5 | $15,976 | $23,874 | $526,778 |
| 6 | $16,703 | $23,147 | $510,076 |
| 7 | $17,463 | $22,387 | $492,613 |
| 8 | $18,258 | $21,592 | $474,355 |
| 9 | $19,088 | $20,762 | $455,267 |
| 10 | $19,957 | $19,893 | $435,310 |
| 11 | $20,865 | $18,985 | $414,444 |
| 12 | $21,815 | $18,035 | $392,630 |
| 13 | $22,807 | $17,043 | $369,822 |
| 14 | $23,845 | $16,005 | $345,977 |
| 15 | $24,930 | $14,920 | $321,046 |
| 16 | $26,065 | $13,785 | $294,982 |
| 17 | $27,251 | $12,599 | $267,731 |
| 18 | $28,491 | $11,359 | $239,239 |
| 19 | $29,788 | $10,062 | $209,452 |
| 20 | $31,143 | $8,707 | $178,309 |
| 21 | $32,560 | $7,290 | $145,748 |
| 22 | $34,042 | $5,808 | $111,706 |
| 23 | $35,591 | $4,259 | $76,115 |
| 24 | $37,211 | $2,639 | $38,904 |
| 25 | $38,904 | $946 | $0 |
Estimates are for information only and do not constitute financial advice or a mortgage approval. Actual payments, insurance premiums, and qualification depend on your lender, credit profile, and closing costs. Provincial sales tax on mortgage insurance premiums is not included.
How Mortgage Payments Are Calculated in Canada
Most online mortgage calculators quietly use the American formula, which compounds interest monthly. Canadian fixed-rate mortgages are different: by law, they compound semi-annually, not in advance. That difference sounds small, but on a $600,000 mortgage it can change your payment by real money every month, and change your total interest by thousands over the life of the loan.
This calculator uses the exact semi-annual compounding method Canadian banks and mortgage lenders use, so the payment you see here should line up closely with the quote you get from a lender. It also handles the two other things generic calculators usually miss: CMHC mortgage default insurance (required when your down payment is under 20%) and accelerated payment frequencies, which are one of the simplest ways for Canadian homeowners to save interest.
Down Payment Rules & CMHC Insurance
In Canada, your minimum down payment depends on the purchase price: 5% of the first $500,000, 10% of the portion between $500,000 and $1.5 million, and a full 20% for homes at $1.5 million or more. If you put down less than 20%, your mortgage must be insured, and the premium is added to your mortgage balance.
| Down Payment | Insurance Premium | On a $600,000 Mortgage |
|---|---|---|
| 5% to 9.99% | 4.00% of the loan | $24,000 |
| 10% to 14.99% | 3.10% of the loan | $18,600 |
| 15% to 19.99% | 2.80% of the loan | $16,800 |
| 20% or more | Not required | $0 |
Monthly vs. Accelerated Bi-Weekly Payments
Switching from monthly to accelerated bi-weekly payments is the closest thing to a free lunch in Canadian mortgages. You pay half of your monthly payment every two weeks, and because there are 26 two-week periods in a year, you sneak in the equivalent of one extra monthly payment annually without really feeling it.
On a typical $600,000 mortgage at today's rates, that one extra payment per year can pay your mortgage off roughly three years early and save tens of thousands of dollars in interest. Select Accelerated Bi-Weekly in the calculator above to see your exact savings.
Don't Forget the Stress Test
The payment you can afford and the payment you can qualify for are two different numbers. Canadian lenders must qualify you at the higher of your contract rate plus 2% or 5.25%. A quick way to sanity-check your budget: re-run the calculator with 2% added to your rate. If that payment still fits comfortably, you are in good shape to qualify.
Mortgage Calculator FAQ
How are mortgage payments calculated in Canada?
Canadian fixed-rate mortgages are compounded semi-annually, not monthly. That means a 5% advertised rate works out to a slightly lower effective monthly rate than a U.S.-style monthly-compounded loan. Your payment is calculated from the mortgage principal, the effective periodic interest rate, and the number of payments in your amortization period. This calculator uses the exact semi-annual compounding formula Canadian lenders use.
What is the minimum down payment in Canada?
The minimum down payment is 5% of the first $500,000 of the purchase price, plus 10% of any portion between $500,000 and $1,500,000. Homes priced at $1,500,000 or more require at least 20% down. For example, a $750,000 home requires a minimum down payment of $50,000 ($25,000 + $25,000).
What is CMHC mortgage default insurance and how much does it cost?
If your down payment is less than 20%, Canadian lenders require mortgage default insurance (from CMHC, Sagen, or Canada Guaranty). The premium ranges from 2.8% to 4% of your mortgage amount depending on your down payment size, and it is usually added to the mortgage itself rather than paid up front. Ontario also charges provincial sales tax on the premium, which must be paid at closing.
Should I choose monthly or accelerated bi-weekly mortgage payments?
Accelerated bi-weekly payments are half of your monthly payment, paid every two weeks. Because there are 26 bi-weekly periods in a year, you end up making the equivalent of 13 monthly payments instead of 12. That one extra payment per year goes straight to your principal, which can shave years off your amortization and save you tens of thousands of dollars in interest. Use the payment frequency selector above to see exactly how much you would save.
What is the difference between mortgage term and amortization?
Amortization is the total time it takes to pay off your mortgage completely, commonly 25 or 30 years in Canada. The term is the length of your current contract with your lender, usually 1 to 5 years. When your term ends, you renew at current market rates. This calculator estimates payments over your full amortization period.
What is the mortgage stress test in Canada?
To qualify for a mortgage in Canada, you must prove you could afford payments at the higher of your contract rate plus 2% or the minimum qualifying rate of 5.25%. This means the payment a lender approves you for is based on a higher rate than the one you actually pay. A good rule of thumb: calculate your payment at your rate plus 2% to see roughly what you need to qualify for.
How much mortgage can I afford?
Canadian lenders generally cap your housing costs (mortgage payment, property taxes, heat, and half of condo fees) at about 39% of your gross income, and your total debt payments at about 44%. Your real budget also depends on your down payment, credit score, and the stress test. For a personalized answer, talk to the Fattal Realty Team and we will walk you through the full numbers before you start shopping.
Numbers Are Just the Start
Ready to Turn These Numbers Into a Home?
A calculator tells you the payment. The Fattal Realty Team helps you with everything else: what you qualify for, which neighbourhoods fit your budget, and how to negotiate the best price. Start with a free, no-pressure conversation.