Calculate your monthly payment, bi-weekly payments, CMHC mortgage default insurance, total interest, and full amortization schedule — built specifically for Canadian homebuyers.
This calculator uses standard Canadian mortgage math to estimate your payment. In Canada, mortgages are compounded semi-annually by law — not monthly as in the US. This calculator applies the correct Canadian compounding formula so your estimates are accurate for Canadian mortgages.
The difference becomes your mortgage principal. If your down payment is under 20%, CMHC mortgage default insurance applies.
Use your lender's quoted rate. Most Canadians choose a 25-year amortization — the maximum allowed with CMHC insurance.
Monthly, bi-weekly, or accelerated bi-weekly. Accelerated bi-weekly can shave years off your mortgage and save thousands in interest.
See your payment, total interest, CMHC premium (if applicable), property tax estimate, and the full amortization table year-by-year.
Canadian mortgages are fundamentally different from US mortgages in two key ways. First, Canadian mortgages are compounded semi-annually rather than monthly, which slightly lowers the effective rate. Second, Canadian mortgages are issued in terms (typically 5 years) that are shorter than the full amortization period (up to 25–30 years) — meaning you renegotiate your rate at the end of each term.
In Canada, there are no 30-year fixed mortgages the way Americans have. Instead, you lock in a rate for your term, then renew. This is why understanding the difference between mortgage renewal and refinancing is so important for Canadian homeowners.
The minimum down payment required in Canada depends on the purchase price:
| Purchase Price | Minimum Down Payment | CMHC Required? |
|---|---|---|
| Under $500,000 | 5% of purchase price | Yes |
| $500,000 – $999,999 | 5% on first $500K + 10% on remainder | Yes |
| $1,000,000 – $1,499,999 | 20% of full purchase price | No |
| $1,500,000+ | 20% minimum | No |
As of December 2024, the federal government raised the insured mortgage cap from $1,000,000 to $1,499,999, allowing buyers of higher-priced homes to access mortgage default insurance with less than 20% down.
If your down payment is less than 20%, you're required to purchase mortgage default insurance through one of three approved providers: CMHC (Canada Mortgage and Housing Corporation), Sagen (formerly Genworth), or Canada Guaranty. The premium is added to your mortgage and depends on your loan-to-value ratio:
| Loan-to-Value Ratio | CMHC Premium |
|---|---|
| Up to 65% (35%+ down) | 0.60% |
| 65.01% – 75% (25–35% down) | 1.70% |
| 75.01% – 80% (20–25% down) | 2.40% |
| 80.01% – 85% (15–20% down) | 2.80% |
| 85.01% – 90% (10–15% down) | 3.10% |
| 90.01% – 95% (5–10% down) | 4.00% |
Learn more in our full guide: CMHC Mortgage Default Insurance Explained.
These two terms confuse many first-time buyers. The amortization period is the total length of time it takes to pay off your entire mortgage — typically 25 years in Canada (up to 30 years for insured mortgages under recent rule changes). The mortgage term is the length of your current contract with your lender, usually 5 years. At the end of each term, you renew your mortgage — potentially at a different rate. See our guide: Mortgage Renewal vs. Refinance in Canada.
Monthly — 12 payments per year. The most common option. Bi-weekly — 26 payments per year (half your monthly payment every two weeks). Accelerated bi-weekly — also 26 payments, but each payment equals half of the monthly amount rounded up, effectively making one extra payment per year. Accelerated bi-weekly payments can reduce a 25-year amortization by 2–4 years and save tens of thousands in interest.
What is the maximum amortization period in Canada?
As of August 2024, first-time homebuyers and buyers of new builds can access 30-year amortizations on insured mortgages. For most existing home purchases with less than 20% down, the maximum is 25 years. With 20% or more down (conventional mortgage), there is no government-mandated maximum, but most lenders cap at 30 years.
Is mortgage default insurance the same as PMI?
Not exactly. In Canada, mortgage default insurance (provided by CMHC, Sagen, or Canada Guaranty) protects the lender if you default. In the US, this is called Private Mortgage Insurance (PMI). The key difference: in Canada, the premium is added directly to your mortgage balance, whereas in the US it's typically a monthly fee that can be removed once you reach 20% equity.
How does the stress test affect my mortgage?
Canadian lenders must qualify you at the higher of your contracted rate plus 2%, or 5.25%. This means if you're offered a 5-year fixed rate of 5.0%, you must prove you can afford payments at 7.0%. The stress test reduces how much you can borrow and is designed to ensure borrowers can handle rate increases at renewal.
What's a typical mortgage rate in Canada right now?
Mortgage rates change frequently. As of early 2025, 5-year fixed rates have ranged from approximately 4.5% to 5.5% depending on lender and borrower profile. Variable rates track the Bank of Canada prime rate. Always get quotes from multiple lenders or work with a mortgage broker who can shop the market for you.
Can I make extra payments on a Canadian mortgage?
Most Canadian mortgages allow prepayment privileges, typically 10–20% of the original mortgage amount per year as a lump sum, plus the ability to increase regular payments by a set percentage. Exceeding these limits may trigger prepayment penalties. Review your mortgage contract carefully or consult your broker.
What closing costs should I budget for in Alberta?
Alberta buyers should budget 1.5–4% of the purchase price in closing costs, including legal fees ($1,500–$2,500), title insurance (~$300), home inspection ($400–$600), property tax adjustment, and land title transfer fees. Unlike some other provinces, Alberta does not have a provincial land transfer tax. See our full guide: Alberta Mortgage Closing Costs.
Explore our free educational resources for Canadian homebuyers and homeowners: