Below 20% requires mortgage default insurance.

The contract rate quoted by the lender.

How this calculator works

Canadian mortgages do not compound monthly — by convention they compound semi-annually. That means the periodic rate is not simply the annual rate divided by twelve. This tool converts the annual rate to a semi-annual rate, then to your payment frequency: i = (1 + r/2)^(2/f) - 1, where f is the number of payments per year.

If the down payment is under 20% of the purchase price, mortgage default insurance is mandatory at federally regulated lenders, and the premium is normally added to the mortgage balance. The premium rate is set by loan-to-value band; this tool uses the CMHC homeowner premium schedule, which is a cliff structure — crossing a band boundary applies the higher rate to the whole premium, not just the amount above the threshold.

Accelerated bi-weekly and weekly payments produce one extra monthly payment per year, which shortens the amortization.

Assumptions and limits

This is an educational estimate produced entirely in your browser. It is not an offer of credit, an approval, or financial advice, and it does not use your real credit file. Lenders apply their own policy, pricing, and verification.

Frequently asked questions

Why is the payment different from my bank's calculator?

Small differences usually come from the compounding convention, the payment frequency, and whether insurance was added to the principal. This tool uses semi-annual compounding and includes the insurance premium in the mortgage when the down payment is under 20%.

Is the CMHC premium paid upfront?

It is a one-time charge, but it is normally added to the mortgage balance rather than paid in cash, which means you pay interest on it over the amortization.

What is the minimum down payment in Canada?

For an insured mortgage the minimum is 5% of the portion of the price up to $500,000, plus 10% of any portion above that. Insured mortgages are also limited by the insurable price ceiling.

Do accelerated payments save money?

Yes. Accelerated bi-weekly or weekly payments total one extra monthly payment per year, which reduces the balance faster and shortens the amortization.

Does a co-signer change the payment?

No — the payment is set by the mortgage amount, rate, and amortization. A co-signer affects whether you qualify and possibly the rate you are offered, not the amortization math.

Sources

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