Canadian Mortgage Calculator – Estimate Payments
Calculate Canadian mortgage payments with semi-annual compounding and CMHC insurance.
About the Canadian Mortgage Calculator
What is the Canadian Mortgage Calculator?
A Canadian mortgage calculator applies the Canadian convention of semi-annual compounding and adds CMHC mortgage insurance when the down payment is under 20%.
Why use this calculator?
Canadian mortgages are quoted and compounded differently from US ones, so a standard US calculator gives the wrong payment. This tool accounts for the difference.
How to use it
- Enter the home price and your down payment.
- Enter the annual interest rate quoted by the lender.
- Choose the amortization period (often 25 years).
- See the payment with any CMHC insurance premiums included.
Formula
Effective monthly rate = (1 + annual rate/2)^(2/12) − 1
CMHC insurance premiums are added to the loan. The mortgage term is usually shorter than the amortization period.
Frequently Asked Questions
Why semi-annual compounding?
Canadian law requires interest on mortgages to be compounded semi-annually but paid monthly, which produces a slightly different payment than US compounding.
What is CMHC insurance?
Mortgage loan insurance required for high-ratio mortgages (under 20% down). It protects the lender and is paid by the borrower, typically added to the loan.
What is included in a monthly mortgage payment?
Most payments combine principal, interest, property taxes and homeowners insurance (often called PITI). Some loans also include private mortgage insurance (PMI).
What is PMI and when can I drop it?
Private mortgage insurance is usually required when your down payment is under 20%. You can typically request removal once you reach 20% equity.
Fixed versus adjustable rate — which is better?
A fixed rate keeps the same interest rate for the whole term, giving predictable payments. An adjustable rate starts lower but can rise after the initial period.
How much house can I afford?
A common guideline is that housing costs stay below 28% of gross monthly income and total debt below 36%, though lenders and budgets vary.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on self-reported data. Pre-approval is a verified commitment after a lender reviews your finances.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.