Canadian
Mortgage
Calculator
Calculate your monthly payment, stress test rate, CMHC insurance premium, and full amortization schedule — built specifically for Canada.
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CMHC stress test
All mortgages must qualify at the higher of your contract rate + 2%, or 5.25%. This is the rate lenders use to ensure you can handle rate increases.
GDS = gross debt service ratio (housing costs ÷ income). TDS = total debt service ratio (all debt ÷ income). Estimated property tax (~1% annually) and heating (~$150/mo) are included.
Amortization schedule
Year-by-year breakdown showing how much goes to principal vs. interest — and how your equity grows over time.
| Year | Principal paid | Interest paid | Balance remaining | Equity |
|---|
Frequently asked questions
Everything you need to know about Canadian mortgage calculations.
What is the CMHC stress test in Canada?
The CMHC mortgage stress test requires all federally regulated lenders to qualify borrowers at the higher of their contract rate plus 2%, or 5.25% — whichever is greater. This means if your mortgage rate is 4%, the lender checks whether you can afford payments at 6%. The stress test was introduced by OSFI under Guideline B-20 to ensure Canadians can handle rate increases without defaulting. Uninsured mortgages (20%+ down) and mortgages at credit unions may be subject to different rules depending on the province.
How much down payment do I need in Canada?
The minimum down payment in Canada depends on the home price. For homes under $500,000, the minimum is 5%. For homes between $500,000 and $999,999, it's 5% on the first $500,000 plus 10% on the remaining amount. For homes between $1,000,000 and $1,500,000, the minimum is 20%. Homes over $1,500,000 require 20% and are not eligible for CMHC mortgage insurance. A down payment of 20% or more eliminates the need for CMHC insurance and saves thousands in premiums.
What is CMHC mortgage insurance and how much does it cost?
CMHC mortgage default insurance protects lenders — not borrowers — if you default on your mortgage. It's required for any home purchase with less than 20% down. The premium is calculated as a percentage of your mortgage amount: 4.00% if your down payment is 5–9.99%, 3.10% if it's 10–14.99%, and 2.80% if it's 15–19.99%. The premium is added to your mortgage balance and paid off over the amortization period. On a $600,000 mortgage with 5% down, the CMHC premium is $22,800. As of December 2024, homes up to $1.5 million can now qualify for insured mortgages.
What is the maximum amortization period in Canada?
For insured mortgages (less than 20% down payment), the maximum amortization period is 25 years for existing homes. First-time buyers purchasing a newly built home may qualify for a 30-year amortization under rules introduced in 2024. For uninsured mortgages (20%+ down payment), lenders may offer up to 30 years. A longer amortization reduces monthly payments but significantly increases total interest paid over the life of the mortgage.
What is land transfer tax and which provinces charge it?
Land transfer tax (LTT) is paid when you purchase property. Ontario, BC, Quebec, Manitoba, PEI, New Brunswick, and Newfoundland all charge it. Alberta, Saskatchewan, and the territories do not charge provincial LTT. Ontario and BC offer rebates for first-time home buyers.
Is bi-weekly payment better than monthly?
With monthly payments you make 12 payments per year. With bi-weekly (every two weeks), you make 26 — equivalent to 13 monthly payments per year. That extra payment goes entirely to principal, typically reducing your amortization by 3–4 years and saving tens of thousands in interest.
How is a Canadian mortgage calculated differently from the US?
The key difference is compounding frequency. Canadian mortgages are legally required to compound semi-annually — twice per year. American mortgages compound monthly — 12 times per year. While this sounds minor, it produces meaningfully different payment amounts. A Canadian 5% mortgage is actually equivalent to a monthly-compounding rate of approximately 5.063%. The correct formula for the monthly rate in Canada is: (1 + annual rate ÷ 2)^(1/6) − 1. This calculator uses this exact Canadian formula, which most online mortgage calculators (built for the US) do not.
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How Canadian mortgages work
Key facts every Canadian homebuyer needs to know.
Unlike American mortgages which compound monthly, Canadian law requires mortgages to compound semi-annually. This makes Canadian mortgages slightly cheaper than they appear. The true monthly rate is: (1 + annual rate ÷ 2)^(1/6) − 1. This calculator uses this exact formula.
All federally regulated lenders must qualify you at the higher of your contract rate + 2%, or 5.25%. This ensures you can still afford your mortgage if rates rise. Many buyers are surprised to find they qualify for less than expected — this is the stress test at work.
If your down payment is less than 20%, you must pay CMHC mortgage insurance. This protects the lender (not you) if you default. The premium ranges from 2.8% to 4.0% of the mortgage amount and is added to your mortgage balance, not paid upfront.
Your amortization is the total repayment period (typically 25 years). Your term is how long your rate is locked in (typically 5 years). At the end of each term, you renew at current rates — which is why today's high-rate environment is hitting renewal borrowers hard.
Most provinces charge a land transfer tax when you buy property. Toronto buyers pay a double land transfer tax (municipal + provincial) which can add $15,000+ to the cost of a $700K home. First-time buyers get partial rebates in Ontario, BC, and PEI.
Lenders use two debt ratios: GDS (housing costs ÷ income) must be ≤ 39%, and TDS (all debt payments ÷ income) must be ≤ 44%. If either ratio is exceeded, most lenders will decline your application regardless of credit score.