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 stress test requires all mortgage applicants to qualify at the higher of their contract rate + 2%, or 5.25% — whichever is greater. This ensures you can still afford your mortgage if interest rates rise. As of 2025, this applies to all insured mortgages (down payment under 20%) and most uninsured mortgages at federally regulated lenders.
How much down payment do I need in Canada?
Minimum down payments in Canada: 5% for homes up to $500,000; 5% on the first $500K + 10% on the portion between $500K–$999,999; and 20% for homes $1M or more. Putting less than 20% down requires CMHC mortgage default insurance.
What is CMHC mortgage insurance and how much does it cost?
CMHC mortgage default insurance protects the lender if you default. It's required when your down payment is less than 20%. The premium ranges from 0.60% to 4.00% of the mortgage amount depending on your down payment. It's added to your mortgage and paid over the amortization period.
What is the maximum amortization period in Canada?
For insured mortgages (down payment under 20%), the maximum amortization is 25 years. For uninsured mortgages (20%+ down), some lenders offer up to 30 years. Longer amortization means lower monthly payments but significantly more total interest paid.
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?
In Canada, mortgage interest is compounded semi-annually (twice per year) by law, not monthly like in the US. The correct Canadian monthly rate is: (1 + annual rate ÷ 2)^(1/6) − 1. This calculator uses this formula. Many online tools incorrectly use the US monthly compounding method, which gives slightly wrong results for Canadian mortgages.
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View all 16 tools →Results are estimates for informational purposes only — not financial advice. Always consult a licensed professional before making decisions. Terms of use →
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.