Finance
Canadian Mortgage Calculator
Calculate Canadian mortgage payments with semi-annual compounding and CMHC insurance.
How to Use
- Enter the home price in Canadian dollars.
- Set your down payment. CMHC insurance is required if it's less than 20%.
- Enter the stated annual rate. The calculator automatically converts it to the effective monthly rate using semi-annual compounding as mandated by Canadian law.
- Choose your amortization period (max 25 years for insured mortgages) and mortgage term.
- Select your preferred payment frequency. Accelerated bi-weekly payments save significant interest.
Formula
Effective Rate = (1 + Stated Rate/2)^(1/6) − 1
(Semi-annual compounding → monthly effective rate)
CMHC Premium:
5–9.99% down → 4.00% | 10–14.99% → 3.10%
15–19.99% down → 2.80% | 20%+ → 0%
(Semi-annual compounding → monthly effective rate)
CMHC Premium:
5–9.99% down → 4.00% | 10–14.99% → 3.10%
15–19.99% down → 2.80% | 20%+ → 0%
Canadian mortgages are unique: they compound semi-annually (not monthly), which means the effective monthly rate is slightly different from the stated rate. CMHC (Canada Mortgage and Housing Corporation) insurance is mandatory for down payments under 20%, protecting lenders against default. Learn more at CMHC official site.