Mortgage Calculator Canada
Calculate your Canadian mortgage payment with CMHC insurance for down payments under 20%, semi-annual compounding, stress test qualification rate, and amortization comparison. All calculations run privately in your browser — no data is shared.
How Canadian Mortgage Payments Work
A Canadian mortgage payment calculator determines your regular payment based on the loan amount, interest rate, and amortization period. Unlike American mortgages that compound monthly, Canadian mortgages use semi-annual compounding as required by the Bank Act. This means the effective monthly rate is calculated as (1 + annual rate / 2)^(1/6) - 1, which produces slightly lower payments compared to monthly compounding at the same nominal rate.
When your down payment is less than 20% of the home price, CMHC mortgage default insurance is mandatory in Canada. The insurance premium ranges from 2.80% to 4.00% of the mortgage amount and is added to your loan principal. Based on 2026 CMHC rates: a 5-9.99% down payment carries a 4.00% premium, 10-14.99% carries 3.10%, and 15-19.99% carries 2.80%. The minimum down payment in Canada is 5% on the first $500,000 and 10% on any portion above $500,000.
Understanding the Stress Test
Since 2018, all Canadian mortgage applicants must qualify at the stress test rate, which is the higher of your contract rate plus 2% or the Bank of Canada qualifying rate of 5.25%. This means even if your actual mortgage rate is 4.50%, you must prove you can afford payments at 6.50%. The stress test applies to all insured and uninsured mortgages at federally regulated lenders. This calculator shows your stress test payment so you can verify your qualification before visiting a lender.
Payment frequency also affects total interest paid. Standard bi-weekly payments divide the monthly payment by two and pay 26 times per year. Accelerated bi-weekly takes the monthly payment, divides by two, and pays that amount 26 times — effectively making one extra monthly payment per year. Accelerated bi-weekly typically shaves 2-3 years off a 25-year amortization and saves thousands in interest.
CMHC Insurance Rates for 2026
CMHC insurance protects the lender if you default on your mortgage. The premium is a one-time cost added to your mortgage principal. Current CMHC premium rates are: 4.00% for down payments of 5% to 9.99%, 3.10% for 10% to 14.99%, and 2.80% for 15% to 19.99%. With 20% or more down, no insurance is required and you can choose amortization periods up to 30 years. Insured mortgages are limited to a maximum 25-year amortization. On a $500,000 home with 5% down ($25,000), the CMHC premium would be $19,000, bringing your total mortgage to $494,000.
All calculations in this tool run entirely in your browser using standard Canadian mortgage math. No financial data is sent to any server. For pre-approval and personalized advice on mortgage products, contact a licensed Canadian mortgage broker.
Frequently Asked Questions
Frequently Asked Questions
What is CMHC mortgage insurance in Canada?
CMHC mortgage default insurance is mandatory when your down payment is less than 20% of the home price. It protects the lender if you default. The premium ranges from 2.80% to 4.00% of the mortgage amount and is added to your loan principal. You pay interest on the insurance premium over the life of the mortgage.
Why do Canadian mortgages compound semi-annually?
Canadian law (the Bank Act) requires fixed-rate mortgages to compound interest semi-annually, not monthly. This means interest is calculated twice per year, resulting in a slightly lower effective rate than monthly compounding at the same nominal rate. Variable-rate mortgages typically compound monthly.
What is the mortgage stress test in Canada?
The mortgage stress test requires you to qualify at the higher of your contract rate plus 2% or the Bank of Canada qualifying rate (currently 5.25%). This ensures borrowers can handle potential rate increases. It applies to all mortgages at federally regulated lenders, including renewals with a new lender.
What is the minimum down payment in Canada?
The minimum down payment is 5% on the first $500,000 of the home price and 10% on any portion above $500,000. For homes over $1 million, the minimum is 20%. With less than 20% down, CMHC mortgage insurance is required.
How does accelerated bi-weekly payment save money?
Accelerated bi-weekly takes your monthly payment, divides it by two, and you pay that amount every two weeks (26 payments per year). This equals 13 monthly payments per year instead of 12, putting one extra payment toward principal annually. Over 25 years, this typically saves tens of thousands in interest and pays off your mortgage 2-3 years early.
Can I get a 30-year amortization in Canada?
A 30-year amortization is only available for conventional (uninsured) mortgages where your down payment is 20% or more. Insured mortgages with CMHC are limited to a maximum 25-year amortization. Longer amortization lowers monthly payments but increases total interest paid significantly.