# Canadian mortgage calculator

> Canadian mortgage payment with semi-annual compounding, accelerated bi-weekly or weekly options, the CMHC insurance premium and the balance at renewal.

Interactive version: https://www.calcopenly.com/finance/canadian-mortgage-calculator
Subject: Finance calculators

Canadian fixed-rate mortgages compound interest twice a year. The Interest Act (section 6) requires a blended-payment mortgage to state its rate "calculated yearly or half-yearly, not in advance", so 5% means 2.5% every six months, or 5.0625% a year effective. Each payment uses the matching rate per period, for example (1.025)^(1/6) − 1 per month.

With the defaults, a 600,000 home with 10% down needs a CMHC premium of 3.10%, or 16,740, added to the 540,000 loan; at 4.5% over 25 years the 556,740 mortgage costs 3,081.41 a month. The Financial Consumer Agency of Canada's table gives 1,744.81 a month for 300,000 at 5% over 25 years, which this calculator reproduces.

Accelerated bi-weekly payments, half the monthly payment every two weeks, add the equivalent of one monthly payment a year. On that 300,000 mortgage they end the loan in 21.5 years and save 36,261.51 of interest.

## Inputs

- **Purchase price**
- **Enter down payment as** (options: Percent of price, Amount)
- **Down payment**: Minimum: 5% of the first $500,000 and 10% of the rest; 20% at $1.5 million or more (FCAC).
- **Down payment**: Minimum: 5% of the first $500,000 and 10% of the rest; 20% at $1.5 million or more (FCAC).
- **Interest rate (per year)**
- **Interest compounded**: Fixed-rate mortgages compound half-yearly under the Interest Act convention. Choose monthly only if your contract says interest compounds monthly. (options: Semi-annually (fixed), Monthly)
- **Amortization**: Insured mortgages: 25 years, or 30 if a borrower is a first-time buyer or the home is newly built (since December 15, 2024).
- **First-time buyer or newly built home**: Allows a 30-year amortization on an insured mortgage.
- **Payment frequency** (options: Monthly, Semi-monthly, Bi-weekly, Accelerated bi-weekly, Weekly, Accelerated weekly)
- **Mortgage term**: Years until renewal; the balance left then is renewed at the rate on offer.
- **Borrowed (non-traditional) down payment**: CMHC charges 4.50% instead of 4.00% above 90% loan-to-value.
- **Provincial sales tax on the premium**: Ontario, Quebec and Saskatchewan tax the premium; the tax is paid at closing and can't be added to the mortgage (CMHC). Check Revenu Québec for Quebec's rate.

## Results

- Mortgage payment — main result
- Minimum down payment
- Down payment
- Mortgage before insurance
- Loan-to-value
- CMHC premium rate
- Mortgage insurance premium
- Sales tax on the premium (cash)
- Total mortgage
- Effective annual rate
- Interest paid in the term
- Balance at renewal
- Total interest
- Time to pay off (years)
- Interest saved against monthly payments

## Formula

$$
i_p = \left(1+\tfrac{j}{2}\right)^{2/p} - 1,\quad M = \frac{L\,i_{12}}{1-(1+i_{12})^{-12a}}
$$

## Worked examples

### FCAC table: 300,000 at 5% over 25 years

- Purchase price: 375,000
- Enter down payment as: Percent of price
- Down payment: 20%
- Interest rate (per year): 5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 25 years
- Payment frequency: Monthly
- Mortgage term: 5 years
- **Mortgage payment: 1,744.81 per month**
- **Total interest: 223,444.49**
- **Interest paid in the term: 70,211.42**
- **Mortgage insurance premium: 0.00**
- **Effective annual rate: 5.0625%**
- Checked against: Financial Consumer Agency of Canada, Interest on mortgages: 5.00% row — monthly payment 1,744.81, 5-year interest 70,211.42, 25-year interest 223,444.49

### FCAC table: 300,000 at 2.5% over 25 years

- Purchase price: 375,000
- Enter down payment as: Amount
- Down payment: 75,000
- Interest rate (per year): 2.5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 25 years
- Payment frequency: Monthly
- Mortgage term: 5 years
- **Mortgage payment: 1,343.90 per month**
- **Total interest: 103,169.61**
- **Interest paid in the term: 34,547.72**
- Checked against: Financial Consumer Agency of Canada, Interest on mortgages: 2.50% row — 1,343.90 a month, 34,547.72 over 5 years, 103,169.61 over 25 years

### FCAC minimum down payment on a 600,000 home

- Purchase price: 600,000
- Enter down payment as: Amount
- Down payment: 35,000
- Interest rate (per year): 4.5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 25 years
- Payment frequency: Monthly
- Mortgage term: 5 years
- **Minimum down payment: 35,000.00**
- **CMHC premium rate: 4.00%**
- **Mortgage insurance premium: 22,600.00**
- **Total mortgage: 587,600.00**
- Checked against: FCAC: 5% of 500,000 + 10% of 100,000 = 35,000; CMHC table: LTV 94.17% → 4.00% × 565,000 = 22,600

### 30-year Home Start amortization at 5% down

- Purchase price: 500,000
- Enter down payment as: Percent of price
- Down payment: 5%
- Interest rate (per year): 4.5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 30 years
- First-time buyer or newly built home: yes
- Payment frequency: Monthly
- Mortgage term: 5 years
- **CMHC premium rate: 4.20%**
- **Mortgage insurance premium: 19,950.00**
- **Total mortgage: 494,950.00**
- **Mortgage payment: 2,495.61 per month**
- Checked against: CMHC Home Start premium schedule (90.01–95% LTV: 4.20%); Python decimal annuity at (1.0225)^(1/6) − 1 over 360 months

### Accelerated bi-weekly on the FCAC 5% example

- Purchase price: 375,000
- Enter down payment as: Percent of price
- Down payment: 20%
- Interest rate (per year): 5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 25 years
- Payment frequency: Accelerated bi-weekly
- Mortgage term: 5 years
- **Mortgage payment: 872.41 every 2 weeks**
- **Time to pay off: 21.50 years**
- **Total interest: 187,182.97**
- **Interest saved against monthly payments: 36,261.51**
- Checked against: Python decimal: 1,744.814955 ÷ 2 paid every two weeks at (1.025)^(2/26) − 1; balance clears in period 559; saved = 223,444.49 − 187,182.97

### Borrowed down payment with Ontario sales tax

- Purchase price: 400,000
- Enter down payment as: Percent of price
- Down payment: 5%
- Interest rate (per year): 4.5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 25 years
- Payment frequency: Monthly
- Mortgage term: 5 years
- Borrowed (non-traditional) down payment: yes
- Provincial sales tax on the premium: 8%
- **CMHC premium rate: 4.50%**
- **Mortgage insurance premium: 17,100.00**
- **Sales tax on the premium (cash): 1,368.00**
- **Total mortgage: 397,100.00**
- Checked against: CMHC table (90.01–95% LTV, non-traditional down payment: 4.50%); 8% Ontario retail sales tax on 17,100 = 1,368, paid in cash

## Questions

### Why are Canadian mortgages compounded semi-annually?

Section 6 of the Interest Act requires a mortgage with blended payments to state its rate calculated yearly or half-yearly, not in advance, and fixed rates are quoted with half-yearly compounding. A 5% rate is then 5.0625% effective a year instead of 5.1162% with monthly compounding. On 300,000 over 25 years the payment is 1,744.81 a month rather than 1,753.77.

### What is the minimum down payment in Canada?

5% of the price up to 500,000; 5% of the first 500,000 plus 10% of the rest up to 1.5 million; and 20% at 1.5 million or more, where mortgage insurance is not available (Financial Consumer Agency of Canada). A 600,000 home needs at least 25,000 + 10,000 = 35,000. With less than 20% down you typically need mortgage default insurance.

### How much is CMHC mortgage insurance?

CMHC charges a one-time premium on the loan: 2.80% at 80.01% to 85% loan-to-value, 3.10% up to 90% and 4.00% up to 95% (4.50% with a borrowed down payment). Amortizations over 25 years add 0.20 points. The premium is usually added to the mortgage; Ontario, Quebec and Saskatchewan charge sales tax on it, payable in cash. At 94.17% LTV on 565,000 the premium is 22,600.

### Can you get a 30-year mortgage in Canada?

Yes. Since December 15, 2024, an insured mortgage (under 20% down) can be amortized over 30 years if a borrower is a first-time buyer or the home is newly built (Department of Finance); others are capped at 25 years. With 5% down on 500,000 at 4.5%, 30 years costs 2,495.61 a month against 2,734.16 over 25 years, but 77,224.44 more interest.

### How much do accelerated bi-weekly payments save?

Paying half the monthly payment every two weeks makes 26 half-payments, or 13 monthly payments, a year. On 300,000 at 5% over 25 years, accelerated bi-weekly payments of 872.41 end the mortgage in 21.5 years and save 36,261.51 of interest; accelerated weekly payments of 436.20 save 36,673.39. Regular bi-weekly payments, set to last 25 years, save only 579.95.

### How accurate is the Canadian mortgage calculator?

Accuracy depends on your inputs and the method's assumptions. Decimal arithmetic uses 50 significant digits, but estimates, numerical methods and source data can be less precise; the displayed rounding does not remove those limits. It is checked against 6 worked examples whose answers come from independent sources; for example, “FCAC table: 300,000 at 5% over 25 years” is checked against Financial Consumer Agency of Canada, Interest on mortgages: 5.00% row — monthly payment 1,744.81, 5-year interest 70,211.42, 25-year interest 223,444.49.

### Where does the method come from?

Interest Act (R.S.C., 1985, c. I-15), section 6; Financial Consumer Agency of Canada — Interest on mortgages (payment table for 300,000 over 25 years); Financial Consumer Agency of Canada — Saving for a down payment; CMHC — Premium information for homeowner and small rental loans; CMHC — Home Start (30-year amortization premiums); Department of Finance Canada — Boldest mortgage reforms in decades come into force.

## Sources

- [Interest Act (R.S.C., 1985, c. I-15), section 6](https://laws-lois.justice.gc.ca/eng/acts/I-15/page-1.html)
- [Financial Consumer Agency of Canada — Interest on mortgages (payment table for 300,000 over 25 years)](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/interest-on-mortgages.html)
- [Financial Consumer Agency of Canada — Saving for a down payment](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/down-payment.html)
- [CMHC — Premium information for homeowner and small rental loans](https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/premium-information-for-homeowner-and-small-rental-loans)
- [CMHC — Home Start (30-year amortization premiums)](https://www.cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/mortgage-loan-insurance-homeownership-programs/home-start)
- [Department of Finance Canada — Boldest mortgage reforms in decades come into force](https://www.canada.ca/en/department-finance/news/2024/12/boldest-mortgage-reforms-in-decades-come-into-force-today.html)

_Note: financial information, not professional advice._