# 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.

Versione interattiva: https://www.calcopenly.com/it/finance/canadian-mortgage-calculator
Argomento: Calcolatori finanziari

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.

## Dati

- **Purchase price**
- **Enter down payment as** (opzioni: Percent of price, Amount)
- **Anticipo**: Minimum: 5% of the first $500,000 and 10% of the rest; 20% at $1.5 million or more (FCAC).
- **Anticipo**: 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. (opzioni: 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** (opzioni: 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.

## Risultati

- Mortgage payment — risultato principale
- Minimum down payment
- Anticipo
- 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

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

## Esempi svolti

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

- Purchase price: 375,000
- Enter down payment as: Percent of price
- Anticipo: 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%**
- Fonte di verifica: 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
- Anticipo: 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**
- Fonte di verifica: 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
- Anticipo: 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**
- Fonte di verifica: 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
- Anticipo: 5%
- Interest rate (per year): 4.5%
- Interest compounded: Semi-annually (fixed)
- Amortization: 30 years
- First-time buyer or newly built home: sì
- 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**
- Fonte di verifica: 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
- Anticipo: 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**
- Fonte di verifica: 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
- Anticipo: 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: sì
- 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**
- Fonte di verifica: 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

## Domande

### 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.

### Quanto è preciso «Canadian mortgage calculator»?

La precisione dipende dai dati inseriti e dalle ipotesi del metodo. Il calcolo decimale usa 50 cifre significative, ma stime, metodi numerici e dati di origine possono essere meno precisi; l’arrotondamento visualizzato non elimina questi limiti. Esempi svolti verificati con fonti indipendenti: 6. Per esempio, «FCAC table: 300,000 at 5% over 25 years» viene verificato con 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.

### Da dove proviene il metodo?

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.

## Fonti

- [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)

_Solo per pianificare. Finanziatori, autorità fiscali e mercati applicano propri arrotondamenti, costi e regole; conferma le cifre con loro prima di assumere impegni._