Introduction
This Canadian mortgage calculator shows you exactly what your mortgage payments will be. Enter your mortgage amount, down payment, interest rate, and amortization period to get results in seconds. The calculator uses semi-annual compounding, which is required by Canadian law for fixed-rate mortgages, so your numbers will match what your lender gives you.
It also figures out if you need CMHC mortgage insurance (required when your down payment is less than 20%) and adds the premium to your principal automatically. You can compare monthly, bi-weekly, weekly, and accelerated payment options to see how much interest you can save. The built-in mortgage stress test shows the qualifying rate lenders use to approve your loan.
Choose a fixed or variable rate, pick your term length, and add optional prepayments to see how extra payments shorten your amortization. The calculator gives you a full payment schedule, a principal-vs-interest chart, and a step-by-step breakdown of every formula used.
How to Use Our Canadian Mortgage Calculator
Enter your mortgage details below to see your payment amount, total interest cost, amortization schedule, and how much you will pay over the life of your loan.
Live Rate Reference: Click any rate tile at the top to auto-fill the interest rate, term, and rate type. These are sample rates for quick comparison.
Mortgage Amount: Enter the amount you plan to borrow. This is the home price minus your down payment, not the full purchase price. If you are still deciding how much home you can afford, try our Home Affordability Calculator.
Down Payment: Enter your down payment in dollars or as a percent of the purchase price. In Canada, you must put down at least 5%. If your down payment is less than 20%, CMHC mortgage insurance will be added to your total.
Interest Rate: Enter the annual interest rate from your lender. This field updates automatically when you pick a term from the dropdown or click a rate tile, but you can type in your own rate at any time. To understand how your nominal rate translates to an effective annual cost, see our APR Calculator.
Rate Type & Openness: Choose Fixed if your rate stays the same for the term, or Variable if it can change with the prime rate. Choose Closed for a lower rate with prepayment limits, or Open if you want to pay off your mortgage early without penalty.
Mortgage Term & Rate: Pick your term length from the dropdown. The term is how long your current mortgage contract lasts. Choose "I have my own rate / custom term" to enter a custom term length and rate.
Amortization Period: Set the total number of years and months to pay off your mortgage in full. Most buyers choose 25 years. Some first-time buyers may qualify for up to 30 years. For a deeper look at how amortization works, use our Amortization Calculator.
Payment Frequency: Choose how often you make payments. Monthly is the most common. Accelerated options split your monthly payment into smaller, more frequent payments, which helps you pay off your mortgage faster and save on interest. Our Biweekly Mortgage Calculator can show you the savings of switching to bi-weekly payments in more detail.
Prepayments (Optional): Click this section to add extra payments on top of your regular ones. Enter the extra amount, choose how often you want to make it (one-time, yearly, or every payment), and pick which payment number to start on. You can also use our Mortgage Extra Payment Calculator to explore different prepayment strategies.
Once all fields are filled in, click Calculate Mortgage to see your results. Click Reset to return all fields to their default values.
How Canadian Mortgages Work
A mortgage is a loan you use to buy a home. You borrow money from a bank or lender, then pay it back over many years with interest. In Canada, mortgages follow rules that are different from other countries. Interest is compounded semi-annually, which means the bank calculates interest twice a year. This is required by Canadian law.
Down Payment Rules in Canada
When you buy a home in Canada, you must put down at least 5% of the purchase price. If your down payment is less than 20%, you must pay for CMHC mortgage default insurance. This protects the lender if you cannot make your payments. The insurance premium is added to your mortgage, which means you borrow a bit more than the home price minus your down payment. You can use our LTV Calculator to check your loan-to-value ratio and see whether insurance applies.
Mortgage Term vs. Amortization
A mortgage has two time periods you need to know. The term is how long your current rate and contract last, usually between 1 and 5 years. The amortization is the total time to pay off the full loan, usually 25 years. When your term ends, you renew your mortgage at a new rate.
Fixed vs. Variable Rates
A fixed rate stays the same for the whole term. A variable rate moves up or down based on the prime rate set by banks. Fixed rates give you steady payments. Variable rates can save you money if rates drop, but your costs go up if rates rise. To compare how much a rate change affects total borrowing cost, try our Interest Rate Calculator.
Payment Frequency and Accelerated Payments
You can choose how often you make payments — monthly, bi-weekly, or weekly. Accelerated options split your monthly payment into smaller, more frequent amounts. This adds up to roughly one extra monthly payment each year. Over time, this pays off your mortgage faster and saves you money on interest. To see exactly how much time you can cut off, check out our Mortgage Payoff Calculator.
The Mortgage Stress Test
Canadian banks must check that you can afford payments at a higher rate than the one you are offered. This is called the stress test. You must qualify at either your rate plus 2% or the Bank of Canada's minimum qualifying rate, whichever is higher. This rule helps make sure you can still pay if rates go up. Your debt-to-income ratio also plays a key role in how much lenders will approve you for.