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Mortgage Payment Calculator Canada
Estimate your monthly mortgage payment the Canadian way — with semi-annual compounding — plus total interest and your full payoff picture.
Your mortgage payment
Enter your numbers — the estimate updates instantly.
Your home
20% down avoids CMHC insurance on most residential mortgages.
Your mortgage terms
Canadian fixed rates compound semi-annually, not in advance.
Insured mortgages (under 20% down) are capped at 25 years.
Your results
Principal and interest, per month.
Monthly payment
$0
Calculated with Canadian semi-annual compounding.
Total interest
$0
Total of payments
$0
Mortgage amount
Down payment
Number of payments
Planning estimate only. Payment covers principal and interest; budget separately for property tax, home insurance, and CMHC premiums if your down payment is under 20%.
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Compare lenders and book a free consultation with a licensed mortgage professional to find the best rate for your situation.
Book a free mortgage consultationHow are Canadian mortgage payments calculated?
Canadian mortgage payments use semi-annual compounding: the posted rate is compounded twice yearly, then converted to your payment frequency. Each payment covers that period’s interest first, with the rest reducing principal. Longer amortizations lower the payment but raise total interest paid over the life of the mortgage.
How mortgage payments are calculated in Canada
Canadian fixed-rate mortgages compound semi-annually, not in advance — a quirk that sets Canada apart from the United States. Lenders quote an annual rate compounded twice per year, so the equivalent monthly rate is (1 + rate ÷ 2)1/6 − 1. The result: the effective annual cost is very slightly lower than a US-style monthly-compounded loan at the same posted rate. This calculator uses the Canadian method, so your estimate matches what a Canadian lender would quote.
What your payment actually covers
Every mortgage payment is split between principal (paying down what you borrowed) and interest (the lender’s charge). Early in the amortization, most of each payment goes to interest; the split shifts toward principal over time. Property tax, CMHC insurance premiums and home insurance are usually billed separately — they are not part of the number above.
Amortization and payment frequency
| Situation | Maximum amortization |
|---|---|
| Insured mortgage (under 20% down) | 25 years |
| 20% or more down | Up to 30 years with most lenders |
Lenders also offer monthly, semi-monthly, bi-weekly and accelerated bi-weekly schedules. Accelerated bi-weekly payments equal one extra monthly payment per year, which can shave years off your amortization and save tens of thousands in interest.
Small rate changes, big payment swings
On a $480,000 mortgage over 25 years, a 4.5% rate costs about $2,657 per month; at 5.5% it is about $2,930 per month — roughly $273 more every month, or nearly $82,000 extra over the life of the amortization. That is why comparing rates before you commit matters so much.
Quick rule: every 1% on the rate moves the payment on a $480,000, 25-year mortgage by roughly $270 per month. Use the calculator above to test your own numbers.
Frequently asked questions
Why do Canadian mortgages use semi-annual compounding?
It is a long-standing Canadian convention: fixed mortgage rates are quoted as an annual rate compounded semi-annually, not in advance. The equivalent monthly rate is (1 + rate/2)^(1/6) − 1, which makes the effective cost very slightly lower than US-style monthly compounding at the same posted rate.
What is the difference between bi-weekly and accelerated bi-weekly payments?
Regular bi-weekly payments are simply your monthly payment split in two (26 half-payments per year, same annual total). Accelerated bi-weekly payments are your monthly payment divided by two but paid 26 times a year — the equivalent of one extra monthly payment annually — which can shave years off your amortization.
What is the minimum down payment in Canada?
5% on the first $500,000 of the price, 10% on the portion between $500,000 and $1,000,000, and 20% on homes above $1,000,000. Down payments under 20% require CMHC mortgage insurance on most residential mortgages.
Should I choose a 25-year or 30-year amortization?
A longer amortization lowers your monthly payment but substantially increases total interest paid. Insured mortgages (under 20% down) are capped at 25 years; with 20% or more down, lenders may offer up to 30 years.
Does this calculator include CMHC insurance and property tax?
No. The payment shown covers principal and interest only. Budget separately for property tax, home insurance, and CMHC premiums if your down payment is under 20%.
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