Canadian Mortgage Calculator
Payments use Canadian semi-annual compounding, add CMHC insurance when you put down less than 20%, and show what you'll owe at renewal.
Mortgage payment · monthly
$3,338.19
$603,135.00 borrowed · paid off in 25 years
of what you repay is the loan itself
- Principal and interest$3,338.1986%
- Property tax$375.0010%
- Home insurance$150.004%
Total interest
$398,321.56
Over the life of the mortgage
Balance at renewal
$529,530.69
After the 5-year term
Includes a $18,135.00 mortgage loan insurance premium (3.1% of the loan) added to the mortgage.
Monthly cost, line by line
| Principal and interest (monthly) | $3,338.19 |
| Property tax | $375.00 |
| Home insurance | $150.00 |
| Total monthly housing cost | $3,863.19 |
How this is calculated
Purchase price
Price of the home.
$650,000.00
Down payment
10% of the price.
-$65,000.00
Mortgage loan insurance
With less than 20% down, a 3.1% premium on the loan is added to the mortgage.
$18,135.00
Mortgage amount
The amount you borrow.
$603,135.00
Interest rate per payment
Canadian fixed rates compound twice a year, so 4.5% works out to 0.37153% per payment at 12 payments a year.
Payment
Level payment that repays the mortgage over 25 years.
$3,338.19
Total interest
Over 25 years.
$398,321.56
Balance at renewal
What you'll still owe after the 5-year term.
$529,530.69
Amortization schedule by year
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $26,617.63 | $13,440.65 | $589,694.35 |
| 2 | $26,006.00 | $14,052.28 | $575,642.07 |
| 3 | $25,366.53 | $14,691.75 | $560,950.32 |
| 4 | $24,697.96 | $15,360.32 | $545,590.00 |
| 5 | $23,998.97 | $16,059.31 | $529,530.69 |
| 6 | $23,268.17 | $16,790.11 | $512,740.58 |
| 7 | $22,504.12 | $17,554.16 | $495,186.42 |
| 8 | $21,705.29 | $18,352.99 | $476,833.43 |
| 9 | $20,870.13 | $19,188.15 | $457,645.28 |
| 10 | $19,996.94 | $20,061.34 | $437,583.94 |
| 11 | $19,084.03 | $20,974.25 | $416,609.69 |
| 12 | $18,129.57 | $21,928.71 | $394,680.98 |
| 13 | $17,131.67 | $22,926.61 | $371,754.37 |
| 14 | $16,088.37 | $23,969.91 | $347,784.46 |
| 15 | $14,997.58 | $25,060.70 | $322,723.76 |
| 16 | $13,857.15 | $26,201.13 | $296,522.63 |
| 17 | $12,664.86 | $27,393.42 | $269,129.21 |
| 18 | $11,418.27 | $28,640.01 | $240,489.20 |
| 19 | $10,114.96 | $29,943.32 | $210,545.88 |
| 20 | $8,752.39 | $31,305.89 | $179,239.99 |
| 21 | $7,327.76 | $32,730.52 | $146,509.47 |
| 22 | $5,838.31 | $34,219.97 | $112,289.50 |
| 23 | $4,281.08 | $35,777.20 | $76,512.30 |
| 24 | $2,652.99 | $37,405.29 | $39,107.01 |
| 25 | $950.83 | $39,107.01 | $0.00 |
Assumptions
- Fixed rate compounded semi-annually, as Canadian lenders quote it. The rate is assumed to stay the same after renewal.
- Property tax and insurance are your estimates; they usually rise over time.
Worked examples
Monthly payments, semi-annual compounding, before tax and insurance.
| Scenario | Mortgage | Payment | Total interest | Paid off |
|---|---|---|---|---|
| $400,000 home, 20% down, 6.5%, 30 years | $320,000 | $2,004.49 | $401,614 | 30 years |
| $600,000 home, 10% down, 5.5%, 25 years | $556,740 | $3,398.29 | $462,749 | 25 years |
| $300,000 home, 5% down, 6%, 25 years | $296,400 | $1,896.39 | $272,515 | 25 years |
Frequently asked questions
What is the monthly payment on a $320,000 mortgage at 6.5%?
$2,004.49 a month over 30 years, before property tax and insurance. Total interest over the life of the loan is $401,614.
How is mortgage interest calculated in Canada?
Fixed-rate mortgages in Canada are quoted with interest compounded semi-annually, not monthly. A 5% rate works out to about 0.4124% a month, slightly less than 5% ÷ 12, which is why Canadian payments are a little lower than US payments at the same rate.
What is the minimum down payment in Canada?
5% of the first $500,000 and 10% of the portion above that, up to $1.5 million. At $1.5 million or more you need 20%. A $700,000 home needs at least $45,000; a $500,000 home needs $25,000.
How much is CMHC insurance?
With less than 20% down, a premium is added to your mortgage: 0.6% up to 65% loan-to-value, 1.7% up to 75% loan-to-value, 2.4% up to 8% loan-to-value, 2.8% up to 85% loan-to-value, 3.1% up to 9% loan-to-value, 4% up to 95% loan-to-value. In Ontario, Quebec and Saskatchewan, provincial sales tax on the premium is paid at closing.
What does accelerated biweekly mean?
You pay half your monthly payment every two weeks. That's 26 half-payments, or 13 monthly payments a year instead of 12, so the mortgage is paid off years sooner.
Sources
- CMHC Mortgage Loan Insurance cost: premium on total loan by loan-to-value
- Financial Consumer Agency of Canada: minimum down payment by purchase price
- OSFI minimum qualifying rate: greater of the contract rate plus 2% or 5.25%
- Interest Act, section 6: mortgage rates must be stated calculated yearly or half-yearly, not in advance
- FCAC sample fixed-rate mortgage disclosure: interest compounded twice per year, charged monthly
- CMHC, Calculating GDS / TDS: 39% GDS and 44% TDS, 50% of condo fees included, qualifying rate
Estimates for information only; not tax, legal or financial advice. See our methodology.