Canadian Mortgage Payment Calculator
How This Mortgage Calculator Works
This calculator follows Canadian mortgage conventions, which differ from US conventions:
- Semi-annual compounding: Canadian law requires mortgages to compound interest semi-annually (twice/year), not monthly. This calculator applies the Canadian effective monthly rate formula.
- CMHC Insurance: If your down payment is less than 20%, CMHC mortgage default insurance is automatically added to your loan amount. Premiums range from 0.6% to 4.0% of the loan amount depending on down payment percentage.
- Amortization periods: Insured mortgages (under 20% down) max out at 25 years. Uninsured mortgages can go up to 30 years with some lenders.
CMHC Mortgage Insurance Premiums
| Down Payment | % of Purchase Price | CMHC Premium |
|---|---|---|
| 5% – 9.99% | 5% – 9.99% | 4.00% of loan |
| 10% – 14.99% | 10% – 14.99% | 3.10% of loan |
| 15% – 19.99% | 15% – 19.99% | 2.80% of loan |
| 20%+ | 20%+ | No CMHC required |
CMHC insurance protects the lender (not you) against default. The premium is added to your mortgage balance and amortized over the life of your loan. On a $500,000 home with 5% down ($25,000), the CMHC premium is 4.00% × $475,000 = $19,000 — added to your mortgage for a total loan of $494,000.
Understanding Amortization
In the early years of a mortgage, the majority of each payment goes toward interest. Over time, as the principal decreases, more goes toward principal. This is called amortization. For example, on a $600,000 mortgage at 4.89% over 25 years:
- Month 1: ~$2,337 interest, ~$446 principal
- Year 5: ~$2,214 interest, ~$569 principal
- Year 15: ~$1,822 interest, ~$961 principal
- Year 25: ~$14 interest, ~$2,769 principal
Payment Frequency Options
Paying more frequently than monthly can significantly reduce total interest:
- Monthly: 12 payments/year — standard option
- Semi-monthly: 24 payments/year — splits monthly payment in two; virtually identical to monthly overall
- Biweekly: 26 payments/year — same amount per period as semi-monthly; slightly faster
- Accelerated biweekly: 26 payments/year but each payment = half the monthly payment. This results in making one extra monthly payment per year — saving years of amortization and thousands in interest
- Weekly: 52 payments per year
Build Your Down Payment with KOHO
Every extra percentage point of down payment saves you on CMHC premiums and interest. KOHO earns up to 5% on savings — helping you reach 20% down faster and eliminating CMHC insurance entirely. Get $20 free.
Open KOHO — Use Code 45ET55JSYA