Why is the Canadian rate different from the US?

Canadian quoted rates are compounded semi-annually, not monthly. The calculator converts the quoted rate into the true monthly rate, so payments match what a Canadian lender will charge.

What is CMHC insurance?

Mortgage default insurance from Canada Mortgage and Housing Corporation, required when the down payment is under 20%. Premiums range roughly 2.8%–4% of the loan and can be financed.

Can I pay my mortgage off early?

Closed mortgages cap prepayments (often 10–20% per year); open mortgages allow unlimited prepayment at a higher rate.

Canadian Mortgage Calculator

Purpose-built for Canadian home buyers: payments use the Canadian convention of interest compounded semi-annually, quoted in Canadian dollars. See monthly costs including property tax, insurance and HOA, plus a full amortization schedule and payoff date.

#canadian mortgage#cmhc#semi-annual compounding#canada home loan#mortgage payment canada

Live calculate

Presets

Home Price

Down Payment

Under 20% requires CMHC mortgage default insurance.

Amortization

years

Interest Rate

Quoted rate — compounded semi-annually, the Canadian standard.

Property Taxes

% / year

Home Insurance

C$/year

Mortgage Insurance (CMHC)

C$/year

Condo / HOA Fee

C$/year

Other Costs

C$/year

First Payment Date

Live mode: results update as you type.

Monthly Payment

$3,722.27

C$4,631 total out-of-pocket · $640,000 amortized over 25 yrs

House Price: C$$800,000
Down Payment: C$$160,000 (20.0%)
Loan Amount: C$$640,000
Mortgage Payment (P&I): $3,722.27
Property Tax: $200.00
Home Insurance: $208.33
Total of Payments: C$$1,389,182
Total Interest: C$$476,682
Monthly-Equiv. Rate: 0.4124%
Payoff Date: November 8, 2051

Monthly out-of-pocket breakdown

Mortgage P&I$3,722
Property Tax$200
Insurance$208
HOA$0
Other Costs$500

Amortization schedule (annual)

Year	Beginning Balance	Total Paid	Principal	Interest	Ending Balance
Year 1	$640,000.00	$44,667.26	$13,294.44	$31,372.82	$626,705.56
Year 2	$626,705.56	$44,667.26	$13,967.47	$30,699.79	$612,738.09
Year 3	$612,738.09	$44,667.26	$14,674.58	$29,992.69	$598,063.51
Year 4	$598,063.51	$44,667.26	$15,417.48	$29,249.79	$582,646.03
Year 5	$582,646.03	$44,667.26	$16,197.99	$28,469.28	$566,448.05
Year 6	$566,448.05	$44,667.26	$17,018.01	$27,649.25	$549,430.04
Year 7	$549,430.04	$44,667.26	$17,879.55	$26,787.72	$531,550.49
Year 8	$531,550.49	$44,667.26	$18,784.70	$25,882.56	$512,765.79
Year 9	$512,765.79	$44,667.26	$19,735.67	$24,931.59	$493,030.12
Year 10	$493,030.12	$44,667.26	$20,734.79	$23,932.47	$472,295.33
Year 11	$472,295.33	$44,667.26	$21,784.49	$22,882.77	$450,510.84
Year 12	$450,510.84	$44,667.26	$22,887.33	$21,779.93	$427,623.51
Year 13	$427,623.51	$44,667.26	$24,046.00	$20,621.26	$403,577.50
Year 14	$403,577.50	$44,667.26	$25,263.33	$19,403.93	$378,314.17
Year 15	$378,314.17	$44,667.26	$26,542.29	$18,124.98	$351,771.89
Year 16	$351,771.89	$44,667.26	$27,885.99	$16,781.27	$323,885.90
Year 17	$323,885.90	$44,667.26	$29,297.72	$15,369.54	$294,588.18
Year 18	$294,588.18	$44,667.26	$30,780.92	$13,886.35	$263,807.26
Year 19	$263,807.26	$44,667.26	$32,339.20	$12,328.06	$231,468.06
Year 20	$231,468.06	$44,667.26	$33,976.37	$10,690.89	$197,491.69
Year 21	$197,491.69	$44,667.26	$35,696.42	$8,970.84	$161,795.27
Year 22	$161,795.27	$44,667.26	$37,503.56	$7,163.71	$124,291.71
Year 23	$124,291.71	$44,667.26	$39,402.17	$5,265.09	$84,889.54
Year 24	$84,889.54	$44,667.26	$41,396.91	$3,270.35	$43,492.63
Year 25	$43,492.63	$44,667.26	$43,492.63	$1,174.64	$0.00

Canadian mortgages compound interest semi-annually, so the effective monthly rate is r = (1 + rate/2)^(1/6) − 1 — slightly lower than US monthly compounding at the same quoted rate. Amortization traditionally runs 25 years but contracts renew in 5-year (or shorter) terms, when the rate can be renegotiated.

Most useful next

Formula

monthly rate r = (1 + rate/2)^(1/6) − 1; Payment = P·r·(1+r)^n / ((1+r)^n − 1)

• Canadian rates compound semi-annually by law/ convention
• Convert to the monthly-equivalent rate: r = (1 + annual/2)^(1/6) − 1
• Then use the standard annuity payment formula with n = years × 12

Pro tips

• A 20%+ down payment avoids CMHC insurance entirely.
• Biweekly accelerated payments (half the monthly amount every 2 weeks) make 26 half-payments a year and cut years off the amortization.
• At renewal, compare open vs closed mortgages — closed rates are lower but limit prepayments.

FAQ

Related Calculators

More Finance tools you might need.

Canadian Mortgage Calculator

#canadian mortgage#cmhc#semi-annual compounding#canada home loan#mortgage payment canada

Year

Beginning Balance

Total Paid

Principal

Interest

Ending Balance

Year 1

$640,000.00

$44,667.26

$13,294.44

$31,372.82

$626,705.56

Year 2

$626,705.56

$44,667.26

$13,967.47

$30,699.79

$612,738.09

Year 3

$612,738.09

$44,667.26

$14,674.58

$29,992.69

$598,063.51

Year 4

$598,063.51

$44,667.26

$15,417.48

$29,249.79

$582,646.03

Year 5

$582,646.03

$44,667.26

$16,197.99

$28,469.28

$566,448.05

Year 6

$566,448.05

$44,667.26

$17,018.01

$27,649.25

$549,430.04

Year 7

$549,430.04

$44,667.26

$17,879.55

$26,787.72

$531,550.49

Year 8

$531,550.49

$44,667.26

$18,784.70

$25,882.56

$512,765.79

Year 9

$512,765.79

$44,667.26

$19,735.67

$24,931.59

$493,030.12

Year 10

$493,030.12

$44,667.26

$20,734.79

$23,932.47

$472,295.33

Year 11

$472,295.33

$44,667.26

$21,784.49

$22,882.77

$450,510.84

Year 12

$450,510.84

$44,667.26

$22,887.33

$21,779.93

$427,623.51

Year 13

$427,623.51

$44,667.26

$24,046.00

$20,621.26

$403,577.50

Year 14

$403,577.50

$44,667.26

$25,263.33

$19,403.93

$378,314.17

Year 15

$378,314.17

$44,667.26

$26,542.29

$18,124.98

$351,771.89

Year 16

$351,771.89

$44,667.26

$27,885.99

$16,781.27

$323,885.90

Year 17

$323,885.90

$44,667.26

$29,297.72

$15,369.54

$294,588.18

Year 18

$294,588.18

$44,667.26

$30,780.92

$13,886.35

$263,807.26

Year 19

$263,807.26

$44,667.26

$32,339.20

$12,328.06

$231,468.06

Year 20

$231,468.06

$44,667.26

$33,976.37

$10,690.89

$197,491.69

Year 21

$197,491.69

$44,667.26

$35,696.42

$8,970.84

$161,795.27

Year 22

$161,795.27

$44,667.26

$37,503.56

$7,163.71

$124,291.71

Year 23

$124,291.71

$44,667.26

$39,402.17

$5,265.09

$84,889.54

Year 24

$84,889.54

$44,667.26

$41,396.91

$3,270.35

$43,492.63

Year 25

$43,492.63

$44,667.26

$43,492.63

$1,174.64

$0.00

Canadian Mortgage Calculator

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