Canadian Mortgage Calculator
Calculate your mortgage payments and see amortization details for properties in Canada.
Mortgage Payment Summary
Mortgage Amount:
Payment Amount:
Total Interest:
Total Cost:
CMHC Insurance:
Disclaimer
This calculator provides estimates for informational purposes only and is not a substitute for professional financial advice. Actual mortgage terms, rates, and payments may vary. Please consult with a qualified mortgage professional or financial advisor before making any financial decisions.
Understanding Canadian Mortgages
A mortgage is likely the largest financial commitment you'll make in your lifetime. Our Canadian Mortgage Calculator helps you understand what to expect when financing your home purchase in Canada, including monthly payments, interest costs, and amortization details.
Key Components of a Canadian Mortgage
Canadian mortgages have several important components that affect your payments and total cost:
- Down Payment: The initial payment you make toward your home purchase. In Canada, minimum down payments range from 5% to 20% of the purchase price, depending on the home's value.
- Mortgage Loan Insurance: Required for down payments less than 20%, commonly called CMHC insurance.
- Interest Rate: The cost of borrowing money, expressed as a percentage of the loan amount.
- Amortization Period: The total time it will take to pay off your mortgage (typically 25 years in Canada).
- Term: The duration of your mortgage agreement, usually 1-5 years, after which you'll need to renew.
Canadian-Specific Mortgage Considerations
CMHC Insurance: For down payments less than 20%, mortgage loan insurance is required, which protects lenders against default. This insurance premium can be added to your mortgage amount.
Stress Test: Canadian borrowers must qualify at either the benchmark rate or their contract rate plus 2%, whichever is higher.
Payment Frequency Options: Canadian mortgages offer flexible payment schedules (monthly, bi-weekly, accelerated bi-weekly, etc.) that can help you save on interest.
Prepayment Privileges: Many Canadian mortgages allow for annual prepayments of 10-20% of the original principal without penalties.
How Our Calculator Works
- Enter your home price and down payment amount
- Specify your interest rate and amortization period
- Choose your preferred payment frequency
- Add any annual prepayment amount if applicable
- Click "Calculate Mortgage" to see your results
Tips for Canadian Homebuyers
Save for a 20% Down Payment: If possible, aim for a 20% down payment to avoid CMHC insurance premiums.
Consider Accelerated Payments: Accelerated bi-weekly payments can help you pay off your mortgage faster and save on interest.
Understand Fixed vs. Variable Rates: Fixed rates provide stability, while variable rates may offer savings if interest rates drop.
Budget for Additional Costs: Remember to account for property taxes, home insurance, utilities, and maintenance costs when planning your home purchase.
Frequently Asked Questions
What is CMHC insurance and when is it required?
CMHC (Canada Mortgage and Housing Corporation) insurance is mortgage loan insurance that's required when you make a down payment of less than 20% of the home's purchase price. This insurance protects the lender if you default on your mortgage. The premium ranges from 0.6% to 4.5% of your mortgage amount, depending on your down payment percentage, and can be added to your mortgage or paid upfront.
What's the difference between mortgage term and amortization period?
The mortgage term is the length of time you're committed to a specific mortgage contract and interest rate, typically ranging from 1 to 5 years in Canada. The amortization period is the total time it would take to pay off your mortgage completely, usually 25 years for most Canadian mortgages. At the end of each term, you'll need to renew your mortgage, potentially with different rates and conditions.
How does an accelerated bi-weekly payment schedule work?
With an accelerated bi-weekly payment schedule, you make payments every two weeks, but each payment is half of your monthly payment amount (rather than the monthly amount divided by 2.17, which would be the case for regular bi-weekly payments). This results in 26 payments per year, equivalent to 13 monthly payments instead of 12, helping you pay down your mortgage faster and save on interest over time.
What is the mortgage stress test in Canada?
The mortgage stress test requires borrowers to qualify for a mortgage at a higher interest rate than what they'll actually pay. This ensures borrowers can still afford their payments if interest rates increase. Specifically, you must qualify at either the Bank of Canada's benchmark rate or your contract rate plus 2%, whichever is higher. This test applies to all federally regulated lenders in Canada.