Canadian mortgage payment calculator (semi-annual compounding)
Canadian closed mortgages compound interest semi-annually under the Interest Act — not monthly like a US calculator, which overstates the payment. Enter price, down payment, and rate to see Canadian principal and interest, a CMHC (or equivalent) premium when the purchase is high-ratio (under 20% down), and the stress-test qualifying payment at max(contract + 2%, 5.25%). For maximum purchase price from income, open the affordability calculator. Rules verified 2026-07-13. Educational only — not a pre-approval.
Rules verified: 2026-07-13 · Methodology · OSFI MQR · CMHC premium schedule
| Mortgage | Canadian (semi-annual) | US-style monthly |
|---|---|---|
| $300,000 | $1,626 | $1,632 |
| $400,000 | $2,167 | $2,176 |
| $500,000 | $2,709 | $2,720 |
| $600,000 | $3,251 | $3,264 |
Monthly P&I at 4.29%, 25-year amortization. Same engine as the form below.
Frequently asked questions
How does Canadian mortgage interest compounding work?
By law, fixed-rate mortgage interest compounds semi-annually, not monthly. The effective monthly rate is (1 + annual/2)^(1/6) − 1. That is why a Canadian 4.29% payment differs from a U.S.-style monthly-compounded loan at the same nominal rate.
What is the mortgage stress test?
OSFI requires most new mortgages to qualify at the higher of contract rate + 2% or 5.25%. Straight switches at renewal (same amount and amortization) have been exempt since November 2024; new purchases and most refinances still re-qualify.
When can I use a 30-year amortization on an insured mortgage?
Since December 15, 2024, insured mortgages may amortize over 30 years if you are a first-time home buyer or the property is new construction. A 0.20 percentage point CMHC premium surcharge applies.
Why is my lender's payment a dollar or two different from this calculator?
Our payment matches the semi-annual compounding formula Canadian lenders are required to use, to the cent. Small differences (usually under a few dollars a month) come from your lender's payment-setting context, not the math: the payment is usually fixed when the mortgage funds or renews — based on the balance, exact remaining amortization, and any interest adjustment on that date — and is not recalculated as the balance amortizes down. If you enter today's balance with a round 25-year amortization, the lender's slightly different starting point explains the gap. A slightly higher lender payment simply pays the loan off marginally faster.
Is my data stored?
Calculations run in your browser. Saved scenarios (when enabled) stay in local storage on your device. We do not need an account for the core calculator tools.
Related Tools & Resources
Affordability Calculator
Find your maximum mortgage based on income and debts.
Stress Test Calculator
OSFI qualifying rate: contract + 2% or 5.25%.
CMHC Insurance Calculator
Premium by down-payment band, including 30-year surcharge.
Closing Costs Calculator
Estimate land transfer tax, legal fees, and more by province.