Canadian Mortgage Calculator

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.