Canadian mortgage payment calculator (semi-annual compounding)
$500,000 at 4.29% over 25 years with semi-annual compounding is $2,709.29 a month. Canadian closed fixed-rate mortgages are normally compounded semi-annually, not monthly like a US calculator, which overstates the payment. That is standard practice: the Interest Act only requires the rate to be stated yearly or half-yearly, not in advance. 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. 4.29% is this site’s planning assumption dated 12 September 2026 (calculator default; not a quoted lender rate). Rules verified 2026-07-13. Educational only — not a pre-approval. Note (US-style monthly compounding method): rate ÷ 12 on the same $500,000 / 25-year inputs gives $2,719.90 a month. The AnswerFirst table’s whole-dollar US column ($2,720) is that method rounded.
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?
Canadian fixed-rate mortgage interest is normally compounded semi-annually, not monthly; that is standard practice, not a legal requirement. 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?
Federally regulated lenders are expected to qualify most new uninsured mortgages under the mortgage stress test (OSFI Guideline B-20), at the higher of contract rate + 2% or 5.25%. Stand-alone uninsured straight switches between federally regulated lenders (same amount and amortization) have been exempt since 21 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 standard semi-annual compounding formula Canadian lenders use for fixed-rate mortgages, 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.
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