How Canadian mortgage payments work (2026)
Your payment depends on four things: the mortgage amount (price minus down payment, plus any insurance), the interest rate, the amortization (how many years to pay it off), and how often you pay. This calculator gets two Canada-specific details right that many tools miss.
Semi-annual compounding
By law, Canadian fixed-rate mortgages compound semi-annually, not monthly. That makes the effective rate slightly lower than a naïve monthly calculation, so a U.S.-style calculator will overstate your Canadian payment. We use the correct semi-annual basis.
CMHC mortgage insurance
If your down payment is under 20%, you need mortgage default insurance (CMHC, Sagen, or Canada Guaranty). The premium depends on your down payment size:
| Down payment | Premium (of mortgage) |
|---|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% or more | None |
The premium is added to your mortgage, so you pay interest on it too. The minimum down payment is 5% on the first $500,000 and 10% on the portion above $500,000.
Accelerated payments pay off faster
An accelerated bi-weekly payment is simply half your monthly payment, paid every two weeks. Because there are 26 bi-weekly periods (the equivalent of 13 monthly payments a year), you make one extra payment annually — shaving years off your amortization and saving thousands in interest. Try it with the frequency toggle.
Worked example: a $600,000 home with 15% down
The calculator's starting scenario is a $600,000 purchase with $90,000 down (15%) at 4.79% over 25 years, paid monthly.
- Minimum down payment: 5% of $500,000 plus 10% of the remaining $100,000 = $35,000. The $90,000 down clears it.
- Base mortgage: $600,000 − $90,000 = $510,000.
- Insurance: 15% down falls in the 2.80% tier, adding $14,280, so you borrow $524,280.
- Payment: $2,986.87 a month, with about $371,780 in interest over 25 years at that rate.
A calculator that wrongly compounds monthly would show about $3,001 for the same loan. That's $14 a month too high, enough to throw off an affordability check.
How the rate changes your payment
Same $524,280 insured mortgage, 25-year amortization, monthly payments. The rates are illustrative, not offers:
| Rate | Monthly payment | Interest over 25 years |
|---|---|---|
| 3.99% | $2,754.98 | $302,213 |
| 4.49% | $2,898.83 | $345,370 |
| 4.79% | $2,986.87 | $371,780 |
| 5.29% | $3,136.36 | $416,629 |
| 5.79% | $3,289.21 | $462,484 |
| 6.29% | $3,445.28 | $509,304 |
Each half-point adds roughly $145–$160 a month on this loan. That's why a renewal at a higher rate can strain a budget that was comfortable five years earlier. Most Canadian terms are five years or less, while the amortization runs 25 or 30, so you'll likely renew several times at whatever rates apply then.
Down payment size: insurance vs. interest
Same $600,000 home at 4.79% over 25 years:
| Down payment | Insurance | Mortgage | Monthly |
|---|---|---|---|
| $30,000 (5%) | 4.00% | $592,800 | $3,377.23 |
| $60,000 (10%) | 3.10% | $556,740 | $3,171.79 |
| $90,000 (15%) | 2.80% | $524,280 | $2,986.87 |
| $120,000 (20%) | none | $480,000 | $2,734.60 |
Going from 5% to 20% down lowers the payment by about $640 a month. Part of that comes from borrowing less. The rest comes from skipping the premium, which you would otherwise pay interest on for the full amortization.
30-year amortization
Since December 2024, first-time buyers and buyers of newly built homes can take an insured mortgage with a 30-year amortization. Insurers add a 0.20% premium surcharge for amortizations over 25 years, and this calculator applies it automatically when you enter more than 25 years with less than 20% down. In the example above, 30 years drops the payment to about $2,738 but raises total interest to roughly $460,000. That's about $88,000 more for $249 a month of breathing room. For the qualifying rate lenders use to approve you, see our mortgage stress test guide.
Frequently asked questions
How much mortgage can I afford?
Enter the home price and your down payment to see the payment. As a rule of thumb, lenders want your housing costs under about 32% of gross income. Adjust the price until the payment fits your budget.
Does this include property tax and insurance?
No — it shows the principal-and-interest mortgage payment. Property tax, home insurance, and condo fees are extra and vary by location.
Why is my payment different from another calculator?
Most likely compounding. Canadian mortgages compound semi-annually; calculators built for the U.S. use monthly compounding and will show a slightly higher payment.
Does a 30-year amortization cost more?
Yes. The payment is lower, but you pay interest for five extra years and insured borrowers pay a 0.20% higher insurance premium. On a $525,000 mortgage at 4.79%, total interest rises from about $372,000 to about $460,000.
Is the insurance premium paid upfront?
Usually not. The premium is added to the mortgage balance and repaid over the amortization, which is how this calculator treats it. Provincial sales tax on the premium in Ontario, Quebec and Saskatchewan, however, must be paid in cash at closing and is not included here.