Canada · CAD · Mortgage & qualification
Canada Mortgage Calculator
Calculate a Canadian purchase payment with CMHC, cash/financed premiums and regular payment frequencies.
Reference scope documented 2026-10-25: standard qualifying rate max(contract + 2 percentage points, 5.25%); purchase insurance cap below CAD 1.5 million; 30-year insured scenarios require confirmed eligibility. Enter current personal quotes; these rules do not establish approval. CMHC source · OSFI source.
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Educational estimate, not financial advice. Disclaimer · Methodology · Corrections.
How this estimate works
The periodic rate is (1 + annual nominal rate / 2)^(2 / payments per year) − 1 for semiannual compounding. P&I uses a standard amortizing-payment formula; at 0% it is principal / payments. Monthly budget equivalents use payment × annual frequency / 12.
Assumptions and limits
- Amounts and outputs are CAD. Enter actual contract terms and current quotes; no mortgage rate is inferred from a credit score or Bank of Canada policy rate.
- A constant-rate amortization beyond the current mortgage term is a planning projection. Rates may change at renewal; lender fees, eligibility, appraisal and contract rounding can differ.
- Standard owner-occupied 1–2 unit purchase with traditional cash down only. Minimum down is 5% of the first CAD 500,000 plus 10% above it below CAD 1.5 million; at CAD 1.5 million or more the model requires 20%.
- The high-ratio CMHC tiers are 2.8%, 3.1% and 4.0% at base LTV up to 85%, 90% and 95%. Amortization above 25 years adds 0.20 percentage points and requires confirmed first-time-buyer or new-build eligibility, up to 30 years.
- At least 20% cash down gives zero borrower-paid high-ratio premium in this model, which does not mean all lender insurance is absent. Provincial premium tax is entered separately and paid in cash.
References and further reading
Separate the purchase balance from the insured balance
A Canadian purchase estimate begins with price less cash down payment. Where the selected insured scenario applies, an insurance premium may then be financed or paid in cash. Those choices change different parts of the budget. A financed premium increases the debt earning interest; a cash premium increases money needed at closing. A premium tax entered in this model remains a separate cash item. The price, down payment and financed balance should therefore never be treated as interchangeable amounts.
The rate convention matters
Use the compounding convention stated in the mortgage disclosure. This tool can compare supported nominal-rate conventions rather than assuming that the same annual percentage always produces the same periodic interest. Its semiannual option converts the quoted nominal rate into the equivalent payment-period rate. Simply dividing that quote by the number of payments can give a different answer. The convention is a model input; a particular product's contract, including variable-rate treatment, controls the real account.
Regular frequency is different from accelerated repayment
A regular weekly or biweekly plan changes the number of payment periods. An accelerated plan can increase the annual amount actually paid. A smaller individual debit does not prove lower total cost unless the annual cash flow is compared. The separate payment-frequency tool is better for that decision. Check permitted prepayment privileges before treating an accelerated or extra-payment schedule as available without a charge. This purchase tool does not promise a lender will accept every payment arrangement.
Insurance calculations have a limited scope
The CMHC reference explains published premium categories and conditions; it is not a personalized insurance decision. Confirm eligibility for the amortization and purchase scenario selected. The model does not verify residency, employment, credit, property suitability or every insurer exception. If a required condition is uncertain, obtain the lender's breakdown rather than choosing a favorable checkbox. A larger deposit can change the insurance category, but its opportunity cost and the cash reserve left after closing also matter.
Compare against the mortgage commitment
Use the written commitment and insurance breakdown to reconcile principal, payment frequency, nominal rate and cash costs. The displayed payment excludes property taxes, heating and other household charges unless explicitly listed. Qualification calculations use their own assessment rate and debt-service definitions, so a purchase payment is not a qualification result. GDS/TDS and stress-test tools address those separate questions. Keep moving costs and emergency cash outside the deposit used to calculate principal.
Worked Canada example: Canada Mortgage Calculator
This is a hypothetical arithmetic example in CAD, not a current lender quote, market observation or borrower record. The same calculator model produces the figures below. Its input assumptions are shown so that you can reproduce or change the scenario.
| Assumed input | Illustration value |
|---|---|
| Purchase price (CAD) | 700,000 |
| Cash down payment (CAD) | 70,000 |
| Amortization remaining (years) | 25 |
| 30-year insured first-buyer/new-build eligibility confirmed? | No / not confirmed |
| Finance the CMHC premium? | Yes — add to principal |
| Applicable provincial premium tax (%) | 0 |
| Contract annual rate (%) | 3.99 |
| Contract compounding | Semiannual — typical Canadian fixed-rate convention |
| Payment frequency | Monthly |
| Calculated measure | Result |
|---|---|
| Scheduled principal & interest per payment | CA$3,413.14 |
| Payments per year | 12 |
| Monthly equivalent P&I budget | CA$3,413.14 |
| Base purchase loan | CA$630,000.00 |
| CMHC premium | CA$19,530.00 |
| Principal after selected premium treatment | CA$649,530.00 |
Amounts use unrounded intermediate arithmetic and are rounded only for display. Selecting different costs, rates, payment dates or terms changes the result; no illustration value is prefilled into your personal financial fields.
Questions about this Canada mortgage estimate
Why can a Canadian quote differ from a simple annual-rate-divided-by-twelve calculation?
The nominal compounding convention can differ. Select the convention in the disclosure and match the payment frequency. Also compare the same financed insurance premium; a difference in starting principal can be larger than the compounding difference.
Can the CMHC premium tax be financed by this model?
It is kept as a cash item separately from a financed insurance premium. Enter the applicable premium-tax rate only after confirming it. The result is a budget under those inputs, not confirmation of provincial treatment or insurer acceptance.
Does a purchase payment show whether I pass the Canadian stress test?
No. Qualification can use a different rate, other housing costs and counted debts. Run the qualification tool with the lender's income and debt definitions, and confirm which insured or uninsured framework and any exception apply.