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Canadian Mortgage Calculator
Canadian Mortgage Calculator
Calculate semi-annual compounded interest repayments and Land Transfer Tax
$0
Monthly Payment
Semi-annual compounding applied
Total Interest
$0
Land Transfer Tax
$0
CMHC Premium
$0
Equity vs Balance
About the Canadian Mortgage Calculator
Estimate mortgage payments for a Canadian home, with choices for amortisation period and payment frequency.
How to use the Canadian Mortgage Calculator
- Enter the Property Price ($), Down Payment ($) and Interest Rate (%).
- Choose the Amortization (Yrs) and Payment Frequency: monthly, bi-weekly or weekly, and select your Province.
- Press Calculate Repayments.
Formula and method
The payment uses the standard loan formula on the mortgage amount. Canadian fixed-rate mortgages are traditionally quoted with semi-annual compounding, so a lender's exact payment can differ slightly from a simple monthly calculation.
When to use the Canadian Mortgage Calculator
- Estimating payments on a fixed-rate Canadian mortgage.
- Testing different amortisation periods and payment frequencies.
- Working out the impact of mortgage default insurance on a small down payment.
Common mistakes to avoid
- Assuming interest compounds monthly. Fixed-rate mortgages in Canada are usually compounded semi-annually.
- Forgetting insurance premiums when the down payment is under 20%.
- Ignoring the renewal. The term is often five years, but the amortisation is much longer.
Tips
- A down payment below 20% requires mortgage default insurance, which is added to the loan.
- Accelerated bi-weekly payments make the equivalent of one extra monthly payment a year and can shorten the amortisation.
- Budget for property tax, closing costs and land transfer tax, which vary by province.
Frequently Asked Questions
The amortisation is the total time to repay the loan (often 25 years). The term is the length of your current rate agreement (often 1 to 5 years), after which you renew.
It is 5% on the first part of the price, with more required above that. Under 20% down needs mortgage default insurance.
The term is how long the current rate and lender agreement last, often 5 years. The amortisation is the total time to repay the loan, often 25 years.