Canadian Mortgage Payment Calculator (2026)
Last updated
Calculates the periodic payment for a Canadian mortgage given home price, down payment, interest rate, amortization, and payment frequency. Uses the federally legislated semi-annual compounding convention (Interest Act of Canada).
This calculator computes the periodic payment on a Canadian mortgage from four inputs: home price, down payment, interest rate, and amortization period. It applies the standard amortization formula with one Canada-specific adjustment: interest compounds semi-annually rather than monthly, per Section 6 of the federal Interest Act.
The result includes the payment per period, the monthly equivalent for comparison, and the total interest paid over the full amortization. An amortization chart shows how each year's payments split between principal and interest — early years are interest-heavy, later years pay down the loan faster as the balance shrinks.
How this calculator works
Step 1 — Convert annual rate to per-period rate. Canadian mortgages compound semi-annually:
per-period rate = (1 + (annual rate ÷ 2))^(2 ÷ payments-per-year) − 1
Step 2 — Compute payment using the standard amortization formula.
payment = principal × r(1+r)^n / [(1+r)^n − 1]
where r is the per-period rate from Step 1 and
n is the total number of payments (years × payments-per-year).
Source: Interest Act of Canada, RSC 1985, c. I-15, s. 6
(semi-annual compounding requirement);
FCAC mortgage calculator
(cross-check reference).
Worked example
A $750,000 home with a $150,000 down payment ($600,000 loan) at 4.99% annual rate, 25-year amortization, monthly payments:
- Per-period (monthly) rate:
0.4116%(semi-annual compounded equivalent of 4.99% annual) - Total payments: 25 × 12 =
300 - Monthly payment:
$3,486.22 - Total paid over amortization:
$1,045,864.52 - Total interest:
$445,864.52
Switching to bi-weekly accelerated payments ($1,743.11 every two weeks = monthly payment ÷ 2) at the same rate pays the loan off in approximately 21.5 years instead of 25, reducing total interest by approximately $71,467. The trade-off: each two-week period costs the borrower the same as half a monthly payment, so accelerated schedules require sustained cash flow that aligns with the borrower's pay schedule.
Frequently asked questions
How is a Canadian mortgage payment calculated?
The standard amortization formula is payment = P × r(1+r)^n / [(1+r)^n − 1], where P is the loan principal, r is the per-period interest rate, and n is the total number of payments. Canadian mortgages compound semi-annually rather than monthly (per the Interest Act of Canada), so the per-period rate is derived as: semi-annual rate = annual / 2; effective annual = (1 + semi-annual)^2 − 1; per-period rate = (1 + effective annual)^(1/payments-per-year) − 1.
Why does Canadian mortgage interest compound semi-annually?
It is a federal legal requirement. Section 6 of the Interest Act of Canada (RSC 1985, c. I-15) limits the compounding frequency that can be charged on a mortgage. US mortgages compound monthly, which produces slightly higher effective rates. A 5% Canadian mortgage and a 5% US mortgage are not the same loan.
What does this calculator NOT include?
Property tax, home insurance, condo fees, utilities, CMHC mortgage insurance premium, provincial PST on the CMHC premium (where applicable in QC, ON, SK), land transfer tax, legal fees, and any lender-specific fees or rate discounts. This calculator computes only the loan amortization portion (principal + interest). For affordability including the other components, see the Mortgage Affordability calculator. For CMHC premium, see the CMHC Insurance calculator.
What is the difference between bi-weekly and bi-weekly accelerated?
Bi-weekly (26 payments per year) is the monthly payment ÷ 2, paid every two weeks — total annual cost equals 12 monthly payments. Bi-weekly accelerated is also 26 payments per year, but each payment is the monthly payment ÷ 2 directly — total annual cost equals 13 monthly payments. The accelerated version pays the loan off faster, typically shaving years off the amortization. Weekly accelerated works the same way (52 payments × monthly ÷ 4 ≈ 13 monthly equivalents).
Is the rate I see at the bank the same as what I should enter here?
Yes. Posted Canadian mortgage rates are nominal annual rates compounded semi-annually. The calculator handles the compounding conversion internally. If your contract rate is 5.29%, enter 5.29.
What happens to the calculation if I change my down payment?
Increasing the down payment reduces the loan principal, which proportionally reduces every periodic payment and the total interest paid over the amortization. If the down payment crosses the 20% threshold, the loan moves from 'high-ratio' (CMHC mortgage insurance required) to 'low-ratio' (no insurance required). This calculator does not model the CMHC premium itself; the CMHC Insurance calculator does.
What is the maximum amortization for a Canadian mortgage in 2026?
Per OSFI and CMHC rules effective December 15, 2024: insured high-ratio mortgages are capped at 25 years for most buyers, with a 30-year exception for first-time buyers and for any buyer purchasing a newly built home. Insurable low-ratio mortgages remain capped at 25 years. Uninsured mortgages can extend further at lender discretion (typically 30–35 years). The calculator allows up to 30 years.
Sources
Every figure on this page traces back to a primary Canadian authority. See the complete sources index for the master list.
- Bank of Canada — Interest rates Bank of Canada · last verified
- OSFI Guideline B-20 (Residential Mortgage Underwriting) Office of the Superintendent of Financial Institutions · last verified
- CMHC Mortgage Loan Insurance Cost Canada Mortgage and Housing Corporation · last verified
Verified against RBC, TD, and Ratehub mortgage payment calculators on .
Important
This calculator is for informational purposes only. It is not financial, tax, mortgage, or legal advice. Tax rates, mortgage rules, and contribution limits change. Always verify current rules with the relevant Canadian authority and consult a licensed professional before making financial decisions.