Free canadian mortgage calculator
Calculate Canadian mortgage payments using the OSFI semi-annual compounding standard — enter principal, rate, and amortization, updated live, as you type.
On this page10 sections
Taxes, insurance & fees
All results are estimates. How accurate is this?
Your loan over time
Full Amortization Schedule
Your mortgage payment is $2,447.62 per month for a $400,000 home.
| Home price | $400,000.00 |
| Down payment | $80,000.00 (20%) |
| Loan amount | $320,000.00 |
| Interest rate | 6.5% |
| Loan term | 30 years (360 payments) |
| Principal & interest | $2,022.62 |
| Property tax (mo) | $300.00 |
| Home insurance (mo) | $125.00 |
| Total monthly payment | $2,447.62 |
| Total of 360 payments | $728,142.36 |
| Total interest paid | $408,142.36 |
How does the term affect my payment?
How does the down payment affect my payment?
Payment schedule
| # | Date | Payment | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | Jul 2026 | $2,022.62 | $289.28 | $1,733.33 | $319,710.72 |
| 2 | Aug 2026 | $2,022.62 | $290.85 | $1,731.77 | $319,419.86 |
| 3 | Sep 2026 | $2,022.62 | $292.43 | $1,730.19 | $319,127.44 |
| 4 | Oct 2026 | $2,022.62 | $294.01 | $1,728.61 | $318,833.43 |
| 5 | Nov 2026 | $2,022.62 | $295.60 | $1,727.01 | $318,537.82 |
| 6 | Dec 2026 | $2,022.62 | $297.20 | $1,725.41 | $318,240.62 |
| 7 | Jan 2027 | $2,022.62 | $298.81 | $1,723.80 | $317,941.80 |
| 8 | Feb 2027 | $2,022.62 | $300.43 | $1,722.18 | $317,641.37 |
| 9 | Mar 2027 | $2,022.62 | $302.06 | $1,720.56 | $317,339.31 |
| 10 | Apr 2027 | $2,022.62 | $303.70 | $1,718.92 | $317,035.62 |
| 11 | May 2027 | $2,022.62 | $305.34 | $1,717.28 | $316,730.27 |
| 12 | Jun 2027 | $2,022.62 | $307.00 | $1,715.62 | $316,423.28 |
Results are estimates. Consult a professional.
How the Canadian mortgage calculator works
Canadian mortgages compound interest semi-annually (twice per year) rather than monthly, as required by the Interest Act of Canada and enforced by the Office of the Superintendent of Financial Institutions (OSFI). This differs from U.S. mortgages, which compound monthly. The posted annual rate must be converted to an equivalent monthly rate before the standard amortization formula is applied.
Canadian mortgage terms are typically 1–5 years, after which borrowers renew at the then-current rate. The amortization period (commonly 25 years, maximum 30 years for insured mortgages as of August 2024) is separate from the term. This renewal structure means most Canadians renegotiate their rate multiple times over the life of their mortgage.
Bank of Canada — How mortgage interest is calculated in Canada.Worked example: $500,000 CAD at 5%, 25-year amortization
Borrower takes a $500,000 CAD mortgage at a posted rate of 5.0% APR, amortized over 25 years (300 months). We calculate the effective monthly rate using Canadian semi-annual compounding and compare it to the U.S. monthly-compounding result.
Canadian vs U.S. monthly payment comparison at 5% and 6% APR
All figures in Canadian dollars. Canadian method uses semi-annual compounding per OSFI; U.S. method uses monthly compounding. Amortization: 25 years (300 months), the most common in Canada.
| Loan (CAD) | APR | CA Payment (semi-annual) | U.S. Payment (monthly) | Monthly Difference |
|---|---|---|---|---|
| $400,000 | 5.0% | $2,327 | $2,338 | $11 |
| $400,000 | 6.0% | $2,561 | $2,577 | $16 |
| $500,000 | 5.0% | $2,908 | $2,922 | $14 |
| $500,000 | 6.0% | $3,201 | $3,222 | $21 |
| $600,000 | 5.0% | $3,490 | $3,507 | $17 |
| $600,000 | 6.0% | $3,841 | $3,866 | $25 |
Source: OSFI mortgage compounding rule; Bank of Canada interest rate methodology.
Tips for Canadian mortgage borrowers
Canada's mortgage market has unique features compared to the United States. These five tips help borrowers navigate the renewal cycle, stress test requirements, and payment options.
- Understand the stress test — As of 2024, all federally regulated lenders must qualify borrowers at the greater of 5.25% or the contract rate + 2%. If you're approved at 5%, the lender checks you can afford payments at 7%. Plan for this when assessing your budget.
- Negotiate at renewal — Your lender is not obligated to offer you the best rate at renewal. Shop competing lenders 4–6 months before your term ends. Switching lenders at renewal typically has no penalty, but check your mortgage contract.
- Use accelerated biweekly payments — Canadian lenders commonly offer 'accelerated biweekly' payments, which divide the monthly payment by two but pay it every two weeks (26 times/year). This is equivalent to making one extra monthly payment per year and typically saves 3–4 years on a 25-year amortization.
- Insured vs conventional mortgages — Down payments below 20% require CMHC, Sagen, or Canada Guaranty mortgage insurance. The premium ranges from 0.60%–4.00% of the loan, added to the principal. Insured mortgages carry a maximum 25-year amortization; uninsured allow up to 30 years.
- Prepayment privileges vary by lender — Most Canadian mortgages allow 10–20% lump-sum prepayments per year and 10–20% payment increases without penalty. Exceeding these limits triggers an interest rate differential (IRD) penalty, which can be very large for fixed-rate mortgages.
Accuracy and limitations
This calculator uses the semi-annual compounding method required under the Canadian Interest Act. It does not account for CMHC mortgage insurance premiums, provincial land transfer taxes, property taxes, home insurance, or other closing costs. Term vs amortization is not modeled — rates at renewal will depend on market conditions at that time, which are unknown. All figures are estimates in Canadian dollars; always obtain a formal quote from a licensed mortgage broker or federally regulated lender.
Not financial advice — consult a mortgage professional for your specific situation.
Canadian mortgage terms defined
About this Canadian mortgage calculator
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