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Canadian Mortgage

Canadian mortgage calculator with legally-correct semi-annual compounding, CMHC insurance premiums, and accelerated bi-weekly payment comparison.

✓ Tested formula & cited sources Checked against independent sources · Oct 18, 2026 Private: runs in your browser

The purchase price of the home.

Min 5% on first $500K, 10% on portion above (homes of $1.5M or more need 20%). Under 20% triggers CMHC.

Select your province for a dynamic Land Transfer Tax estimate. Alberta has none.

Some provinces offer LTT rebates. Select "Yes" to apply.

Total time to repay the mortgage. Insured mortgages (<20% down) are capped at 25 years, or 30 for first-time buyers and new builds.

Canadian fixed-rate mortgages are compounded semi-annually by law.

How often you make payments. Accelerated Bi-Weekly saves the most interest over time.

B-20 stress test: qualify at greater of contract rate + 2% OR 5.25%. This affects max affordable price.

Results

Monthly Payment

$5,573.73

Total Mortgage Principal
$695,925.00
CMHC Premium (3.10% on 90.0% LTV)
+$20,925.00 added to principal
Effective Annual Rate (semi-annual compounding)
5.3189%
Total Interest Paid Over Life of Loan
$307,345.83
Total Cost (Principal + Interest)
$1,003,270.83
Actual Time to Payoff
15.00 years
Land Transfer Tax (Alberta)
No provincial LTT ($0) — land titles registration fees apply separately

The formula

Effective Annual = (1 + r/2)² − 1 | Periodic Rate = (1 + Effective Annual)^(1/m) − 1 | Stress Test Rate = max(Contract + 2%, 5.25%)

r
Stated Annual Rate
Effective Annual
Effective Annual Rate
m
Payments Per Year
CMHC
CMHC Insurance
LTV
Loan-to-Value
Stress Test
Stress Test Rate
LTT
Land Transfer Tax

Worked example — Property Price (Asking Price) 750000, Down Payment 75000, Annual Interest Rate (Fixed) 5.25 %

Monthly Payment = $5,573.73

Full explanation ↓

How Canadian Mortgage Works

Effective Annual = (1 + r/2)² − 1 | Periodic Rate = (1 + Effective Annual)^(1/m) − 1 | Stress Test Rate = max(Contract + 2%, 5.25%)

Canadian fixed-rate mortgages are compounded semi-annually not in advance by law (Interest Act, Section 6). This differs fundamentally from US mortgages (monthly compounding), making US calculators inaccurate for Canadian mortgages. The B-20 stress test determines how much you can borrow (you qualify at the higher rate but pay the lower contract rate). Land Transfer Tax is a provincial/municipal progressive-bracket closing cost.

r
Stated Annual Rate — The advertised mortgage rate (e.g. 5.25%).
Effective Annual
Effective Annual Rate — True annualized rate after semi-annual compounding.
m
Payments Per Year — Monthly = 12, semi-monthly = 24, bi-weekly = 26.
CMHC
CMHC Insurance — Default insurance for <20% down (0.6%–4.0% of loan).
LTV
Loan-to-Value — Loan ÷ Property. >80% = insured mortgage.
Stress Test
Stress Test Rate — Qualifying rate = max(Contract + 2%, 5.25%).
LTT
Land Transfer Tax — Progressive provincial/municipal tax paid at closing.
Canadian mortgages are compounded semi-annually (not monthly like the US), require a stress test to qualify, and may include costly Land Transfer Tax at closing

Understanding the Result

Accelerated bi-weekly payments are the single biggest "free win" in Canadian mortgages. By paying half your monthly amount every two weeks, you make 26 half-payments = 13 full monthly payments per year — one extra principal-only payment. On a $500K mortgage at 5.25% over 25 years, this saves about 3.6 years and roughly $66,000 in interest. The stress test determines how much you can borrow, not what you pay. Land Transfer Tax is a major closing cost (e.g., about $12,475 in Ontario on an $800K home) that first-time buyers often underestimate.

How to Use

  1. Enter the property price and your down payment.
  2. Select your province for a dynamic Land Transfer Tax estimate.
  3. Pick an amortization period (max 25 years if <20% down).
  4. Enter your quoted fixed interest rate.
  5. Choose a payment frequency — compare Monthly vs Accelerated Bi-Weekly to see savings.
  6. Toggle the Mortgage Stress Test to see your qualifying rate and max affordable price.
  7. Review the Land Transfer Tax breakdown — a significant closing cost.

Frequently Asked Questions

Why are Canadian mortgages compounded semi-annually?
Section 6 of the federal Interest Act of Canada requires mortgage rates to be compounded no more than semi-annually. A quoted 5% Canadian rate is cheaper than a 5% US rate (monthly compounding) because the effective annual rate is lower. Always use a Canadian-specific calculator.
How does the Mortgage Stress Test work?
B-20 requires lenders to qualify borrowers at max(contract rate + 2%, 5.25%). If your rate is 4.5%, qualifying rate = 6.5%. You pay 4.5% but must prove you could afford 6.5%. This reduces your max affordable price. Toggle the Stress Test on to see this.
What is Land Transfer Tax and how much is it?
LTT is a provincial (sometimes municipal) tax on property purchase, calculated with progressive brackets. On an $800K Ontario home: $12,475 provincial + up to $12,475 Toronto municipal = about $25K. First-time buyers in Ontario get up to $4,000 back (plus up to $4,475 in Toronto), and in BC up to $8,000 on homes up to $835,000. Select your province for a precise estimate.
Accelerated bi-weekly or regular bi-weekly?
Accelerated. Regular divides annual total by 26 (same total cost). Accelerated is half your monthly payment every 2 weeks = 13 monthly payments/year. The extra payment goes 100% to principal, saving roughly 3.6 years and $66,000 in interest on a $500K, 25-year mortgage at 5.25%.
When is CMHC insurance required?
When down payment < 20%. Premiums range from 2.8% (15–19.99% down) to 4.0% (5–9.99% down), plus a 0.20% surcharge when the amortization is longer than 25 years. The premium is added to the mortgage principal — no lump-sum payment required. CMHC protects the lender, not you.

Common Uses

  • •Calculate monthly mortgage payments for a Canadian home including semi-annual compounding, land transfer tax, and provincial rules.
  • •Compare standard monthly payments versus accelerated bi-weekly payments to see how much interest and time you save over the amortization.
  • •Determine your maximum affordable home price under the Canadian mortgage stress test using the contract rate plus qualifying rate.

Sources

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Cite this calculator

TheCalcUniverse. "Canadian Mortgage Calculator — Semi-Annual & CMHC." TheCalcUniverse, 2026, https://thecalcuniverse.com/finance/canadian-mortgage-calculator/. Accessed October 25, 2026.

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