Payments, CMHC insurance, renewal balance and the stress test, the Canadian way.
Who this is for: Buying a home in Canada with less than 20% down.
$
$
10.0% · minimum $35,000
%
Payments and termMonthly · 5-year term
Every payment frequency, same mortgage
Accelerated schedules pay the mortgage off sooner because they add roughly one monthly payment a year.
Frequency
Payment
Total interest
Interest saved
Paid off in
Monthly
$3,081.41
$367,682
$0
25.0 years
Semi-monthly
$1,539.27
$366,825
$857
25.0 years
Bi-weekly
$1,420.77
$366,759
$923
25.0 years
Accelerated bi-weekly
$1,540.70
$311,921
$55,761
21.7 years
Weekly
$710.08
$366,364
$1,318
25.0 years
Accelerated weekly
$770.35
$311,295
$56,387
21.7 years
How the payment is worked out
1Loan before insurance$600,000 − $60,000 = $540,000 (90.0% of the price)
2CMHC premium added to the loan$540,000 × 3.10% = $16,740 → mortgage $556,740
3Semi-annual compounding → monthly rate(1 + 4.50% ÷ 2)^(2/12) − 1 = 0.37153% a monthEffective annual rate 4.5506%, slightly below what monthly compounding would give.
4Monthly payment = M × i ÷ (1 − (1 + i)^−n)$556,740 × 0.0037153 ÷ (1 − 1.0037153^−300) = $3,081.41
Year-by-year schedule
How each year's payments split between interest and the balance you owe.
Year
Paid
Principal
Interest
Balance
1
$36,977
$12,407
$24,570
$544,333
2
$36,977
$12,971
$24,006
$531,362
3
$36,977
$13,562
$23,415
$517,800
Calculated in your browser — the numbers you enter are never sent to our servers.
Estimate Canadian mortgage payments with fixed-rate interest compounded semi-annually, CMHC mortgage default insurance added when you put down less than 20%, the minimum down payment for your price, six payment frequencies including accelerated bi-weekly, your balance at renewal and the stress-test payment you must qualify at.
Best for: First-time buyers, Comparing payment frequencies, Renewal planning, Checking the minimum down payment
Updated September 2026 · Estimates only, not financial advice.
Why 4.5% costs $3,081 a month in Canada and $3,095 in the United States
Canada’s Interest Act requires a mortgage with blended payments of principal and interest to state its rate calculated yearly or half-yearly, not in advance. In practice, fixed-rate mortgages compound semi-annually, while most US mortgages compound monthly. Compounding less often makes the same quoted rate slightly cheaper.
i = (1 + j ÷ 2)^(1/6) − 1
To get a monthly rate, the calculator turns the annual rate into a half-yearly one and spreads it across six months: (1 + 0.045 ÷ 2)^(1/6) − 1, about 0.3715% a month. That is an effective annual rate of 4.5506%, against 4.5940% if 4.5% were compounded monthly. On the example’s $556,740 mortgage over 25 years the monthly payment is $3,081.41; compounded monthly it would be $3,094.54.
Many variable-rate mortgages compound monthly instead. Use the Variable rate toggle at the top of the calculator to switch conventions, and check your mortgage agreement: the compounding frequency is stated there, next to the rate.
With 10% down, a $16,740 CMHC premium is added to the mortgage
If your down payment is under 20% of the price, the mortgage must carry default insurance from CMHC or a private insurer. It protects the lender, not you, and the premium is a percentage of the loan set by the loan-to-value ratio. It is normally added to the mortgage, so you pay interest on it for the life of the loan.
In the example, 10% down on $600,000 leaves a $540,000 loan at 90% loan-to-value. The premium rate for that band is 3.10%, or $16,740, which brings the mortgage to $556,740. With 20% down there is no premium: the mortgage is $480,000, the monthly payment $2,656.67, and total interest over 25 years $317,001 instead of $367,682.
Choosing a 30-year amortization on an insured mortgage adds 0.20 to the premium rate. Ontario, Quebec and Saskatchewan also charge provincial sales tax on the premium; it is due in cash at closing and cannot be added to the mortgage, so budget for it separately.
80.01% to 85% loan-to-value — 2.80% of the loan
85.01% to 90% — 3.10%
90.01% to 95% — 4.00%
Amortization over 25 years — add 0.20%
The minimum down payment on $600,000 is $35,000, not $30,000
The minimum is tiered: 5% of the first $500,000 of the price and 10% of the part above it, up to $1.5 million. On $600,000 that is $25,000 plus $10,000, or $35,000 — 5.83% of the price, not a flat 5%. The down payment helper under the field shows the minimum for whatever price you enter.
At $1.5 million and above a home cannot be insured, so the down payment must be at least 20% of the whole price: $320,000 on $1.6 million. Since 15 December 2024 the insured limit has been $1.5 million, up from $1 million, which is what makes the 10% tier run as high as it does.
$400,000 — minimum $20,000
$750,000 — minimum $50,000
$1.2 million — minimum $95,000
$1.6 million — minimum $320,000 (20%, not insurable)
Accelerated bi-weekly payments cut this mortgage to about 21.7 years and save $55,761
Regular bi-weekly, semi-monthly and weekly payments are worked out so the mortgage still takes the full amortization; they only split the monthly cost into smaller pieces. Accelerated payments are different. An accelerated bi-weekly payment is half the monthly payment, paid 26 times a year — the equivalent of 13 monthly payments instead of 12.
On the example mortgage, accelerated bi-weekly payments of $1,540.70 pay it off in about 21.7 years instead of 25, and total interest falls from $367,682 to $311,921. Accelerated weekly payments of $770.35 do almost exactly the same. The comparison table under the calculator shows all six schedules for your own numbers.
After five years you will still owe $488,798 — the number your renewal is priced on
A Canadian mortgage has two time spans. The amortization is how long the whole loan takes to repay, commonly 25 years. The term is how long your rate and conditions are fixed, most often five years. At the end of each term you renew, usually at a new rate, on whatever balance is left.
In the example, the first five years of payments cost $184,885, of which $116,942 is interest, and the balance at renewal is $488,797.61. If rates are higher at renewal, the payment on that balance rises; the calculator’s year-by-year schedule shows the balance at the end of any term length you choose.
To borrow at 4.5% you must show you could pay $3,729 a month at 6.5%
Federally regulated lenders must qualify you at a higher rate than the one you will pay: the greater of 5.25% or your contract rate plus two percentage points. At a 4.5% rate the qualifying rate is 6.5%, and the payment on the example mortgage at that rate is $3,729.18 a month. Your income and debts have to support that payment, not the $3,081 you will actually pay.
Borrowers renewing an uninsured mortgage who switch to another lender without increasing the loan or the amortization have been exempt from the test since 21 November 2024. This calculator shows the qualifying payment only; lenders then apply debt-service ratios to your full finances.
Worked example
A $600,000 home with 10% down at a 4.5% five-year fixed rate over 25 years, paid monthly.
Worked example
Minimum down payment = $35,000
CMHC premium (3.10%) = $16,740
Mortgage amount = $556,740
Monthly payment = $3,081.41
Balance at renewal (year 5) = $488,797.61
Limitations
Provincial sales tax on the CMHC premium (Ontario, Quebec, Saskatchewan) and land transfer tax are not included.
The rate is held for the whole amortization; in reality it resets at every renewal.
Lender prepayment privileges and penalties are not modelled.
Frequently Asked Questions
Why do Canadian mortgages compound semi-annually?
The Interest Act requires a blended-payment mortgage to state its rate calculated yearly or half-yearly, not in advance, so fixed-rate mortgages quote semi-annual compounding. That makes the payment slightly lower than monthly compounding at the same rate.
What is the minimum down payment in Canada?
5% of the first $500,000 of the price and 10% of the part from $500,000 up to $1.5 million. Homes at $1.5 million or more cannot be insured, so they need at least 20% down.
How much is CMHC insurance?
It is a percentage of the loan set by the loan-to-value: 2.80% above 80% up to 85%, 3.10% up to 90% and 4.00% up to 95%, plus 0.20% if the amortization is longer than 25 years. The premium is usually added to the mortgage.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Results are estimates based on the figures you enter and standard formulas. Rates, fees, taxes, and lender terms vary and change over time, so confirm important numbers with your lender or a qualified professional. This is educational information, not financial advice.
Published a Canadian mortgage calculator split out of the US one, with fixed-rate interest compounded semi-annually under the Interest Act.
CMHC premiums by loan-to-value with the 30-year surcharge, the tiered minimum down payment and $1.5 million insured limit, six payment frequencies, the balance at renewal and the stress-test payment.
Added an automated formula suite checked against the CMHC premium table and closed-form payments.
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