Canadian Mortgage Calculator
Calculate Canadian mortgage payments with CMHC insurance, stress test qualification, and accelerated bi-weekly options.
Runs entirely in your browser. Nothing is sent to our servers.
About this tool
Estimates Canadian mortgage payments using the semi-annual compounding convention required by Canadian banking regulations (Interest Act, s. 6). Includes automatic CMHC mortgage default insurance for high-ratio mortgages (down payment less than 20%) and the federal stress test that most lenders apply.
CMHC mortgage default insurance
If your down payment is less than 20% of the home price, federal regulations require the mortgage to be insured. The premium is paid to CMHC (or another insurer) and added to the principal. Premiums by loan-to-value ratio (2026 rates):
- 65% LTV: 0.60%
- 65–75%: 1.70%
- 75–80%: 2.40%
- 80–85%: 2.80%
- 85–90%: 3.10%
- 90–95%: 4.00%
CMHC-insured mortgages have a maximum 25-year amortization. Conventional mortgages (20%+ down) can amortize up to 30 years.
Stress test
The B-20 stress test requires lenders to qualify federally-regulated mortgages at the higher of the contract rate plus 2% or the Bank of Canada minimum qualifying rate (~5.25% historically, may shift). The tool shows your qualifying rate and what your payment would be at that rate — useful for understanding your approval headroom.
Accelerated bi-weekly
An accelerated bi-weekly payment is your monthly payment divided by 2, paid 26 times per year. The result is roughly one extra monthly payment per year, which can knock years off your amortization. Regular bi-weekly is your annual monthly total divided by 26 — same total cost, just smoother cash flow.
Frequently asked questions
- Why is Canadian compounding different from American?
- Canadian closed-term fixed mortgages compound twice a year, by law. So a 6% nominal rate means 3% every six months, which works out to an effective annual rate of ~6.09%. American mortgages typically compound monthly, so 6% nominal means 0.5% per month — effective annual ~6.17%. The Canadian convention yields slightly smaller payments at the same nominal rate.
- Does CMHC insurance protect me as the buyer?
- No — it protects the lender. If you default, CMHC covers the lender's loss. You pay the premium but get no direct benefit. The "benefit" is qualifying for a mortgage with less than 20% down at all.
- Can I avoid the stress test?
- Federally-regulated lenders (the big banks, most credit unions) all apply it. Some provincially-regulated credit unions and private lenders aren't required to, but they'll usually apply something similar to manage their own risk.
- What about property tax and insurance?
- Not included here — this tool calculates only principal and interest. Many lenders add property tax and home insurance to your payment ("PITI" — principal, interest, taxes, insurance). Budget for these separately at roughly 1–1.5% of home value per year combined.
Last updated: May 17, 2026