Canadian Mortgage Payment Calculator

Common questions about Canadian mortgage payments

• What is semi-annual compounding and why does Canada use it?

  Section 6 of the Interest Act (RSC 1985, c. I-15) requires a mortgage with blended payments to state its rate calculated yearly or half-yearly, not in advance. Lenders therefore quote fixed rates compounded semi-annually. The periodic monthly or bi-weekly rate is derived from that figure, so monthly payments compute against a slightly lower periodic rate than a US-style monthly-compounded mortgage at the same nominal rate. Source: Interest Act, section 6.
• What's the difference between monthly, bi-weekly, and accelerated bi-weekly?

  Monthly = 12 payments per year. Bi-weekly = 26 payments per year, each equal to (monthly × 12) ÷ 26, same total annual payment, just split differently. Accelerated bi-weekly = 26 payments per year, each equal to (monthly ÷ 2), that's 13 monthly-equivalent payments per year instead of 12, which shortens the amortization by about 3 to 4 years on a 25-year mortgage (about 3.7 years at 5.5%).
• Can I get a 30-year amortization?

  Effective Dec 15, 2024, 30-year amortization on an insured mortgage (less than 20% down) is restricted to first-time buyers OR any buyer of newly-constructed housing. Conventional buyers (20%+ down) can amortize over 30 years regardless of status, since the deal isn't insured. Some credit unions also offer 35-year amortization on conventional mortgages, use the Custom amortization option to model that scenario.
• What happens to my payment at renewal?

  Canadian mortgages typically have terms of 1–5 years; at the end of the term, the rate resets to whatever the market is at that point. The year-5 snapshot above shows your principal remaining at renewal, that's the amount you'll re-amortize at the new rate. Source: your mortgage contract and your lender’s renewal letter.
• Why does my lender quote a different rate from the one I qualify at?

  Two different rates. The contract rate is what you pay month to month. The qualifying rate (the OSFI B-20 stress test) is what the lender uses to size your pre-approval, the greater of (contract rate + 2 percentage points) or 5.25%, whichever is higher. To see what mortgage size that qualifies for under your income, use the affordability calculator.
• Is this a mortgage pre-approval?

  No. This calculator estimates the periodic payment on a known principal at a known rate. A pre-approval verifies your income, credit, down-payment source, and ability to qualify under your lender's specific rules (which may differ slightly from the standard OSFI / CMHC convention). Talk to a licensed mortgage broker for an actual approval.