Work out your real Canadian mortgage payment — with semi-annual compounding, CMHC insurance when your down payment is under 20%, and the stress test lenders actually apply.
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How Canadian mortgages work
Canadian mortgages compound interest semi-annually, not monthly the way US mortgages do. Your monthly rate is (1 + annual rate ÷ 2)^(2 ÷ 12) − 1, which is slightly lower than simply dividing the annual rate by 12 — so a payment copied from a US calculator will come out a little too high.
The minimum down payment is 5% on the first $500,000 of the price and 10% on any portion above that. Homes priced over $1.5 million need 20% down. If your down payment is under 20%, the mortgage must be insured (usually through CMHC), and the premium — 2.80% to 4.00% of the mortgage, depending on your loan-to-value ratio — is added to the amount you borrow. Insured mortgages are now available on purchases up to $1.5 million. If your down payment is below these minimums, this calculator will tell you the minimum required instead of giving you a payment. First-time buyers can save for that down payment in an FHSA, and the FHSA Calculator works out your 2026 contribution room.
The stress test is the affordability check federally regulated lenders must run: you have to qualify at the higher of your contract rate plus 2 percentage points and 5.25%. That qualifying rate is used to test affordability only — your actual payment is based on your contract rate.
Estimates only. This calculator is for planning — your lender’s actual payment, insurance premium and qualifying rate may differ, and the rules change. Confirm current CMHC premiums, minimum down payments and stress-test rules before you buy.
Related tools
Find out what you can borrow with the Mortgage Affordability Calculator, the tax on the purchase with the Land Transfer Tax Calculator, the cash you need on closing day with the Closing Costs Calculator, and whether renting or buying works out cheaper with the Rent vs Buy Calculator.