Mortgage Payment Calculator Canada — Monthly Payments & Amortization
Calculate your exact monthly mortgage payment for Canadian properties. Enter purchase price, down payment, and rate — our calculator handles semi-annual compounding automatically. Includes CMHC insurance, full amortization schedule, and extra-payment savings. Free.
Canada's mortgage math differs from the US: federally regulated lenders must use semi-annual compounding, so the effective monthly rate is slightly lower than simply dividing by 12. Enter your purchase price, down payment, interest rate, and amortization period to see your exact monthly payment, total interest paid, and how extra prepayments shrink your debt faster. Stress-test at 5.25% or your contract rate + 2% to confirm you'd qualify under OSFI B-20 rules.
Inputs
Results
Monthly Payment
$2,326
Total Interest Paid
$297,926
Total Cost of Loan
$697,926
Mortgage Amount
$400,000
Understanding This Calculator
Learn how a monthly mortgage payment is actually computed, why Canadian and US loans differ, and how to judge whether a payment fits your budget.
How the math works
The payment comes from the standard annuity formula: Payment = Loan × r(1+r)^n ÷ ((1+r)^n − 1), where r is the effective monthly rate and n is the number of monthly payments (amortization years × 12).
The key Canada/US difference is how r is derived. Canadian fixed-rate mortgages compound semi-annually by law, so the effective monthly rate is (1 + annual rate ÷ 2)^(1/6) − 1 — slightly lower than the US convention of simply dividing the annual rate by 12 (monthly compounding). The calculator applies whichever convention you select.
Worked example
Take the defaults: a $500,000 purchase with $100,000 down leaves a $400,000 mortgage at 5% over 25 years with semi-annual compounding.
- Effective monthly rate = (1.025)^(1/6) − 1 ≈ 0.4124%
- Number of payments = 25 × 12 = 300
- Payment ≈ 400,000 × 0.004124 × (1.004124)^300 ÷ ((1.004124)^300 − 1) ≈ $2,326 per month
Over 25 years that is roughly $698,000 in total payments — about $298,000 of it interest. With US-style monthly compounding the same loan costs slightly more, about $2,338 per month.
How to read the result
The payment shown is principal and interest only — add property tax, heating, insurance, and any condo fees to get your true monthly housing cost. Two sanity checks:
- Canadian lenders generally want housing costs within roughly 32–39% of gross income (GDS) and all debts within 44% (TDS); US lenders use similar DTI limits.
- Canadian borrowers must also pass the stress test: qualify at the higher of 5.25% or your contract rate + 2%.
If the payment is uncomfortable at the stress-test rate, the price is likely too high for your income. A lender or mortgage broker can confirm your actual qualification.
Common mistakes
- Comparing a Canadian quote to a US calculator — the compounding difference changes the payment, so always match the convention to the country.
- Forgetting CMHC insurance: under 20% down in Canada adds a 2.8–4% premium to the loan balance, raising the payment.
- Stretching amortization to 30 years to lower the payment without noticing the extra total interest — often tens of thousands of dollars.
- Ignoring taxes, insurance, and maintenance when judging affordability.