How Canadian mortgage payments work (2026)
Your payment depends on four things: the mortgage amount (price minus down payment, plus any insurance), the interest rate, the amortization (how many years to pay it off), and how often you pay. This calculator gets two Canada-specific details right that many tools miss.
Semi-annual compounding
By law, Canadian fixed-rate mortgages compound semi-annually, not monthly. That makes the effective rate slightly lower than a naïve monthly calculation, so a U.S.-style calculator will overstate your Canadian payment. We use the correct semi-annual basis.
CMHC mortgage insurance
If your down payment is under 20%, you need mortgage default insurance (CMHC, Sagen, or Canada Guaranty). The premium depends on your down payment size:
| Down payment | Premium (of mortgage) |
|---|---|
| 5% – 9.99% | 4.00% |
| 10% – 14.99% | 3.10% |
| 15% – 19.99% | 2.80% |
| 20% or more | None |
The premium is added to your mortgage, so you pay interest on it too. The minimum down payment is 5% on the first $500,000 and 10% on the portion above $500,000.
Accelerated payments pay off faster
An accelerated bi-weekly payment is simply half your monthly payment, paid every two weeks. Because there are 26 bi-weekly periods (the equivalent of 13 monthly payments a year), you make one extra payment annually — shaving years off your amortization and saving thousands in interest. Try it with the frequency toggle.
Frequently asked questions
How much mortgage can I afford?
Enter the home price and your down payment to see the payment. As a rule of thumb, lenders want your housing costs under about 32% of gross income. Adjust the price until the payment fits your budget.
Does this include property tax and insurance?
No — it shows the principal-and-interest mortgage payment. Property tax, home insurance, and condo fees are extra and vary by location.
Why is my payment different from another calculator?
Most likely compounding. Canadian mortgages compound semi-annually; calculators built for the U.S. use monthly compounding and will show a slightly higher payment.