Canada Mortgage Payment Calculator
Canada Mortgage Payment Calculator (with CMHC Insurance)
Calculate your monthly mortgage payment and CMHC default insurance premium using the correct Canadian compounding convention.
Mortgage math in Canada works differently than in the U.S. — Canadian fixed-rate mortgages are legally compounded semi-annually, not monthly, which changes your actual payment even at the same posted interest rate. This calculator applies the correct Canadian convention, and adds CMHC default insurance automatically when your down payment is under 20%.
How This Calculator Works
Your monthly payment is calculated by converting the semi-annual compounding rate into an effective monthly rate, then amortizing your loan over the number of years you select. If your down payment is less than 20% of the purchase price, CMHC mortgage default insurance is required, priced on a sliding scale based on your loan-to-value (LTV) ratio:
- LTV up to 65% — 0.60% premium
- LTV 65.01%–75% — 1.70% premium
- LTV 75.01%–80% — 2.40% premium
- LTV 80.01%–85% — 2.80% premium
- LTV 85.01%–90% — 3.10% premium
- LTV 90.01%–95% — 4.00% premium
A 30-year amortization (only available on some insured mortgages) adds a further 0.20% to the premium. The CMHC premium is added to your mortgage principal by default, so you pay it off — with interest — over the life of the loan, rather than paying it in cash upfront.
Frequently Asked Questions
Why is my Canadian mortgage payment different from a U.S.-style calculation at the same rate?
Canadian law requires fixed-rate mortgages to compound semi-annually rather than monthly, which produces a slightly different effective monthly rate — and therefore a slightly different payment — than the simple monthly-compounding formula commonly used in U.S. calculators.
When do I need CMHC mortgage default insurance?
You need it whenever your down payment is less than 20% of the home's purchase price (a "high-ratio" mortgage), for homes priced up to $1.5 million. Above $1.5 million, a minimum 20% down payment is required and CMHC insurance isn't available at all.
Do I pay the CMHC premium in cash?
Usually no — most lenders add the CMHC premium to your mortgage principal, so you finance it along with the rest of your loan. Note that Ontario, Quebec, and Saskatchewan also charge provincial sales tax on the premium itself, which is typically due in cash upfront and is not included in this calculator.
What's the minimum down payment for a home in Canada?
For homes up to $500,000, the minimum is 5% of the purchase price. For the portion of the price between $500,000 and $1.5 million, the minimum rises to 10% on that portion. Homes priced at $1.5 million or more require a minimum 20% down payment.