Calculate Canadian mortgage payments with semi-annual compounding (Canadian law), CMHC mortgage insurance, land transfer tax, and stress test qualification.
Mortgage Details
CA$
%
Min 5% for under $500K | 5-10% over $500K | 20% to avoid CMHC premium
% (advertised)
Payment per Period
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CMHC Premium
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Mortgage Amount
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Down Payment
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Effective Rate
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Stress Test Rate
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Home Price
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Down Payment
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CMHC Mortgage Insurance
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Total Mortgage (incl. CMHC)
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Effective Semi-Annual Rate
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Payment per Period
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Number of Payments
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Total Paid
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Total Interest
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Stress Test Min Rate
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🍁 Canadian Law: Mortgages are compounded semi-annually, not monthly. This makes the effective rate slightly lower than the advertised rate.
FAQ
Why is Canadian mortgage compounding different?
By law, Canadian mortgages compound semi-annually (twice per year), not monthly. This means the effective monthly rate is: (1 + annual_rate/2)^(1/6) − 1. This makes the effective rate slightly favorable vs US mortgages.
What is CMHC mortgage insurance?
CMHC (Canada Mortgage and Housing Corporation) insurance is required for down payments under 20%. Premium: 4% (5-9.99% down), 3.1% (10-14.99%), 2.8% (15-19.99%). Added to mortgage and paid over the amortization.
What is the Canadian stress test?
Buyers must qualify at the higher of: (a) their contract rate + 2%, or (b) 5.25% (the regulatory minimum). This ensures borrowers can afford payments even if rates rise significantly.
What is the maximum amortization in Canada?
For insured mortgages (under 20% down): maximum 25 years. For uninsured (20%+ down): up to 30 years. Longer amortization = lower payments but more total interest.