🇨🇦 Canadian Mortgage Calculator

How Canadian Mortgages Work

Canadian mortgages typically use a 25-30 year amortization schedule but are offered as shorter renewable terms — most commonly 5 years — at either a fixed or variable interest rate. At the end of each term, you renew your mortgage, often renegotiating your rate with your existing lender or switching to a new one.

CMHC Mortgage Insurance

If your down payment is less than 20% of the purchase price, you are required to purchase mortgage default insurance, most commonly through CMHC (Canada Mortgage and Housing Corporation). This insurance protects the lender in case of default and the premium — which increases as your down payment percentage decreases — is usually added directly to your mortgage principal. Use our PMI Calculator to estimate this cost.

The Mortgage Stress Test

Canadian federal banking regulations require lenders to qualify borrowers at a higher "stress test" rate than the actual contract rate, to ensure affordability if interest rates rise in the future. This means your approved loan amount may be lower than what a simple payment calculation suggests — always confirm your exact qualifying rate with a licensed mortgage broker or lender.

Planning Your Purchase

Use our Mortgage Calculator to estimate your monthly payment with Canada selected, and the Down Payment Calculator to see how different down payment amounts affect your CMHC insurance costs and monthly payment.