Canada Mortgage Calculator
Work out your mortgage payments, total interest cost, and full amortisation schedule in seconds. Built for Canadian semi-annual compounding, with CMHC insurance and stress test checks built in.
Enter Your Property & Down Payment
Enter your property value and down payment to see your mortgage amount and LTV. We flag if you're below 20% where CMHC mortgage insurance is required by law.
Set Your Interest Rate & Amortisation
Adjust your rate and amortisation period up to 30 years. We apply Canadian semi-annual compounding and benchmark your rate against the Bank of Canada policy rate.
Review Your Full Payment Breakdown
See your payment amount, total interest, and year-by-year amortisation schedule. Model prepayment savings and compare two mortgages side by side instantly.
Mortgage Calculator
Repayments · Total Interest · LTV · Full Schedule · 2025-26
Property & Loan Details
Interest Rate & Amortisation Period
Payment Options
Property Use
Rental / investment property?
Rental properties typically attract higher mortgage rates. Mortgage interest is deductible against rental income. A minimum 20% down payment is required — CMHC insurance is not available for investment properties. Per CRA.
Mortgage Summary
Based on a property value of $700,000, a $140,000 down payment, and a $560,000 mortgage at 5.00% p.a. over 25 years (P&I).
Your monthly payment is $0. Over the full amortisation period you will pay $0 in interest, for a total repayment of $0.
FCAC — Mortgages | Bank of Canada Interest Rates | CMHC — Mortgage Loan Insurance
Last verified: March 2026 | Avg 5-yr fixed: ~5.00% (BoC)
Amortisation Schedule
Annual amortisation schedule showing how payments are split between principal and interest each year. In early years of a 25-year mortgage, the majority of each payment is interest — this gradually shifts as the balance decreases.
Most Canadian mortgages allow annual prepayments of 10–20% without penalty — check your mortgage contract. Fixed rate mortgages limit prepayments; variable rate mortgages are typically more flexible. Source: FCAC.
| Year | Opening Balance | Annual Payments | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|---|
| Calculating… | |||||
Interest vs Principal
How your payments are split between interest and principal each year. Early in a 25-year mortgage, typically 65–75% of each payment is interest — this gradually shifts as the balance falls.
Annual Interest Paid
Principal vs Interest Split (Annual)
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|
| Calculating… | ||||
Extra prepayments made in the first 5 years of a mortgage have a disproportionately large impact because the balance is highest. Use the Prepayment Calculator in the Schedule tab. If this is a rental property, use our Rental Yield Calculator to model net returns after all expenses and tax deductions.
Rate Benchmark
Compare your mortgage rate against the Bank of Canada policy rate and the average Canadian 5-year fixed rate. Note: Canadian mortgages must also pass the stress test — lenders qualify you at your rate plus 2% (or 5.25%, whichever is higher).
Rate Comparison
Bank of Canada Policy Rate — March 2026 (2.75%) | Bank of Canada — Canadian Interest Rates | OSFI — Guideline B-20 (Stress Test)
Last verified: March 2026
Compare Two Mortgages
Mortgage A mirrors your main calculator. Enter Mortgage B's rate and amortisation to see the cost difference. Canadian mortgages renew every 1–5 years — even a 0.25% rate difference at renewal adds up significantly over the full amortisation period.
Side-by-Side Comparison
| Metric | Mortgage A | Mortgage B | Difference |
|---|---|---|---|
| Interest Rate | — | — | — |
| Amortisation | — | — | — |
| Payment | — | — | — |
| Total Interest | — | — | — |
| Total Repaid | — | — | — |
Adjust Mortgage B settings to compare.
Both mortgages use the same mortgage amount and payment frequency. Always request a full cost of borrowing disclosure from each lender. Per FCAC.
For educational purposes only. Repayments are calculated using the standard amortisation formula with semi-annual compounding converted to an effective monthly rate, as required under Canadian law. Results assume a fixed interest rate, on-time payments, and no additional fees. Actual payments will differ based on lender, compounding method, fee structures, and rate movements at renewal.
This calculator does not account for CMHC insurance premiums, land transfer tax (provincial), legal/notary fees ($1,500–$3,000), home inspection fees ($400–$700), title insurance (~$300), or ongoing property taxes and condo fees. For rental properties, tax treatment depends on your specific circumstances — always consult a registered tax professional. Mortgage stress test rates per OSFI Guideline B-20.
Mortgage Types in Canada
Fixed, variable, open, closed, HELOC, P&I vs interest-only
According to the Financial Consumer Agency of Canada (FCAC), choosing the right mortgage structure depends on your financial situation, risk tolerance, and plans for the property. Canadian mortgages have two distinct time periods: the amortisation period (total repayment length, typically 25–30 years) and the mortgage term (period your rate is locked in, typically 1–5 years).
| Mortgage Type | Rate | Key Feature | Best For |
|---|---|---|---|
| Fixed Rate P&I (Closed) Most common in Canada | Locked | Rate fixed for the term (1–5 years). Payments are predictable. Prepayment limits apply — typically 10–20% of original balance annually. Break fees (IRD) apply if you exit early. | Most Canadian homeowners — provides certainty and the lowest available rate for the term chosen |
| Variable Rate P&I (Closed) Moves with prime rate | Prime ± discount | Rate adjusts when the Bank of Canada changes the policy rate (and lenders adjust prime). Payment may be fixed (payment adjusts at renewal) or adjustable (payment changes immediately). Lower break fees than fixed. | Borrowers who believe rates will fall and can absorb payment changes; historically lower cost over full amortisation |
| Fixed Rate (Open) Short terms, flexible | Higher rate | Higher rate than closed mortgages but can be repaid in full at any time without penalty. Typically available for 6-month to 1-year terms only. | Borrowers planning to sell, receive a large inheritance, or refinance in the near term |
| Variable Rate (Open) Maximum flexibility | Higher rate | Moves with prime rate and can be fully repaid without penalty at any time. Most flexible Canadian mortgage product. | Borrowers expecting a property sale or large lump-sum repayment within the short term |
| HELOC (Home Equity Line of Credit) Revolving equity access | Prime + premium | Revolving credit secured against your home equity. Interest-only payments required on the drawn balance. Max 65% LTV for the HELOC portion; combined mortgage + HELOC max 80% LTV. | Homeowners needing flexible access to equity for renovations, investments, or emergencies |
| Interest-Only (IO) Uncommon for insured loans | Higher | Only interest paid during the IO period — principal unchanged. More common for investment/commercial properties. Not available on CMHC-insured mortgages. | Real estate investors managing cash flow; not available on owner-occupied insured mortgages |
| Combination / Split Mortgage Fixed + variable | Mixed | A portion at a fixed rate and the rest at a variable rate. Balances payment certainty with rate flexibility. Often offered as a single product by major banks. | Borrowers wanting partial rate certainty while retaining some variable rate benefit and flexibility |
Fixed Rate (Closed)
- ✓Payment certainty for the full term
- ✓Lower rate than open mortgages
- ✓Protection if rates rise during the term
- –Significant break fees (IRD) if exiting early
- –Limited prepayment privileges (10–20%/yr)
Variable Rate (Closed)
- ✓Historically lower cost over full amortisation
- ✓Lower break fee (typically 3 months interest)
- ✓Benefit immediately when BoC cuts rates
- –Payment or balance uncertainty if rates rise
- –Requires higher risk tolerance
Source: FCAC — Mortgages
Mortgage Rate Benchmarks
Bank of Canada policy rate and average mortgage rates — March 2026
The Bank of Canada policy rate (2.75% p.a., March 2026) is the overnight rate that directly influences the prime rate (typically policy rate + 2.20%) and therefore variable mortgage rates. Fixed mortgage rates are influenced by Government of Canada bond yields — particularly the 5-year bond — rather than directly by the policy rate. Canadian mortgages compound semi-annually by law, not monthly — the stated rate must be converted to an effective monthly rate for accurate calculations.
| Benchmark | Rate (p.a.) | Source | What it means |
|---|---|---|---|
| BoC Policy Rate | 2.75% | BoC Mar 2026 | Sets prime rate (≈ 4.95%). Directly influences variable rate mortgages and HELOCs. |
| Prime Rate | ~4.95% | BoC Mar 2026 | Published by major banks at policy rate + 2.20%. Variable mortgages priced at prime ± a discount/premium. |
| Avg 5-Year Fixed Rate (New) | ~5.00% | BoC Lending Rates | Most popular term for Canadian homeowners. Tracks the 5-year Government of Canada bond yield plus a spread. |
| Avg Variable Rate (New) | ~5.50% | BoC Lending Rates | Typically prime minus a lender discount. Currently higher than the 5-yr fixed — unusual historically. |
| OSFI Stress Test Rate | Rate + 2% or 5.25% | OSFI B-20 | Qualifying rate used by all federally regulated lenders. Reduces maximum mortgage by approximately 20%. |
| Stats Canada CPI Inflation | ~2.30% | Stats CAN Mar 2026 | BoC targets 2% inflation. Mortgage rates well above inflation level as at March 2026. |
On a $560,000 mortgage over 25 years, a 0.50% rate reduction saves approximately $43,000 in total interest. Canadian mortgages renew every 1–5 years — shopping the market at each renewal rather than accepting your lender's posted rate is one of the most impactful financial decisions a homeowner can make. Per FCAC.
Bank of Canada Policy Rate — March 2026 (2.75%) | Bank of Canada — Canadian Interest Rates | Statistics Canada CPI — March 2026 (~2.30%)
Last verified: March 2026
CMHC Mortgage Insurance & Down Payment Rules
When CMHC is required, premium rates, and minimum down payments
CMHC mortgage loan insurance is required by law for all high-ratio mortgages — where the down payment is less than 20% of the purchase price. The insurance protects the lender if you default. The premium is added to your mortgage balance and amortised over the life of the loan. According to CMHC, insured mortgages are only available on owner-occupied properties priced under $1,500,000 (as of December 2024).
| Down Payment | LTV | CMHC Required? | CMHC Premium |
|---|---|---|---|
| ≥ 20% down payment | ≤ 80% | No CMHC | None — conventional (uninsured) mortgage. Max amortisation: 30 years. |
| 15–19.99% down payment | 80.01–85% | Required | 2.80% of mortgage amount. e.g. on $560k mortgage = $15,680 added to balance. |
| 10–14.99% down payment | 85.01–90% | Required | 3.10% of mortgage amount. e.g. on $630k mortgage = $19,530 added to balance. |
| 5–9.99% down payment | 90.01–95% | Required | 4.00% of mortgage amount. e.g. on $665k mortgage = $26,600 added to balance. |
| Homes $1,500,000+ | Any LTV | Not eligible | Minimum 20% down payment required. CMHC insurance not available regardless of LTV. |
Minimum Down Payment Rules (CMHC)
| Purchase Price | Minimum Down Payment | Example |
|---|---|---|
| Up to $500,000 | 5% | $500,000 home → $25,000 minimum down |
| $500,001–$1,499,999 | 5% on first $500K + 10% on remainder | $700,000 home → $25,000 + $20,000 = $45,000 minimum |
| $1,500,000+ | 20% minimum | $1,600,000 home → $320,000 minimum. CMHC not available. |
CMHC insurance protects the lender, not you. The premium is added to your mortgage balance and you pay interest on it for the full amortisation. On a $560,000 mortgage with a 4.00% CMHC premium, the $22,400 premium at 5.00% over 25 years adds approximately $17,000 in total interest cost. Maximum amortisation for CMHC-insured mortgages is 30 years (extended in 2024). Investment properties and homes over $1,500,000 are not eligible. Per CMHC.
Source: CMHC — Mortgage Loan Insurance for Consumers | FCAC — Mortgages
First-Time Home Buyer Programs
Federal programs available in Canada — 2025-26
Canadian first-time home buyers have access to several federal programs that reduce upfront costs or provide tax savings. Eligibility criteria vary by program — always verify current limits directly with the CRA and CMHC before purchasing. Provincial programs (land transfer tax rebates, etc.) also exist — check your provincial government's website.
| Program | Benefit | Eligibility | Authority |
|---|---|---|---|
| First Home Savings Account (FHSA) | Contribute up to $8,000/year ($40,000 lifetime). Contributions are tax-deductible. Qualifying withdrawals for a first home purchase are tax-free — combining RRSP and TFSA tax benefits. | Canadian resident aged 18+, first-time home buyer (have not owned a qualifying home in the current year or in any of the 4 preceding calendar years). Must open account before first purchase. Account must be open for at least one calendar year before withdrawing. Per CRA. | CRA |
| Home Buyers' Plan (HBP) | Withdraw up to $60,000 from your RRSP tax-free to use as a down payment. Amount must be repaid to your RRSP over 15 years (starting 2 years after withdrawal) — otherwise included in taxable income each year. | First-time home buyer (or separated/divorced individual re-entering the market). Must have a written agreement to buy or build a qualifying home. RRSP funds must have been in the account for at least 90 days before withdrawal. Per CRA. | CRA |
| First-Time Home Buyers' Tax Credit (FTHBTC) | Non-refundable federal tax credit of $10,000 on your tax return in the year you purchase — generating up to $1,500 in tax savings (at the 15% federal rate). Couples can split the claim. | First-time home buyer who acquires a qualifying home. Must not have lived in another home owned by you or your spouse/common-law partner in the preceding 4 years. The home must be registered in your name. Per CRA. | CRA |
| GST/HST New Housing Rebate | Partial rebate of GST (or the federal component of HST) paid on a new or substantially renovated home. The federal rebate is available on homes up to $450,000 (full rebate) with a phase-out to $500,000. | Purchasers of new or substantially renovated homes, or owner-built homes. Must be your primary place of residence. Apply using CRA Form GST190. Provincial HST rebates may also apply — check provincial rules. Per CRA. | CRA |
Stacking programs: First-time buyers can combine multiple federal programs — for example, contributing to an FHSA for tax deductions while saving, withdrawing from an RRSP via the HBP at purchase, and claiming the FTHBTC on the tax return for that year. A couple who both have FHSAs and RRSPs could potentially access up to $200,000+ in combined tax-advantaged savings for their down payment. Always confirm current limits and rules directly with the CRA, as these can change with each federal budget.
Source: CRA — First Home Savings Account | CRA — Home Buyers' Plan
Mortgage Repayment Formulas
How Canadian P&I, semi-annual compounding, and affordability calculations work
Canadian mortgages must compound semi-annually by law (Interest Act, R.S.C. 1985). The stated nominal rate must be converted to an effective monthly rate before calculating payments.
Example: 5.00% nominal → effective monthly = (1.025)^(1/6) − 1 = 0.41239% per month
Standard amortisation formula applied after converting to the effective monthly rate. Used by all Canadian lenders to calculate equal periodic payments that fully repay the mortgage over the amortisation period.
P = mortgage amount | r = effective monthly rate | n = total months
OSFI Guideline B-20 requires lenders to qualify borrowers at a higher test rate. The same PMT formula is applied at the stress test rate to determine maximum mortgage.
At 5.00% contract rate → stress test at 7.00%. Reduces max mortgage by ~18–22% vs qualifying at the contract rate
Reverse of the PMT formula — solves for the maximum mortgage at a given payment budget. Note: lenders also cap total debt service (TDS) at 44% of gross income and gross debt service (GDS) at 39%.
Add your down payment to the max mortgage to get your total property purchase budget
Example: A $560,000 mortgage at 5.00% p.a. (semi-annual compounding) over 25 years has an effective monthly rate of 0.41239% and a monthly payment of ~$3,255, with total interest of ~$416,000 — 74% of the original mortgage amount. Making accelerated bi-weekly payments ($1,628 every two weeks) saves approximately $38,000 and cuts 3 years off the amortisation. Using a $500/month prepayment saves ~$90,000 and cuts around 7 years. Source: FCAC.
Source: FCAC — Mortgages | OSFI — Guideline B-20 | Interest Act (R.S.C. 1985) — Semi-Annual Compounding
Frequently Asked Questions
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About this calculator
This calculator provides estimates for educational purposes. Interest rates and fees vary by lender and are subject to approval. Rates shown are indicative only and updated regularly but may not reflect current market conditions. Always verify rates directly with lenders before making decisions.