How Canadian mortgages are different
U.S. mortgage calculators give the wrong answer for Canadian loans. By law (the Interest Act), Canadian fixed-rate mortgages compound semi-annually, not monthly, which makes the effective rate slightly lower than the quoted rate. Canada also has mandatory mortgage default insurance for down payments under 20%, a federal stress test and minimum down payment rules. This calculator applies all of them.
Minimum down payment in Canada
| Purchase price | Minimum down payment |
|---|---|
| $500,000 or less | 5% of the purchase price |
| $500,000 to $1,499,999 | 5% of the first $500,000 + 10% of the portion above $500,000 |
| $1.5 million or more | 20% (insurance not available) |
CMHC mortgage insurance premiums
If you put down less than 20%, your lender requires mortgage default insurance from CMHC, Sagen or Canada Guaranty. The premium is a percentage of the mortgage amount and is usually added to the mortgage:
| Loan-to-value | Premium |
|---|---|
| Up to 65% | 0.60% |
| 65.01%–75% | 1.70% |
| 75.01%–80% | 2.40% |
| 80.01%–85% | 2.80% |
| 85.01%–90% | 3.10% |
| 90.01%–95% | 4.00% |
Premiums of 0.20% extra may apply to 30-year amortizations. In Ontario, Québec and Saskatchewan, provincial sales tax on the premium must be paid in cash at closing and cannot be added to the mortgage.
The mortgage stress test
To qualify for a mortgage from a federally regulated lender, you must show you could afford payments at the higher of your contract rate plus 2% or 5.25%. The calculator shows this qualifying payment so you can check affordability. Lenders typically want your gross debt service (housing costs) under about 39% of gross income and total debt service under 44%.
Accelerated bi-weekly payments
An accelerated bi-weekly payment is half of the monthly payment, paid every two weeks. Because there are 26 bi-weekly periods in a year, you effectively make one extra monthly payment each year, which can shorten a 25-year amortization by around three years and save thousands in interest. Regular bi-weekly payments (monthly × 12 ÷ 26) do not accelerate payoff much.
30-year amortization rules
Since December 15, 2024, first-time home buyers and buyers of newly built homes can get insured mortgages with 30-year amortizations, and the insured mortgage cap rose to $1.5 million. Uninsured mortgages (20% or more down) may already be amortized over 30 years with many lenders.
Frequently asked questions
How is a Canadian mortgage payment calculated?
What is the minimum down payment on a $700,000 home?
Can I add CMHC insurance to my mortgage?
What rate is used for the stress test?
Is accelerated bi-weekly worth it?
Sources & methodology
This calculator was last reviewed on November 1, 2026. Figures are based on the following official and primary sources:
- Bank of Canada – Interest rates
- Financial Consumer Agency of Canada – Mortgages
- OSFI – Minimum qualifying rate (stress test)
- Freddie Mac PMMS via FRED; Bank of Canada Valet API
- CMHC Mortgage Loan Insurance premiums
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