Canada — CAD mortgage math
Canada Mortgage Calculator
Model Canadian mortgage payments with CMHC and 5-year fixed terms.
Base loan
$450,000.00
CMHC premium
$13,950.00
Monthly payment
$2,846.29
Balance after term
$414,112.50
Canadian mortgage guide
How Canadian mortgages differ
Most Canadian mortgages use a contract term (often 5 years) with a longer amortization period (commonly 25 years). Payments are calculated on the amortization, but your rate is fixed only for the term before renewal.
When your down payment is below 20%, lenders require default mortgage insurance (CMHC, Sagen, or Canada Guaranty). The premium is usually added to your loan balance.
Using these calculators
Enter property price, down payment, rate, amortization, and term to see monthly payment including insurance when applicable. Use the CMHC tool to isolate the insurance premium by down payment percentage.
Stress-test rules require borrowers to qualify at the higher of their contract rate plus 2% or the benchmark rate — affordability may be lower than this calculator shows.
- Minimum down payment is 5% on the first $500k and 10% on the portion above for homes under $1M.
- Renewal at term end may change your rate and payment.
- Property taxes and heating costs factor into lender qualification.
Frequently asked questions
- ?How are CMHC fees calculated?
- CMHC (SCHL) premiums depend on your down payment percentage. With 5% down the premium is about 4% of the loan; with 10% down about 3.1%; with 15% down about 2.8%. The premium is usually added to your mortgage balance.
- ?What is CMHC mortgage insurance?
- Default mortgage insurance protects the lender when your down payment is below 20%. CMHC, Sagen, and Canada Guaranty are the main providers. The premium is a one-time cost added to your loan in most cases.
- ?How much is CMHC on a $500,000 home?
- With 10% down ($50,000) on a $500,000 home, the loan is $450,000 and CMHC premium is roughly $13,950 (3.1%). Use the calculator above with your exact down payment.
- ?Why is my payment higher than the US calculator for the same price?
- Insurance premiums, Canadian rate conventions, and amortization vs term structure differ. Always use country-specific tools.
- ?What happens at renewal?
- At the end of your 5-year term, you renegotiate rate and conditions with your lender or switch lenders. Your amortization schedule continues unless you change it.