How the Canadian mortgage calculator works
Canadian fixed mortgage payments are calculated using semi-annual interest compounding. The calculator adds an estimated mortgage default insurance premium to the loan when the down payment is below 20%, then shows the payment, interest during the selected term and remaining balance.
Minimum down payment in Canada
- 5% of the purchase price up to $500,000.
- 5% of the first $500,000 plus 10% of the portion above $500,000 for homes below $1.5 million.
- 20% for homes priced at $1.5 million or more.
Why compare amortization periods?
A longer amortization normally lowers the scheduled payment but increases total interest. A shorter amortization raises the payment and reduces interest more quickly. The best choice depends on cash flow, risk tolerance and lender approval.
Frequently asked questions
What is the mortgage term?
The term is how long the current rate and contract conditions apply. The amortization is the total scheduled repayment period. A five-year term can sit inside a 25-year amortization.
Does a down payment below 20% require insurance?
In most Canadian home purchases, mortgage default insurance is required when the down payment is less than 20%, subject to insurer and lender rules.
Does the calculator test mortgage qualification?
No. It estimates payments, not approval. Lenders assess income, debts, credit, property and the mortgage stress test.
Methodology updated October 2026 using Financial Consumer Agency of Canada down-payment guidance and published CMHC premium information.