Mortgage Calculator

How to Use This Mortgage Calculator

Select your country (Canada or US), enter your home price, down payment, amortization period, and interest rate. Results update instantly. For Canada, we also calculate your CMHC insurance premium (if applicable) and stress test qualifying payment.

Canada vs US: Key Differences

Canada uses semi-annual compounding by law (Interest Act). This means the effective monthly rate is calculated as:

r = (1 + annual rate / 2)^(1/6) − 1

United States uses monthly compounding, so:

r = annual rate / 12

Both then use the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

What Is CMHC Insurance? (Canada)

If your down payment is less than 20% in Canada, you are required to purchase mortgage default insurance through CMHC (or Sagen/Canada Guaranty). The premium is added to your mortgage principal:

• 5%–9.99% down → 4.00% of loan amount
• 10%–14.99% down → 3.10% of loan amount
• 15%–19.99% down → 2.80% of loan amount
• 20%+ down → No CMHC required

What Is the Mortgage Stress Test? (Canada)

Canadian lenders must qualify you at the higher of: your contract rate + 2%, or 5.25%. This stress test payment is shown so you can see what rate you must qualify at — your actual payment will be lower.

Tips for Getting a Lower Mortgage Payment

• Increase your down payment to 20%+ to avoid CMHC insurance (Canada)
• Shop lenders — even 0.25% rate difference saves thousands over 25 years
• A shorter amortization (e.g. 20 years vs 25) saves significant interest
• Improve your credit score before applying