Full schedule · Canadian compounding · CMHC detection
Canadian Amortization Calculator
See every single payment — how much goes to interest vs. principal, your running balance, and cumulative interest paid. Uses the correct Canadian semi-annual compounding formula, not the US monthly version that overstates interest costs.
Educational calculators — always consult a licensed professional before making financial decisions.
Enter the purchase price of the property.
In Canada, minimum is 5% (under $500K) or 10% on the $500K–$999K portion.
Canadian mortgages compound semi-annually. Enter your 5-year fixed or variable rate.
Maximum is 30 years for insured mortgages (new build exception applies).
Monthly payment
$3,830
Canadian semi-annual compounding
Yearly Summary (first 10 years)
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $15,949 | $30,005 | $544,051 |
| Year 2 | $16,836 | $29,118 | $527,215 |
| Year 3 | $17,773 | $28,181 | $509,441 |
| Year 4 | $18,763 | $27,191 | $490,679 |
| Year 5 | $19,807 | $26,147 | $470,872 |
| Year 6 | $20,909 | $25,045 | $449,963 |
| Year 7 | $22,073 | $23,881 | $427,890 |
| Year 8 | $23,301 | $22,653 | $404,588 |
| Year 9 | $24,598 | $21,356 | $379,990 |
| Year 10 | $25,967 | $19,987 | $354,023 |
Canadian semi-annual compoundingCanadian law requires mortgages to compound semi-annually (twice per year), not monthly like US mortgages. This results in slightly lower effective interest costs than the US equivalent at the same nominal rate.
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What you'll need
- ·Home purchase price
- ·Down payment amount
- ·Mortgage interest rate
- ·Amortization period (20, 25, or 30 years)
What you'll get
- ✓Full payment schedule — Every payment, year by year
- ✓Principal vs interest — The split for each payment
- ✓CMHC detection — Automatically added if under 20% down
How it works
Enter your home price, down payment, and rate
We detect CMHC eligibility and add the premium to your balance automatically. Canadian semi-annual compounding is applied throughout.
Choose your amortization period
20, 25, or 30 years. The longer the amortization, the lower your monthly payment — but the more interest you pay overall.
See your full schedule and yearly totals
View every payment broken down into principal and interest, track your running balance, and see exactly how much cumulative interest you've paid at each year.
Monthly Payment Comparison: $700,000 Home, 10% Down, 5.49%
| Amortization | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 20 years | $4,121 | $248,800 | $988,800 |
| 25 years | $3,440 | $332,000 | $1,032,000 |
| 30 years | $3,038 | $423,700 | $1,093,700 |
CMHC premium (3.10% on 10% down) added to balance. Semi-annual compounding applied. Shorter amortization = lower total cost.
Why Canadian payments differ from American ones
Canadian mortgage interest is compounded semi-annually, not in advance — a requirement of the federal Interest Act — while US mortgages compound monthly. At the same posted rate, the Canadian payment comes out slightly lower.
It is a small difference per month and a large one over an amortization, and it is why a US mortgage calculator gives the wrong answer for a Canadian mortgage. Every calculator on this site’s Canadian pages uses the semi-annual convention.
The stress test you have to clear
Federally regulated lenders must qualify you at the minimum qualifying rate — the greater of your contract rate plus 2% or 5.25% — under OSFI’s Guideline B-20. You are approved on that higher rate, not the rate you will actually pay.
Practically, it means the mortgage you qualify for is smaller than your real payment would suggest. Budgeting off the contract rate and then finding the approval short is one of the most common surprises for first-time buyers.
When mortgage insurance is mandatory
Put down less than 20% and mortgage loan insurance is compulsory, not optional. The premium runs from 2.8% of the loan at 15–19.99% down up to 4% at 5–9.99% down, and it is normally added to the mortgage rather than paid up front — so you pay interest on it for the life of the loan.
Two limits are worth knowing. Insurance is unavailable above $1.5M, so above that price 20% down is effectively mandatory. And in most provinces the PST on the premium must be paid in cash at closing — it cannot be rolled into the mortgage.
Since 15 December 2024, a 30-year insured amortization is available to all first-time buyers, whether resale or new build, and to any buyer of a new build. It lowers the monthly payment and raises total interest, and it carries a 0.2% premium surcharge — worth modelling both ways in the CMHC insurance calculator before choosing.
What the payment does not include
- Land transfer tax, due in cash at closing and charged twice in Toronto, where a municipal tax stacks on the provincial one. See the land transfer tax calculator.
- Property tax, set by your municipality and often collected by the lender alongside the payment.
- Condo fees, which lenders count against your qualifying ratios — commonly at 50% of the monthly fee.
- Legal fees, title insurance and the home inspection, all payable at closing from the same savings as the down payment.
About this calculator
Why is Canadian mortgage amortization calculated differently from the US?+
Canadian law (Interest Act) requires mortgages to compound semi-annually (twice per year). US mortgages compound monthly. At the same nominal rate, Canadian mortgages result in slightly lower interest costs because semi-annual compounding produces a lower effective rate than monthly compounding.
What is the maximum amortization period in Canada?+
For insured mortgages (under 20% down), the maximum is 30 years for newly built homes and 25 years for resale. For conventional mortgages (20%+ down), most lenders allow up to 30 years. Some credit unions offer up to 35 years.
How much of each Canadian mortgage payment goes to principal vs interest?+
In the early years of a mortgage, most of each payment is interest. On a $600,000 mortgage at 5.49%, roughly 70% of your first payment is interest and 30% is principal. By year 15, it's closer to 55% interest and 45% principal. The exact split shifts gradually each payment.
Does CMHC insurance get added to my mortgage balance?+
Yes. CMHC default insurance premiums (2.80%–4.00% of the insured amount depending on your down payment) are added to your mortgage balance and amortized over the full term. You don't pay it upfront, but you do pay interest on it over the life of the mortgage.
See exactly where every dollar goes over the life of your mortgage.
Back to the calculator ↑Canadian Amortization Calculator is built and maintained by the RealCostIQ editorial team. Cost ranges and rates are checked against published industry data and contractor quotes, and revised when the underlying figures move. Read our data methodology or more about who builds this. Every calculation runs in your browser — no account, and none of your inputs are stored.
Cost ranges and rates here are checked against contractor quotes and published industry data. If a number still looks off, email Support@RealCostIQ.com and we'll review and fix it.