Estimate your regular mortgage payment with Canadian semi-annual compounding.
Monthly Payment
$2,816
Amortization Breakdown
This calculator uses the standard Canadian mortgage payment formula with semi-annual compounding. The annual interest rate is first converted to a semi-annual rate, then to an equivalent monthly rate using the formula: r = (1 + annual/2)^(1/6) - 1.
The monthly payment is calculated using the amortization formula: M = P x [r(1+r)^n] / [(1+r)^n - 1], where P is the total mortgage amount (including CMHC insurance if applicable), r is the monthly rate, and n is the total number of monthly payments.
If your down payment is less than 20%, mortgage default insurance from CMHC, Sagen, or Canada Guaranty is required by law. The insurance premium is calculated as a percentage of the base mortgage and added to your loan balance.
Use this tool to compare different price points, down payment amounts, and interest rates. When you are ready to move forward, contact Ajay to lock in a rate and get a formal pre-approval.
Canadian fixed-rate mortgages compound interest semi-annually, not monthly. The annual rate is divided by 2, compounded over a 6-month period, and then converted to an equivalent monthly rate. This results in slightly lower effective interest than monthly compounding at the same nominal rate.
CMHC mortgage default insurance is required when your down payment is less than 20% of the purchase price. The premium is added to your mortgage balance. Rates are 4% for 5-9.99% down, 3.1% for 10-14.99% down, and 2.8% for 15-19.99% down.
A fixed rate stays the same for your entire term (typically 1-5 years), giving you payment certainty. A variable rate fluctuates with the lender's prime rate, which follows the Bank of Canada overnight rate. Variable rates are often lower initially but carry the risk of increasing.
Accelerated bi-weekly payments can shave years off your amortization because you effectively make one extra monthly payment per year. Standard bi-weekly simply splits the monthly payment in half. This calculator shows the standard bi-weekly amount.
Get a personalized rate quote and see exactly what you qualify for.