Mortgage Calculator

The big difference is compounding. A Canadian fixed-rate mortgage compounds interest semi-annually by law — a rule of the federal Interest Act — so a posted rate is not simply divided by 12. A US mortgage compounds monthly, so the monthly rate is the annual rate divided by 12. The two methods give slightly different payments for the same posted rate. The mortgage insurance also differs: Canada uses a one-time CMHC premium added to the loan, while the US uses monthly private mortgage insurance (PMI). Pick your country at the top and the calculator switches both.

In Canada, mortgage default insurance is required whenever the down payment is under 20% — a high-ratio mortgage. It is offered by CMHC and two private insurers and protects the lender. The premium runs roughly 2.8% at 15% down, 3.1% at 10% down, and 4.0% at 5% down, and is normally added to the loan and paid off over the amortization. With 20% or more down, no premium applies.

On a US conventional mortgage with less than 20% down, lenders require private mortgage insurance, or PMI. Unlike Canada’s CMHC premium, PMI is not added to the loan — it is a monthly charge, roughly 0.3% to 1.1% of the loan a year, on top of your principal-and-interest payment. By law it ends once the balance reaches about 80% of the home’s original value, so the calculator estimates how long you pay it and the total cost.

In Canada the minimum is 5% on the first $500,000 of the price, 10% on any portion from $500,000 to $1,500,000, and 20% above $1,500,000. A US conventional loan can go as low as 3% down for many buyers. In both countries, putting 20% or more down avoids mortgage insurance entirely. The calculator shows the minimum for the country and price you enter and flags a down payment that falls short.

A regular bi-weekly payment just splits the year into 26 instead of 12, at no extra cost. An accelerated bi-weekly payment is the monthly payment divided by 2 — and because 26 half-payments equal 13 monthly payments instead of 12, you make one extra monthly payment a year. That extra goes straight to principal and typically clears a mortgage several years early, saving tens of thousands in interest. Switch the frequency above to see the exact figures.

It depends on the country. A Canadian CMHC premium is normally added to the loan amount and paid off over the full amortization, so the mortgage amount shown is the price minus your down payment, plus the premium. US PMI works differently — it is never financed into the loan; it is a separate monthly charge that stops once you reach 20% equity. The calculator handles each correctly: a financed premium for Canada, a monthly cost with an end date for the US.

In Canada, a federally regulated lender qualifies you at the greater of your contract rate plus 2% or 5.25%. In the US, lenders instead look at debt-to-income ratios, commonly around 43%. This calculator shows the payment for the rate you enter — to see your Canadian stress-test payment, simply enter the higher qualifying rate instead. Either way, the core payment here is principal, interest, and mortgage insurance — open Advanced options to add property tax and home insurance and see the all-in monthly figure.

A longer amortization lowers each payment but raises total interest, because the balance is paid down more slowly. In Canada a 25-year amortization is standard; in the US 30 years is the norm. Going from 25 to 30 years can cut the payment by roughly 10%, yet add tens of thousands in interest. Note that an insured Canadian mortgage is normally capped at 25 years, with 30 years allowed only for first-time buyers and new builds. Try the amortization chips above and compare the total-paid figure.