How this calculator works
By law, Canadian fixed-rate mortgage interest compounds semi-annually, not monthly, so the effective monthly rate is (1 + rate ÷ 2)^(1/6) − 1.
With less than 20% down, default insurance is required and added to the mortgage: 4.00% of the loan with 5–9.99% down, 3.10% with 10–14.99% and 2.80% with 15–19.99%.
Accelerated biweekly payments are half the monthly payment every two weeks, which adds one extra monthly payment a year and shortens the amortization.
Insured mortgages need at least 5% down on the first $500,000 and 10% on the portion above it, and the price must be under $1.5 million.
Worked example
CA$650,000 home, 10% down, 4.5%, 25 years
- Mortgage before insurance: CA$585,000.
- Insurance at 3.10%: CA$18,135, making CA$603,135.
- Monthly payment: about CA$3,338.
Questions people ask
What is the difference between term and amortization?
The term (often 5 years) is how long your rate is fixed; the amortization (25 or 30 years) is how long the whole mortgage takes to repay.
Can I get a 30-year amortization?
Uninsured mortgages commonly allow 30 years. For insured mortgages, 30 years is available to first-time buyers and buyers of new builds.
What is the stress test?
Lenders must check you can afford payments at the higher of your rate plus 2% or a minimum qualifying rate.
Is provincial sales tax charged on insurance?
In Ontario, Quebec and Saskatchewan, sales tax applies to the default insurance premium and is paid at closing, not added to the mortgage.
Last reviewed October 2, 2026