Common Questions
Mortgage Calculator — FAQ
Why does this calculator give a different number than a US mortgage calculator?
Canadian mortgages are legally required to compound semi-annually, not monthly like US mortgages. This calculator uses the correct Canadian formula — a generic US-built calculator will give you a slightly wrong number.
What is CMHC insurance and when do I need it?
If your down payment is less than 20% of the purchase price, Canadian lenders require mortgage default insurance (commonly called CMHC insurance, though there are other providers). The premium is added to your mortgage amount and is calculated based on how much you're putting down — the smaller your down payment, the higher the premium rate.
What's the minimum down payment in Canada?
5% on the portion of the price up to $500,000, plus 10% on the portion between $500,000 and $1.5M. Homes over $1.5M require a minimum 20% down payment and aren't eligible for mortgage insurance at all.
Can I get a 30-year amortization?
Yes, if you're a first-time buyer or purchasing a newly-built home, insured mortgages can be amortized over 30 years instead of the standard 25 — this lowers your monthly payment but increases total interest paid, and carries a small premium surcharge.
Does accelerated bi-weekly actually save money?
Yes, genuinely. Accelerated bi-weekly payments equal half your monthly payment, paid every two weeks — which works out to 26 payments a year instead of 24, effectively one extra monthly payment annually. That extra payment goes straight to principal, meaningfully shortening your amortization and cutting total interest.