Canadian Mortgage Calculator Estimate payments, pass the stress test, compare fixed/variable, and model prepayments — wit...
Canadian Mortgage Calculator
Estimate payments, pass the stress test, compare fixed/variable, and model prepayments — with 2025 CMHC & OSFI rules.
Canadian Semi-Annual Compounding**:
$$ \text{Monthly Rate} = \left(1 + \frac{r}{2}\right)^{2/12} - 1 $$
Example** ($600K home, 10% down, 4.89% 5-yr fixed, 25-yr amort): • Loan = $540,000 + $16,740 CMHC = **$556,740** • Monthly rate = (1 + 0.0489/2)1/6 − 1 = **0.4035%** • Payment = **$3,128/mo** • Accelerated bi-weekly = **$1,445** → **21.2 yrs**, **$98K interest saved**
✅ Pro Tip**: Always use **semi-annual compounding** — U.S. calculators (monthly) overstate Canadian payments by 0.2–0.5%.
⚠️ Avoid these costly mistakes:
- Bona fide sales clause** — Lender can call entire loan due if you sell (common in B-lenders)
- 3-month interest vs. IRD penalty** — 5-yr fixed @ 4.89% broken at Year 3: – 3-month interest = $6,700 – IRD = $24,300 → **Choose lenders with 3-month min**
- Portability traps** — “Free port” but new rate = higher of old rate or current posted rate
- CMHC fee on appraised value** — Not purchase price! (e.g., $600K offer, $620K appraisal → fee on $558K)
✅ Pro Tips**:
- Use OSFI B-20 stress test: 5.25% or contract + 2%
- Get penalty quotes *before* signing — ask: “Is it 3-month interest or IRD, whichever lower?”
- For <20% down: max amortization = 25 years (not 30)
| Product | Rate | $540K, 25-Yr Payment | Penalty (Yr 3) |
|---|---|---|---|
| 5-Yr Fixed (Big 5) | 4.89% | $3,128/mo | IRD: $24,300 |
| 5-Yr Fixed (Mono-line) | 4.64% | $3,062/mo | 3-mo: $6,500 |
| 5-Yr Variable | 5.70% | $3,311/mo | 3-mo: $7,700 |
📉 CMHC Insurance (2025)**:
- 5–9.99% down: 4.00%
- 10–14.99% down: 3.10%
- 15–19.99% down: 2.80%
📉 Stress Test Qualification** ($120K income, $500 debt): • Max housing: $3,500/mo (35% GDS) • Max total debt: $4,200/mo (42% TDS) • Qualifies at $3,410/mo (5.25%) → **$580K purchase @ 10% down**
➡️ Standard Mortgage
“$600K home, 10% down, 4.89% fixed — payment?” → **$3,128/mo** (monthly), **$1,445** (accel bi-weekly)
➡️ Stress Test
“$120K income — max affordable home?” → **$580K** (passes 5.25% test)
➡️ Fixed vs. Variable
Compare $540K at 4.89% vs. 5.70% — see payment delta and break-even.
➡️ Prepayment Planner
“$20K lump sum — how many months saved?” → **28 months**
Note: Uses OSFI B-20 stress test, CMHC 2025 premiums, and semi-annual compounding. Assumes fixed rate, no prepayment fees unless modeled.