Calculate your exact monthly mortgage payment using Canadian semi-annual compounding. Includes CMHC insurance, amortization schedule, and payment comparisons.
Uses Canadian semi-annual compounding — the legally required method for all Canadian mortgages.
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Canadian mortgage calculations are legally different from American ones. In Canada, interest on mortgages must be compounded semi-annually (twice per year) — not monthly as in the US. This means a Canadian mortgage at 4.29% has a slightly different effective rate than an American mortgage at 4.29%, and any calculator that uses monthly compounding will give you the wrong answer.
Why this matters: The Canadian semi-annual compounding formula converts your annual rate to an equivalent monthly rate using: monthly rate = (1 + annual rate / 2)^(1/6) − 1. For a 4.29% mortgage, this gives an effective monthly rate of 0.3549% rather than 0.3575% (monthly compounding). Over 25 years, the difference adds up to hundreds of dollars in interest. Our calculator uses the correct Canadian formula.
A fixed-rate mortgage locks in your interest rate for the entire mortgage term (commonly 5 years). Your payment stays the same regardless of what interest rates do in the broader economy. This gives you payment certainty and makes budgeting straightforward. In April 2026, 5-year fixed rates are around 4.04–4.29%.
A variable-rate mortgage moves up and down with the Bank of Canada's overnight rate. When the BoC cuts rates, your interest costs fall. When it raises rates, they rise. Variable rates are currently around 3.35–3.45% — lower than fixed rates — but carry the risk of future increases. Most variable-rate mortgages in Canada now use adjustable-rate structures where your actual payment changes with the rate, giving you real-time savings or increases.
Many Canadians confuse their mortgage term and their amortization period. The amortization is the total length of time to pay off the entire mortgage — typically 25 years. The term is how long your current interest rate is locked in — typically 5 years. At the end of each term, you renew your mortgage at whatever rates are available at that time. You'll likely renew 4–5 times before your mortgage is fully paid off.
Choosing accelerated bi-weekly payments instead of monthly payments is one of the simplest ways to save money and pay off your mortgage faster. With accelerated bi-weekly, you make 26 half-monthly payments per year — which equals 13 monthly payments instead of 12. This extra payment per year goes entirely toward your principal and can shave years off your amortization and save tens of thousands in interest over the life of your mortgage.