Canadian Mortgage Calculator — Monthly Payments and CMHC Insurance

How Canadian mortgages work

Canadian mortgages are typically amortised over 25 years but have much shorter terms (usually 5 years). After each term, you renew at whatever rates are current.

Important: Mortgage interest in Canada is NOT tax-deductible for your primary residence (unlike the US).

CMHC Mortgage Insurance

If your down payment is less than 20%, you must get CMHC mortgage insurance, which protects the lender (not you). The premium is 2.8%–4% of the mortgage amount, added to your loan.

Down payment 5%-9.99% → 4% premium Down payment 10%-14.99% → 3.1% premium Down payment 15%-19.99% → 2.8% premium

On a $500,000 home with 5% down ($25,000), your CMHC premium would be $18,500 — added to your mortgage.

The stress test

To qualify for a mortgage in Canada, you must prove you can afford payments at your rate + 2% (or 5.25%, whichever is higher). This is the "stress test." It means you need to qualify for higher payments than you'll actually make.