What is CMHC insurance in Canada?

CMHC (Canada Mortgage and Housing Corporation) insurance, also known as mortgage default insurance, is mandatory in Canada for home purchases with a down payment of less than 20% of the purchase price. It protects the lender in case the borrower defaults on the loan. The premium can be paid upfront or, more commonly, added to the total mortgage principal.

How do mortgage prepayments work?

Prepayments are extra payments made against the mortgage principal, in addition to the regular scheduled payments. They can be lump-sum (one-time) or recurring. Prepayments directly reduce the principal balance, which means you pay less interest over the life of the loan and can pay off your mortgage faster.

What's the difference between a fixed and variable interest rate?

A fixed-rate mortgage has an interest rate that is locked in for the entire term, so your payments remain constant. A variable-rate mortgage has an interest rate that fluctuates with the bank's prime rate. Your payments may stay the same (with more or less going to principal) or they may change, depending on the specific product.

What are mortgage term and amortization period in Canada?

The amortization period is the total length of time it will take to pay off the entire mortgage (e.g., 25 years). The mortgage term is the shorter period for which the current contract (interest rate, etc.) is in effect (e.g., 5 years). At the end of the term, you must renew the mortgage for another term until the loan is fully amortized.

What is the Canadian mortgage stress test?

The stress test requires that borrowers must qualify for a mortgage at a higher 'qualifying rate' than their actual contract rate. This rate is typically the greater of the Bank of Canada's benchmark rate (often 5.25%) or your contract rate plus 2%. This ensures borrowers can still afford their mortgage if interest rates rise in the future.

Is this mortgage calculator accurate?

This calculator provides accurate estimations based on the standard formulas for Canadian mortgages and simplified CMHC rules. However, it is for informational purposes only. Official figures can vary slightly between lenders due to different compounding policies or fee structures. Always consult with a financial institution for exact figures and advice.

Canadian Mortgage Calculator

0 Comments

Canadian Mortgage Calculator – CMHC, Payments & Amortization

Canadian Mortgage Calculator

Load Example Scenario

Mortgage Details

Home Price

Down Payment

Interest Rate

Amortization Period

Years

Payment Frequency

Advanced Options

Mortgage Term

Years

Start Date

Finance CMHC premium into mortgage

Simplified CMHC table — consult lender for full rules and >$500k exceptions.

Prepayments

One-time Lump Sum

Recurring Extra Payment

Escrow / Total Outlay

Property Tax (Annual)

Home Insurance (Annual)

Condo Fees (Monthly)

Stress Test

Annual Income (Optional)

This calculator uses simple periodic conversion r = annual/m and simplified CMHC rates — it is for estimation only.

Scheduled Payment

Principal & Interest:

Total Outlay (with escrow):

Total Mortgage Principal:

CMHC Premium:

Total Interest Paid:

Total Cost of Mortgage:

Payoff Date:

Stress Test Qualifying Payment:

Balance Over Time

Amortization Schedule

#	Date	Begin Bal.	Payment	Interest	Principal	Extra	End Bal.

Settings & Utilities

Display & Export

Rounding Decimals

Locale & Currency

Compatibility Mode (for Blogger/WordPress)

Admin: Rate Configuration

Changes are saved to your browser's local storage.

Stress Test Rate (%)

CMHC Rates (Down Payment % >= value)

15% 10% 5%

Bulk Prepayments (Paste from CSV)

Paste data (format: period,amount)

Calculatorie.com

Choose Your Language

Canadian Mortgage Calculator