# Canadian Mortgage Calculator

> Calculate Canadian mortgage payments with semi-annual compounding for monthly, bi-weekly, weekly and accelerated schedules, with payoff time and total interest.

Category: Finance · Applies to: CA · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/canadian-mortgage-calculator

Canadian fixed-rate mortgages are usually compounded semi-annually, not monthly, because the Interest Act requires the rate to be stated yearly or half-yearly. That makes the payment slightly lower than a US-style calculation at the same quoted rate.

Also called: Mortgage payment calculator (Canada).

## Inputs
- Purchase price (default 600000)
- Down payment (unit %; default 20)
- Interest rate (per year) (unit %; default 5)
- Amortization period (unit years; default 25)
- Payment frequency (options: Monthly, Semi-monthly (24 a year), Bi-weekly (26 a year), Accelerated bi-weekly, Weekly (52 a year), Accelerated weekly; default monthly)
- Compounding (options: Semi-annual (fixed rate), Monthly (some variable rates); default semi_annual)
- Mortgage default insurance premium (unit % of loan; default 0; optional)
- Currency

## Results
- Payment per period
- Total mortgage
- Insurance premium added
- Total interest to payoff
- Years to pay off
- Effective annual rate
- Interest rate per payment period

## Formula

```
Effective annual rate = (1 + j ÷ 2)² − 1;  rate per payment i = (1 + EAR)^(1 ÷ p) − 1;  Payment = L × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1). Accelerated bi-weekly = monthly payment ÷ 2 (weekly ÷ 4).
```

Where:
- j: quoted annual rate
- p: payments per year (12, 24, 26 or 52)
- n: amortization years × p
- L: price − down payment + any insurance premium

## Worked example
1. Mortgage = 600,000 × 80% = $480,000.
2. Effective annual rate = 1.025² − 1 = 5.0625%; monthly rate = 1.050625^(1/12) − 1 = 0.412392%.
3. Payment = 480,000 × 0.00412392 × 1.00412392³⁰⁰ ÷ (1.00412392³⁰⁰ − 1) = $2,791.70.

**Result:** A $480,000 mortgage at 5% compounded semi-annually costs $2,791.70 a month over 25 years.

## What the result means

Accelerated bi-weekly or weekly payments add the equivalent of one extra monthly payment a year, which cuts years off the amortization. Plain bi-weekly payments cost about the same as monthly over a year.

## Assumptions and limits
- The rate stays the same for the whole amortization (Canadian terms are usually renewed every 1–5 years at the rate then on offer).
- Fixed-rate mortgages use semi-annual compounding, as is standard under the Interest Act; choose monthly if your lender compounds monthly.
- Maximum amortization periods, insurance eligibility and premium rates are set by insurers and federal rules; enter your lender’s figures.
- Provincial sales tax on insurance premiums and land transfer tax are not included.

## Questions

### Why is Canadian mortgage interest compounded semi-annually?

Section 6 of the federal Interest Act requires blended-payment mortgages to state the rate calculated yearly or half-yearly, not in advance; lenders conventionally quote fixed rates compounded half-yearly.

### What is the difference between bi-weekly and accelerated bi-weekly?

Bi-weekly spreads the yearly total of monthly payments over 26 payments. Accelerated bi-weekly pays half the monthly amount every two weeks, so you pay 13 monthly payments’ worth a year and finish sooner.

## Sources
- [Interest Act (R.S.C., 1985, c. I-15), section 6](https://laws-lois.justice.gc.ca/eng/acts/I-15/section-6.html)

## Related calculators
- [Mortgage Calculator](https://calculators.geekmidst.com/calculators/mortgage-calculator)
- [Mortgage Amortization Calculator](https://calculators.geekmidst.com/calculators/mortgage-amortization-calculator)
- [Down Payment Calculator](https://calculators.geekmidst.com/calculators/down-payment-calculator)

_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/canadian-mortgage-calculator