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    Mortgages / Canada

    Canadian Mortgage Calculator

    Canadian mortgages quote a nominal rate compounded semi-annually, not monthly. The payment is therefore slightly higher than the same quoted rate would give in the US, and this calculator converts properly.

    Monthly payment$3,576Effective monthly rate0.4328%US-equivalent payment$3,595
    Monthly payment
    $3,576
    Semi-annual compounding
    Effective monthly rate
    0.4328%
    Converted from semi-annual
    US-equivalent payment
    $3,595
    If it compounded monthly
    Difference
    -$19.98
    Per month
    Payment by rate
    The quoted rate compounds semi-annually; the payment is monthly.
    Payment by rate
    Quoted rateMonthly payment
    3%$2,839
    4%$3,156
    5%$3,490
    6%$3,839
    7%$4,202
    Inspect the model
    Choose a quick result view, a scaled comparison, or the complete diagnostic set.
    Payment against quoted rate
    A quarter point is real money on a 25-year amortisation.
    Payment against quoted rate0.000941.361882.722824.073765.434706.793%3%4%4%5%5%6%6%7%7%Canadian Mortgage Calculator
    Canonical equations
    The exact relationships implemented by this engine.

    i = (1 + r/2)^(2/12) − 1 · The Canadian convention.

    M = P·i/(1 − (1+i)^−n) · Monthly, over the amortisation.

    finance methodology

    A clear path from inputs to results.

    Canadian mortgages quote a nominal rate compounded semi-annually, not monthly. The payment is therefore slightly higher than the same quoted rate would give in the US, and this calculator converts properly.

    Step-by-step methodWorked exampleAssumptions explained

    How to use

    1. Set mortgage amount ($).
    2. Set quoted rate, semi-annual (%).
    3. Set amortisation (years).
    4. Read the headline metrics, then check the table for the detail.

    The formula

    i=(1+r/2)(2/12)−1i = (1 + r/2)^(2/12) − 1

    Reference: Interest Act (R.S.C. 1985, c. I-15) s. 6: nominal rate compounded semi-annually, paid monthly.

    Worked example

    At the default inputs

    Inputs
    • Mortgage amount ($): 600000; Quoted rate, semi-annual (%): 5.25; Amortisation (years): 25
    Calculation path
    1. 1

      Monthly payment: $3,576 · Effective monthly rate: 0.4328% · US-equivalent payment: $3,595 · Difference: -$19.98

    Result

    Monthly payment: $3,576 · Effective monthly rate: 0.4328% · US-equivalent payment: $3,595

    Interpreting the result

    At 5.25% semi-annual over 25 years, the payment is $3,576.

    Assumptions & limitations

    • Fixed rate for the amortisation.
    • No CMHC insurance premium.

    Frequently asked questions

    Why is the payment higher than the quoted rate suggests?

    Semi-annual compounding gives a higher effective rate than monthly at the same nominal figure.

    Does the US do this?

    No — US mortgages compound monthly, so the same quoted rate gives a slightly lower payment.

    Methodology last reviewed 2026-10-22. Results are informational and not financial or engineering advice — see our disclaimer.