Housing · 2026 rules

Mortgage payment

Canadian mortgages compound semi-annually, not monthly, and an insured loan carries a premium that is added to the balance. Both are modelled here, along with the payment a lender would actually qualify you at.

  • Payments and total interest
  • CMHC premium by down payment
  • Equity build curve
Your numberslive
$
15% · $112,500
5% · $37,50010% · $75,00020% · $150,00035% · $262,50050% · $375,000
%
Terms
Payment frequency
$

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Monthly payment
$3,515
$655,350 loan at 4.19% over 25 years
Principal and interest only. With property tax and heat, budget about $4,098 a month.
Total interest
$399,182
Over 25 yr
Total cost of the loan
$1,054,532
Principal plus interest
Payoff
25 yr
As scheduled

Mortgage default insurance

Down payment15% of price$112,500
Premium rateBy loan-to-value band2.8%
Premium added to the loan$17,850
Provincial tax on the premiumON, QC and SK tax the premium; it cannot be financed.Payable at closing
Total borrowed$655,350

Balance and interest over time

Outstanding balance against interest paid to date
$0$166,427$332,854$499,280$665,707147101316192225YearBalance owingInterest paid to date
  • Balance owing
  • Interest paid to date

Your first year

How the first twelve months of payments split
  • Interest$26,934
  • Principal$15,247
Equity at five-year marks
Year 5$572,381 still owing$82,969
Year 10$470,297 still owing$185,053
Year 15$344,692 still owing$310,658
Year 20$190,149 still owing$465,201
Year 25$0 still owing$655,350

What a lender will qualify you at

Contract rate4.19%
Qualifying rateThe greater of your rate + 2% and 5.25%6.19%
Payment at the qualifying rate$4,267
Difference to plan for$752
How this is calculated

Canadian fixed-rate mortgages compound semi-annually, so the periodic rate is (1 + r/2)^(2/n) − 1 rather than r/n. Using monthly compounding overstates the payment by a few dollars on a typical loan.

Default insurance is required below 20% down and is unavailable above a $1,500,000 purchase price. The premium is calculated on the loan-to-value band and added to the principal, so you pay interest on it for the life of the mortgage.

Accelerated bi-weekly payments are half the monthly payment taken 26 times a year — the equivalent of one extra monthly payment annually, which is what shortens the amortization.

These results are illustrative estimates based on published 2026 rates and typical lender rules. They are not financial, tax, or legal advice, and they are not a mortgage or credit approval. See the methodology and disclaimer.

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