Calculate your exact monthly payments instantly. Features built-in CMHC insurance math and precise Canadian semi-annual compounding.
Everything you need to know about calculating your mortgage, CMHC insurance, and Canadian compounding rules.
Unlike mortgages in the US which are compounded monthly, Canadian fixed-rate mortgages are legally required to be compounded semi-annually (twice a year). This slightly lowers the effective monthly interest rate compared to an identical US rate.
The minimum down payment depends on the purchase price of the home. For homes under $500,000, the minimum is 5%. For homes between $500,000 and $999,999, it is 5% on the first $500k, and 10% on the remainder. Homes $1 million or over require a strict 20% minimum down payment.
Yes, significantly. A larger down payment reduces the total principal amount you need to borrow. Furthermore, if you put down 20% or more, you avoid paying the mandatory CMHC insurance premium, which lowers your total loan amount even further.