Canadian Mortgage Calculator: how it works
The Canadian Mortgage Calculator, at mortgage.chowchowlabs.ca, is a set of seven calculators built around Canadian mortgage rules, not American ones. This page explains why that matters, what each calculator does, and how we keep the numbers right.
Why a Canadian calculator
Many mortgage calculators online are built for the US, and their numbers are off for Canada in ways that add up. Canadian fixed-rate mortgages compound interest twice a year, not monthly, so the same quoted rate gives a slightly lower payment here. Canada also has its own minimum down payment rules, mortgage default insurance when you put down less than 20%, a stress test for qualifying, and land transfer tax that depends on where you buy. Our calculators build all of that in.
The seven calculators
| Calculator | What it answers |
|---|---|
| Mortgage payment | Your payment at every frequency, with insurance and down payment rules applied and anything a lender wouldn’t accept flagged. |
| Compare mortgages | Two or more offers side by side: rate, amortization, term, frequency and down payment, with the difference per month and per year. |
| Affordability | The highest price you could qualify for under the stress test and the GDS and TDS debt limits, and which limit is holding you back. |
| Land transfer tax | Provincial and Toronto municipal tax with first-time buyer rebates, for the provinces we support. |
| Renewal | How a new rate changes your payment when your term ends, and where you’ll stand at the next renewal. |
| Refinance | The equity you could access, the new payment, and when breaking your mortgage pays off after the penalty. |
| Prepayment | How much interest and time extra payments and lump sums save. |
How the numbers are calculated
Payments use the standard Canadian method: the yearly rate is converted to a rate per payment with semi-annual compounding, then applied to the loan. Accelerated biweekly and weekly payments are handled the way Canadian lenders do them, so they really do shorten your mortgage, while regular biweekly and weekly payments don’t. Variable rates use monthly compounding, and the rate you enter is held for the whole projection, which is a snapshot, not a forecast.
Insurance premiums, down payment minimums and the stress test come from CMHC and OSFI rules, and each one is dated to when it took effect. Land transfer tax is calculated for Ontario (including Toronto), British Columbia, Manitoba, Alberta and Saskatchewan. Where we don’t yet have a province’s rules, the calculator says so instead of guessing. The full method is on the methodology page.
What’s free
Every calculator and its main answer is free, with no account: payments, insurance, the principal and interest split, and the first two years of the amortization schedule. Optional Premium, as a monthly plan or a one-time lifetime purchase, adds the full schedule payment by payment with CSV download, term and lifetime totals, the payoff date, and removes ads.
Languages
The whole site is available in English, French, and Simplified and Traditional Chinese.
Learn more
Our guide to the real cost of buying a home in Canada adds up insurance, the tax on it, land transfer tax and the stress test for a $700,000 home. The site’s own learning centre explains terms such as amortization, term and prepayment privileges in plain language.
Try it
Open the Canadian Mortgage Calculator or get the iPhone app.
Sources
- Financial Consumer Agency of Canada, Down payment rules
- CMHC, mortgage loan insurance premiums and debt service limits
- OSFI, Guideline B-20 minimum qualifying rate
- Government of Ontario, Calculating land transfer tax
These calculators give estimates for planning. They aren’t financial advice or a mortgage approval. Your lender’s rate, fees, penalties and qualifying rules decide your actual numbers.