How Canadian mortgage payments are worked out
Payment = mortgage × i ÷ (1 − (1 + i)^−number of payments)
Fixed-rate mortgages in Canada are quoted with semi-annual compounding (the Interest Act requires the rate to be stated yearly or half-yearly), so the monthly rate is slightly lower than the annual rate divided by 12. Accelerated bi-weekly payments are half the monthly payment every two weeks: 26 half payments equal 13 monthly payments a year, which shortens the amortization.
CMHC mortgage insurance premiums
| Down payment | Loan-to-value | Premium on the loan |
|---|---|---|
| 5% to 9.99% | 90.01% to 95% | 4.00% |
| 10% to 14.99% | 85.01% to 90% | 3.10% |
| 15% to 19.99% | 80.01% to 85% | 2.80% |
| 20% or more | 80% or less | Not required |
Insurance is required with less than 20% down and is available for homes up to $1.5 million. The minimum down payment is 5% of the first $500,000 and 10% of the part above it.
Monthly payments over 25 years
| Mortgage | 4.0% | 4.5% | 5.0% |
|---|---|---|---|
| $400,000 | $2,104.08 | $2,213.89 | $2,326.42 |
| $500,000 | $2,630.10 | $2,767.36 | $2,908.02 |
| $600,000 | $3,156.12 | $3,320.84 | $3,489.63 |
| $800,000 | $4,208.16 | $4,427.78 | $4,652.84 |
Worked example
A $700,000 home with $70,000 (10%) down needs a $630,000 loan. The CMHC premium is 3.10%, or $19,530, added to the mortgage: $649,530. At 4.5% over 25 years that is $3,594.97 a month. Paying the accelerated bi-weekly amount of $1,797.49 clears it in about 21 years 8 months.
Sources: CMHC mortgage loan insurance premiums; Government of Canada, minimum down payment rules.
Budget for closing costs too: see the land transfer tax calculator.
Frequently asked questions
What is the payment on a $600,000 mortgage in Canada?
At 4.5% over 25 years, about $3,321 a month with semi-annual compounding.
How much is CMHC insurance with 10% down?
3.10% of the loan. On a $630,000 loan that is $19,530, usually added to the mortgage.
What is the minimum down payment in Canada?
5% of the first $500,000 and 10% of the rest up to $1.5 million; 20% for homes of $1.5 million or more.
Is accelerated bi-weekly better?
It pays the equivalent of one extra monthly payment each year, which on a 25-year mortgage typically cuts about 3 to 4 years off.
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Last updated October 2026.