Can You Afford This Home in Canada?

About This Calculator

This Canadian mortgage calculator uses the legally required semi-annual compounding formula (Interest Act of Canada) to compute monthly payments accurately. Unlike US mortgage calculators that use monthly compounding, Canadian mortgages convert the quoted annual rate to an effective monthly rate as (1 + rate/2)^(1/6) − 1. CMHC insurance premiums (4.0%, 3.1%, or 2.8% of the loan depending on down payment tier) are automatically added to the insured loan when the down payment is below 20%. The Canadian mortgage stress test (max of contract rate + 2% or 5.25%) is calculated, along with the qualifying annual income using a 39% GDS ratio.

The Amortization tab renders a stacked area chart of cumulative principal (accent) and cumulative interest (red) over the full amortization period, and a line chart of the declining balance — both updated dynamically. The Scenarios tab shows a bar chart of total interest by amortization period (10–30 years) and a bar chart of monthly payment by period, with amortization comparison table. The Stress Test tab shows a dual-line chart of contract payment vs stress test payment across ±2% rate scenarios, a stress test summary card, and the full rate sensitivity table (9 scenarios from −2% to +2% in 0.5% steps).

Mortgage score (0–100) penalises low down payment (CMHC cost), high payment-to-income ratio, large stress test payment increase, high CMHC premium dollar amount, and long amortization on insured loans. Dynamic accent: emerald (Strong Position ≥80), indigo (Manageable ≥65), amber (Stretched ≥50), orange (High Risk ≥35), red (Overextended). Down payment percentage is displayed live in the input area (colour-coded amber for CMHC-required, green for 20%+). First-time homebuyer programs panel (HBP, FHSA, tax credits) appears when the first-time buyer checkbox is checked.