Calculate your monthly payments with our precise mortgage calculator canada ontario. This tool features specific Ontario settings, including mandatory CMHC insurance calculations for high-ratio loans (less than 20% down) and support for accelerated bi-weekly payments.
Ontario Mortgage Calculator
mortgage calculator canada ontario Formula
Canadian fixed-rate mortgages compound interest semi-annually, not monthly like in the US. This calculator uses the correct Canadian formula for precise accuracy.
Payment = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Variables
- P: Total Loan Amount (Price – Down Payment + CMHC Insurance).
- i: Effective Monthly Interest Rate (derived from semi-annual compounding).
- n: Total number of payments in the amortization period.
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What is the Ontario Mortgage Calculator?
The mortgage calculator canada ontario is tailored for the Ontario market. It automatically calculates Mortgage Default Insurance (often called CMHC insurance) which is mandatory in Canada for down payments between 5% and 19.99%.
It also supports Accelerated Payments, a popular strategy in Canada where you pay slightly more each week or two weeks to shave years off your mortgage term.
How to Calculate Ontario Mortgages (Example)
- Home Price: $600,000.
- Down Payment: 10% ($60,000). This is a “High Ratio” mortgage.
- CMHC Premium: Since down payment is 10%, a 3.10% premium is added to the loan ($16,740).
- Total Loan: $540,000 (Base) + $16,740 (Ins) = $556,740.
- Payment: Calculated on the total loan amount using semi-annual compounding logic.
Frequently Asked Questions (FAQ)
5% for homes under $500k. For homes $500k-$999k, it’s 5% on the first $500k and 10% on the remainder. Homes over $1M require 20% down.
It protects the lender if you default. It is mandatory for down payments under 20% and the premium is added to your mortgage balance.
Ontario charges a provincial LTT on all property purchases. If you buy in Toronto, there is an additional municipal LTT. First-time buyers may qualify for rebates.
It effectively makes one extra monthly payment per year (26 half-payments = 13 full payments), which goes directly to principal, reducing a 25-year amortization to roughly 22 years.