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Canadian mortgage math

Mortgage calculators that use the right formula

Canadian fixed mortgages compound semi-annually, not monthly. Most online calculators use the American formula and quietly overstate your payment. These do not.

The formula. For a Canadian fixed-rate mortgage the periodic rate is (1 + annual rate ÷ 2)2÷n − 1 where n is payments per year, and the payment is P × r ÷ (1 − (1 + r)−N). Every calculator on this site uses it.

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A calculator uses assumptions. A broker uses your actual credit, income and property — and comes back with a real rate from a real lender.

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