What is CMHC insurance and when do I need it?

In Canada, mortgage default insurance (CMHC and other insurers) is required when you put down less than 20%. The premium is a percent of the mortgage, tiered by your down payment, and it is added to the loan so you pay interest on it. Homes over $1,000,000 and amortizations over 25 years cannot be insured, so they require 20% down.

What is PMI, and how is it different from CMHC?

In the US, conventional loans under 20% down carry private mortgage insurance (PMI), paid monthly. Unlike CMHC's one-time premium, PMI cancels automatically once you have paid the balance down to 80% of the home's value. FHA loans use their own insurance (an upfront fee plus an annual premium), while VA and USDA loans use a funding or guarantee fee instead.

What is the mortgage stress test?

Canadian lenders qualify you at a higher rate than your actual one: the greater of your contract rate plus 2% or 5.25%. This checks you could still afford the payment if rates rose. The US has no mandatory stress test; lenders qualify on your debt-to-income ratios instead.

How much mortgage can I afford?

Lenders cap your housing cost and total debt as a share of gross income. Canada uses GDS (housing at or under 39%) and TDS (all debt at or under 44%). The US uses front-end and back-end DTI, leading with the back-end (often around 43%). The calculator computes these on your full monthly housing cost, including property tax and insurance, and shows the most you could borrow comfortably.

Why do Canadian and US payments differ at the same rate?

Canadian mortgages compound semi-annually by law, while US mortgages compound monthly. At the same posted rate, the Canadian effective rate is slightly lower, so the payment is a touch smaller. The calculator handles each correctly.

Does paying extra on my mortgage help?

Yes. Any extra payment goes straight to principal, so you stop paying interest on that amount for the rest of the loan. The calculator draws a second line comparing your payoff with and without the extra, and shows how many years and how much interest it saves.

Calculators / Mortgage

A taste of the engine

Mortgage Calculator

The real cost of a home, in Canada or the US: your payment, the insurance you actually pay, whether a lender would say yes, and what it all adds up to. Computed to the cent, with each country's own rules.

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The home

Home price

Down payment10.0% down (under 20%, so insurance applies)

The mortgage

Extra per payment (optional)Anything extra goes straight to principal and shortens the loan.

Property tax / yr

Home insurance / yr

Condo fees / mo

Heat / mo

Can you afford it?

Household income / yr (before tax)

Province

Your payment

$3,436

per month

All-in monthly

$4,023

tax, insurance, heat

Total interest

$427,698

over 25 years

CMHC insurance

Required when you put less than 20% down. The premium (3.10% of the mortgage) is added to your loan, so you pay interest on it too.

Premium added to your loan$18,135

Insurance over the loan$18,135

Can you afford it?Over the limit

Lenders qualify you at the stress-test rate (6.79%, the higher of your rate + 2% or 5.25%), and cap two ratios.

Housing (GDS) limit 39%43.7%

All debts (TDS) limit 44%43.7%

Most you could borrow comfortablyabout $588,014

What you still owe
Series	Label	Value
Balance owing	Now	$603,135
Balance owing	Year 1	$590,230
Balance owing	Year 2	$576,699
Balance owing	Year 3	$562,512
Balance owing	Year 4	$547,637
Balance owing	Year 5	$532,041
Balance owing	Year 6	$515,690
Balance owing	Year 7	$498,545
Balance owing	Year 8	$480,570
Balance owing	Year 9	$461,724
Balance owing	Year 10	$441,963
Balance owing	Year 11	$421,245
Balance owing	Year 12	$399,523
Balance owing	Year 13	$376,748
Balance owing	Year 14	$352,869
Balance owing	Year 15	$327,832
Balance owing	Year 16	$301,581
Balance owing	Year 17	$274,059
Balance owing	Year 18	$245,202
Balance owing	Year 19	$214,946
Balance owing	Year 20	$183,223
Balance owing	Year 21	$149,963
Balance owing	Year 22	$115,091
Balance owing	Year 23	$78,528
Balance owing	Year 24	$40,193
Balance owing	Year 25	$0

What this home really costs

Down payment$65,000

Mortgage borrowed$585,000

CMHC premium (added to the loan)$18,135

Interest over 25 years$427,698

Closing costs (estimate)$12,475 to $27,050

Total to own it outright$1,115,596

Closing costs, beyond the down payment

One-time costs at closing, led by land transfer tax. The higher land-transfer figure includes the Toronto or Montreal municipal surcharge.

Land transfer taxOntario, with the Toronto municipal land transfer tax shown as the higher figure.$9,475 to $18,950

Legal and titleLawyer or notary, title insurance, registration.$1,500 to $3,000

Home inspection and appraisal$500 to $1,100

Moving and setup$1,000 to $4,000

Estimated total$12,475 to $27,050

This is a broad estimate. A lender judges your whole file.

This calculator only knows the handful of numbers you typed. Approval really turns on far more: your credit score, every debt you carry and what kind it is (revolving credit like cards weighs against you differently than a fixed loan), your verified income, and how you spend month to month. FinPal works from that complete picture, shows you exactly how a lender would read you, and gives you simple, specific steps to get to yes.

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No AI. Hand-crafted math.Your data stays yours.We never move your money.Canada and the US, done right.