Choose a country
Choose a city
Choose a city
Choose a language
Select country
Choose a country
United States
Việt nam

CMHC mortgage calculator

CMHC mortgage calculator online in Canada in 2022. How to figure out a mortgage loan yourself?

Your city
TD Bank TD Bank
TD Bank TD Bank
Royal Bank of Canada Royal Bank of Canada
Scotiabank Scotiabank
Bank of Montreal Bank of Montreal
Canadian Imperial Bank Of Commerce (CIBC) Canadian Imperial Bank Of Commerce (CIBC)
Tangerine Bank Tangerine Bank
ATB Financial ATB Financial
Coast Capital Savings Coast Capital Savings
Calculation according to the real estate value
Calculation according to the loan amount
Calculate the mortgage
CMHC mortgage calculator CMHC mortgage calculator CMHC mortgage calculator CMHC mortgage calculator CMHC mortgage calculator
Loan amount

Loan amount

50000 $
4000000 $
Down payment

Specify the percentage of the down payment

Your loan amount
Loan term

Specify the loan term for the calculation

Interest rate

Choose the interest rate on the loan

0.4 %
6 %
Type of payments

Specify the type of payment for calculating

Fill out an application for a mortgage!
Fill out an application for a mortgage!

Take advantage of our mortgage selection system with a free credit rating check!

What is the CMHC mortgage calculator?

Canada Mortgage and Housing Corporation (CMHC) is a Crown corporation governed by a Board and responsible to Parliament through a Minister. It has been helping Canadians meet their housing needs for more than 70 years.

CMHC provides such services as federal funding for housing programs, financial aid programs, and information assistance for home buyers. It contributes to the stability of the housing market and financial system.

The corporation is widely known for its default mortgage loan insurance. It is not the same as mortgage protection insurance or mortgage life insurance. CMHC mortgage insurance is mandatory for home buyers who can't afford down payments of more than 20% of the home price. If a borrower defaults on a mortgage, default insurance protects the lender.

Attention! Mortgage default insurance is calculated as a percentage applied to your mortgage amount.

If a home's purchase price is less than $500,000, your minimum down payment should be at least 5%. A property that costs between $500,000 and $999,999, requires a minimum down payment of 5% on the first $500,000 of the purchase price, and 10% for the remaining portion of the home price.

But there is no mortgage loan insurance for a home that costs $1 million or more and a CMHC mortgage is unavailable for such property.

The maximum amortization period for mortgages with less than 20% down payment is 25 years.

Mortgage default insurance is commonly referred to as CMHC insurance (even a mortgage insurance calculator is known as a CMHC insurance calculator), but actually, you may also purchase mortgage default insurance from two private companies in Canada: Sagen (formerly Genworth Financial) and Canada Guaranty.

These mortgages are assumed as high ratio mortgages and CMHC charges the insurance premium to banks and other financial institutions, which pass the costs on to borrowers. The costs are usually automatically calculated by your lender.

There might be the option to pay a mortgage default insurance premium in a lump sum, but often the premium is added to the mortgage balance, and you pay it off over the life of the loan. In Ontario, Manitoba, and Quebec you must pay provincial sales tax charged upfront and considered as closing costs, not as part of the mortgage principal.

The CMHC insurance premium costs are specified in your mortgage agreement, but with a mortgage insurance calculator, you can compute it by yourself in advance to know what you could face. The calculations are based on the home purchase price and down payment. Promotional sales taxes for your province may be calculated as well.

You may find three online calculators for home buyers on the CMHC website: mortgage calculator, affordability calculator, and debt service calculator.

  1. The mortgage calculator lets you compare rates, payment frequencies, total interest paid, monthly repayments, CMHC insurance premiums, and the amortization period of different mortgage offers to find the one which suits your financial goals and strategy.

  2. The affordability calculator is designed to estimate how much mortgage you can borrow. The higher your mortgage affordability, the more expensive property you can purchase. Affordability is based on your down payment, household income, mortgage total monthly debt payments, and monthly expenses. Therefore, any calculating affordability tool computes the full home price you may afford and the money left for a living.

  3. The debt service calculator is made to find Gross Debt Service (GDS) ratio and Total Debt Service (TDS) ratio that are crucial to understanding lenders' assessment and starting the mortgage process.

It compares your monthly debt payments and housing expenses to your gross household income.

GDS is the percentage of your monthly household income that covers your housing costs. It must not exceed 39%.

Gross Debt Service Ratio Formula:

Mortgage payment (Principal + Interest) + Property Tax + Heating costs + Half of your condo fees (if applicable) / Gross Household Income < 39%

TDS is the percentage of your monthly household income that covers your housing costs and other debts. It must not exceed 44%.

Total Debt Service Ratio Formula:

Mortgage payment (Principal + Interest) + Property Tax + Heating costs + Other Debt Obligations + Half of your condo fees (if applicable) / Gross Household Income < 44%

Why do you need the CMHC mortgage calculator?

CMHC calculators let you calculate your future mortgage payment, total amount, interest, default insurance premium, and premium rates and compare different mortgage options. It also provides you with a visualized amortization plan.

For example, you should know the CMHC insurance premiums to compare mortgage payment amounts, which are calculated as a percentage of the mortgage loan amount divided by the purchase price.

It's rather difficult to calculate all of these manually, while with a calculator, you may only input general info and get the results. For example, you could choose payment frequency, amortization period, and mortgage rates to understand how you could change your mortgage conditions and terms to make it more affordable.

Mortgage calculators are connected. CMHC insurance may be computed manually using the CMHC mortgage insurance calculator. You should know only your home's potential price: you could input different mortgage default insurance premiums, down payment amount (from minimum down payment to maximum), and percentage.

For example, you want to buy a home for $600,000. The minimum down payment percentage is 5% — $30,000. Mortgage default insurance is $22,800. The total mortgage is $592,800. Input these values in the mortgage insurance calculator and compare your options.

If you don't know your monthly mortgage payments, you are free to use a mortgage calculator. With this value, you can determine your TDS ratio and GDS ratio to determine if you comply with lenders' mortgage affordability criteria.

The down payment amount has a crucial effect on your total purchase price and mortgage. Using the calculator, you could change a down payment as a calculation component to understand how the CMHC insurance premium, interest, monthly payments, and mortgage amounts are changing.

With a down payment of more than 20% of the home purchase price, you won't pay insurance premiums, but the mortgage rates will be higher. If you make a more significant down payment (but less than 20%), you will also have a reduced CMHC insurance and monthly payment. More extended amortization periods also allow borrowers to make smaller monthly payments but more interest paid over the life of the loan.

If home buyers add mortgage insurance premiums to the mortgage balance, it decreases the proportion of payments that go towards the home's equity. In this situation, increasing a down payment is preferable to reducing monthly payments.

For example, if you want to buy a $400,000 home with a 3% mortgage rate, you borrow for a maximum amortization period for insurable mortgages — 25 years with monthly payments.

  1. Your down payment is $60,000. It's below the 20% purchase price, so the mortgage insurance premium is $9,520.00 (the rate is 2.80%). The monthly payment amount is $1,654.09, the mortgage amount is $349,520.00, the interest cost is $146,706.30.

  2. Your down payment is $70,000. It's also below 20%, but CMHC insurance is $9,240.00 (rate is 2,80%). The monthly payment is lower — $1,605.44, which makes the loan more affordable. Mortgage amount is $339,240.00 and interest cost decreases to $142,391.41.

  3. Your down payment is $100,000. It's 20% of your home price, so you aren't obligated to have mortgage insurance. Mortgage payments are only $1,419.74 per month, and the mortgage total is $300,000.00.

But let's assume that if you don't have CMHC insurance, the lender won't be secured if a borrower stops making payments. The interest rate is up to 4%. Mortgage payments are significantly raised to $1,578.06 per month, ending with more interest —$173,418.18, while the mortgage amount is still $300,000.00.

You may find the mortgage option which fits your budget and will be preferable in your specific situation. Contact licensed mortgage brokerage to review all mortgage solutions.

How to use the CMHC mortgage calculators?

Make sure you have budget data, finance information, and mortgage details you know.

Input the mortgage details: purchase price (if you don't know the potential price you can afford, use the Affordability calculator first), down payment, and amortization period.

Fill out mortgage terms: interest rate and payment frequency.

You will need mortgage insurance if your down payment is under 20% of the purchase price. The CMHC insurance premium is automatically determined by the tool and included in the calculations.

The result is your future monthly payment, total mortgage, interest, insurance premiums and rate, and an amortization graph.

You may add another mortgage option for comparison, change values and recalculate or save the calculation.

Choose whether you are going to rent or buy a property.

Fill out your financial information: annual household income (before taxes), down payment, mortgage interest rate, your province or territory.

Enter your monthly expenses (excluding housing expenses): debt repayment, communications, household and family, entertainment and leisure, utilities, medical and health, transportation, and others.

You will get a home price you can afford and a visualization: a diagram of money available for a mortgage, monthly expenses, and money that is left over in percentage.

You may change values and recalculate or save the calculation.

Input your annual household income (before taxes).

Fill out the monthly housing expenses: monthly mortgage payment (if you don't know, you may use the Mortgage calculator first), monthly heating expenses (vary and are determined by your personal needs and home), monthly property taxes (depend on your property market value), monthly condo fees (contact real estate agents or visit the municipality website, if applicable), other rental fees (100%) or homeowner fees (50%).

Enter the monthly debt payments: credit cards, vehicle loans, loans, and lines of credit.

You will get a visualization of your ratio to understand your situation better: does your percentage exceed the minimum ratio needed to afford a mortgage with the income and expenses you have.

You may change values and recalculate or save the calculation.

What is CMHC Mortgage Loan Insurance?

When down payments are less than 20% of the home purchase price, it's considered a high-ratio mortgage. In this case, a borrower must purchase CMHC (Canada Mortgage and Housing Corporation) insurance mortgage default insurance. It is calculated as a percentage applied to your mortgage amount. As a result, mortgage lenders usually offer lower mortgage rates for an insured mortgage, because if a borrower defaults on the mortgage, mortgage default insurance protects lenders.

How are CMHC premiums calculated?

The CMHC Insurance premium is based on the loan-to-value ratio (mortgage amount divided by the purchase price). The higher the ratio, the higher the percentage you will pay in insurance premiums. It varies from 0,60% to 4%.

How much do I need to make to buy a 500K house in Canada?

You should have an approximate annual income of $120,000 to afford a $500,000 mortgage in Canada for 25 years.