How the standard Canadian mortgage calculators on this site are calculated
For standard Canadian fixed-rate mortgage calculations, the quoted nominal annual rate is converted using semi-annual compounding before deriving the equivalent rate for the selected payment frequency. This avoids the common but inaccurate shortcut of simply dividing the quoted annual rate by 12, 26 or 52.
Monthly, semi-monthly, bi-weekly and weekly schedules use the equivalent periodic rate and the corresponding number of payments. Accelerated bi-weekly and accelerated weekly payments are treated separately because they intentionally pay more principal over a year than the equivalent regular frequency.
The payment and affordability tools apply the current federal minimum down-payment structure for insured purchases: 5% on the first $500,000, 10% on the portion above $500,000 for homes below $1.5 million, and at least 20% for homes priced at $1.5 million or more under the standard insured-purchase rules. Mortgage-insurance premium estimates use published CMHC schedules as a planning reference; actual insurer eligibility and premiums are determined by the lender/insurer.
The standard affordability/stress-test tools use the greater of the contract rate plus 2 percentage points or 5.25% when the federal minimum qualifying rate applies. For CMHC-style planning, maximum GDS/TDS thresholds are 39% and 44%, and 50% of condominium fees are included in the debt-service calculation. Lenders may apply stricter criteria.
The land-transfer-tax calculator uses provincial/territorial and, where relevant, municipal formulas and rebates or credits that can be represented reliably in a national tool. Some jurisdictions use assessed/fair-market value rather than purchase price alone. Nova Scotia municipal deed-transfer-tax rates vary by municipality, so the calculator asks the user for the local rate.
The mortgage-vs-rent calculator is a scenario model. Results depend heavily on assumptions such as home appreciation, investment return, rent growth, maintenance and transaction costs. It reports projected outcomes under the values entered; it does not predict which choice will outperform in the future.
The Future Home Fund is intentionally separate from the standard mortgage-qualification calculators. It is a special conceptual simulator tied to an educational book/idea and uses its own assumptions. Its methodology should not be interpreted as lender qualification criteria.
Methodology last reviewed: September 30, 2026.