Tools of the Trade – Thomas E. Goebel

Currency Conversion

From USD

To CAD

Mortgage Calculators

Canada

Purchase price $ :

Down payment $ :

Mortgage term (years) :

Interest rate % :

Mortgage amount :

Monthly payment :

Area / Distance Conversion

Tom Goebel August 15, 2020 Log in to Reply

Mortgage payments are slightly different in Canada then they are in the USA. difference is in the compounding convention used for amortization.
Canada is on a semi-annual, meaning 2 times a year compounding calculation while the USA is on a monthly compounding meaning 12 times per year compilation. As an example, Canadian payments $1,426.56 (on 30-year, 4%, $300K loan) are slightly lower than on a USA by $6 in this example ($1,432.25) when doing an amortization schedule.
The bigest difference is not in the minor interest upon interest calculation but on the availability in the USA to get a fixed rate 30 mortgage. In Canada, however almost all mortgages are limited to 5 years or less.