Mortgage calculator, the Canadian way.

Fixed-rate mortgages in Canada compound twice a year, not monthly, so the payment is a little lower than a US-style calculator shows. This calculator uses the Canadian method.

You pay half of the monthly payment every two weeks. That is 26 half-payments a year, the same as 13 monthly payments, so the mortgage is paid off years sooner and the interest is lower.

Lenders look at two ratios. Housing costs against gross income, and all debt payments against gross income. Common guideline limits are 39 percent and 44 percent, tested at a qualifying rate above your actual rate. The limits are yours to change in the calculator, and each lender sets its own.

The usual minimum is 5 percent of the first CAD 500,000 and 10 percent of the rest, and 20 percent once the price reaches CAD 1.5 million. Below 20 percent down, mortgage default insurance is added to the loan. Confirm the current rules with your lender or broker.

No. It is arithmetic to help you plan. A mortgage broker or lender confirms what you qualify for. We handle the tax side: the paperwork a lender asks for, rental income, and what a purchase means for your return.