Canada Mortgage Calculators & Guides
Free, transparent tools for Canadian homeowners based on OSFI Guideline B-20, FCAC regulations, and Bank of Canada data. Understand your prepayment privilege, IRD penalties, and payoff options.
Canadian Mortgage Tools
Canadian mortgages use different rules than US or UK loans. Federal regulations under OSFI require lenders to offer annual prepayment privileges, but charge Interest Rate Differential (IRD) or 3-month interest penalties if you break your term. Use our tools to calculate exact costs.
Mortgage Prepayment Calculator →
Calculate your 20% annual prepayment privilege and see if IRD or 3-month interest penalty applies. Uses current Bank of Canada 5-year posted rates.
- ✓ Checks 15-20% annual privilege by lender
- ✓ Calculates IRD vs 3-month interest automatically
- ✓ OSFI B-20 compliant formulas
Mortgage Penalty Calculator
Estimate IRD penalty if you break your mortgage to refinance. Coming soon.
Porting Savings Calculator
See how much you save by porting your mortgage vs paying IRD. Coming soon.
Key Canadian Mortgage Rules You Must Know
All guides below cite FCAC and OSFI primary sources.
20% Prepayment Privilege
Federally regulated lenders must allow 10-20% of the original mortgage amount prepaid annually without penalty. Big 5 banks: 15-20%. Credit unions: often 20%. This resets on your anniversary date. Full privilege guide →
IRD Penalty Explained
Interest Rate Differential = (Your Rate - Current Posted Rate) × Balance × Time Left. You pay this OR 3-month interest, whichever is greater. If rates dropped, IRD can be $20,000+. IRD examples →
Porting Your Mortgage
Transfer your existing rate to a new property to avoid IRD. Must complete within 90-120 days. You can “blend and extend” if you need more money. Porting rules →
Open vs Closed Mortgages
Closed: Lower rate, IRD penalties apply. Open: Higher rate, no penalties, pay off anytime. Most Canadians choose 5-year closed fixed. Compare types →
Canada Mortgage Regulations: Who Governs What
| Regulator | Role | What They Control |
|---|---|---|
| OSFI | Prudential Regulator | B-20 underwriting rules, stress test, prepayment standards for banks |
| FCAC | Consumer Protection | Disclosure rules, prepayment penalty calculations, consumer rights |
| Bank of Canada | Monetary Policy | Overnight rate, posted 5-year mortgage rates used for IRD |
| CMHC | Mortgage Insurance | Rules for insured mortgages <20% down payment |
Our Canadian Research Standards
All Canadian content is verified against primary sources:
- OSFI Guideline B-20 (2024) — Residential mortgage underwriting and prepayment privilege minimums
- FCAC: Paying Off Your Mortgage Faster — Official prepayment penalty disclosure rules
- Bank of Canada: Weekly Posted Rates — Used for IRD calculations, updated every Wednesday
- Canadian Bankers Association — Industry-standard prepayment definitions
Disclaimer: I am a software developer, not an FCAC-licensed mortgage professional or OSFI-regulated advisor. This page provides educational information based on public OSFI, FCAC, and Bank of Canada data. It does not constitute financial advice. Your actual prepayment privilege and penalty depend on your specific mortgage agreement. Always verify with your lender and a licensed mortgage broker. Calculations assume standard Canadian 5-year closed fixed terms.
