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Canadian mortgages compound interest semi-annually (twice a year), not monthly like US mortgages. This changes the effective rate slightly. Mortgage terms in Canada are typically 1–5 years — not 30 — with the full amortization being 25–30 years. You renew at market rates each term, which introduces renewal risk.

The stress test requires you to qualify at the higher of your contract rate plus 2%, or 5.25%. If your rate is 5%, you must prove you can afford payments at 7%. This applies to all insured mortgages and most uninsured mortgages at federally regulated lenders (banks and trust companies).

CMHC insurance is mandatory when your down payment is less than 20%. It protects the lender — not you — if you default. The premium (2.80%–4.00% of the mortgage amount) is added to your mortgage and repaid with interest over your amortization. To avoid it entirely, you need at least 20% down.

With accelerated bi-weekly payments, you pay half your monthly payment every two weeks — 26 payments per year instead of 24. The extra two half-payments equal one full monthly payment, so you're effectively making 13 monthly payments per year. On a $500,000 mortgage this can save 2–3 years and tens of thousands in interest.

The minimum down payment is 5% for homes up to $500,000. For homes between $500,000 and $999,999, it's 5% on the first $500,000 and 10% on the remainder. Homes over $1,000,000 require a 20% minimum down payment. Putting down 20% or more eliminates the CMHC insurance requirement.