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HP 12c Calculator - Calculating Canadian Mortgages

Introduction
In Canada, interest is compounded semi-annually with payments made monthly. This results in a different monthly mortgage factor than that used in the United States and pre-programmed into the HP 12c calculator. This difference can be handled by the addition of a few keystrokes. For any problem requiring an input for [i], the Canadian mortgage factor is calculated first, and then this value is entered in for [i], to give the answer for Canada.
Information
The keystrokes to calculate the Canadian Mortgage factor are as follows:
  1. Press [f], CLEAR [FIN], [g], then END.
  2. Key in 6 and press [n].
  3. Key in 200 and press ENTER, then PV.
  4. Key in the annual interest rate as a percentage and press [+], CHS, then FV.
  5. Press [i].
The Canadian mortgage factor is now stored in [i] for future use.
Example of periodic payment amount
What is the monthly payment required to fully amortize a 30-year Canadian mortgage if the interest rate is 9 percent?
Keystrokes (RPN mode)
Display
Explanation
[f], CLEAR [FIN], [g], END, 6, [n], 200, ENTER, PV, 9, [+], CHS FV, then [i]
0.74
Canadian mortgage factor
30, [g], then [12x]
360.00
Total monthly periods in mortgage life
30000, PV, 0, FV, then PMT
-237.85
Monthly payment
Example of number of periodic payments to fully amortize a mortgage
An investor can afford to pay $440 per month on a $56,000 Canadian mortgage. If the annual interest rate is 9.25 percent, how long will it take to completely amortize this mortgage?
Keystrokes (RPN mode)
Display
Explanation
[f], CLEAR [FIN], [g]. END, 6, [n], 200, ENTER, PV, 9.25, [+], CHS, FV, then [i]
0.76
Canadian mortgage factor
440, CHS, then PMT
-440.00
Monthly payment
56000, PV, 0, FV, then [n]
437.00
Total number of monthly payments
Example of effective interest rate (yield) [PV]9.25
A Canadian mortgage has monthly payments of $612.77 with a maturity of 25 years. The principal amount is $75,500. What is the annual interest rate?
Keystrokes (RPN mode)
Display
Explanation
[f], CLEAR [FIN], [g], END, 25, [g], [12x], 612.77, CHS, PMT, 75500, PV, then [i]
0.72
Canadian mortgage factor
6, [n], 0, PMT, 200, CHS, PV, FV, RCL, PV, then [+]
8.75
Annual interest rate.
Example of balance remaining at end of specified period
A Canadian mortgage has monthly payments of $612.77 at 8.75 percent interest. The principal amount is $75,500. What will be the outstanding balance remaining at the end of 10 years?
Keystrokes (RPN mode)
Display
Explanation
[f], CLEAR [FIN], [g], END, 6, [n], 200, ENTER, PV, 8.75, [+], CHS, FV, then [i]
0.72
Canadian mortgage factor
612.77, CHS, PMT, 10, [g], [12x], 75500, PV, then FV
-61,877.18
Outstanding balance remaining at the end of 10 years.

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