In Canada, interest is compounded semiannually with payments made monthly. This results in a different monthly mortgage factor than that used in the United States and preprogrammed 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.
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HP 12c Calculator  Calculating Canadian Mortgages
Information
The keystrokes to calculate the Canadian Mortgage factor are as follows:

Press [f], CLEAR [FIN], [g], then END.

Key in 6 and press [n].

Key in 200 and press ENTER, then PV.

Key in the annual interest rate as a percentage and press [+], CHS, then FV.

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 30year 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, [+], CHSFV, 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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