US mortgage formula
The US and, in fact, nearly every other country of the world compound the rates by payment periods.
Canadian mortgage formula
The Canadians do not calculate their mortgage payments the same way as the rest of the world. The US and, in fact, nearly every other country of the world compound the rates by payment periods. Not so in Canada. Over there, the rates are compounded semi-annually.
In order to get the correct canadian interest calculations we have to adjust everything to our payment cycle, which implies that we also have to adjust the period to our payment cycle
