Free mortgage calculator
Enter the price, your down payment, the rate and the amortization to see your payment, the interest over the whole mortgage and what you owe after five years. Switch between Canadian and US compounding and compare monthly with accelerated bi-weekly payments.
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How a Canadian mortgage payment is calculated
The payment is set so that equal payments pay the mortgage off exactly at the end of the amortization period. The calculator uses the usual formula and rounds to the cent at each payment.
In Canada, fixed-rate mortgages must compound interest no more often than semi-annually, so the quoted rate is converted to the rate for one payment period as (1 + rate ÷ 2)2 ÷ payments per year − 1. Variable-rate mortgages and mortgages in the United States normally compound monthly, which is why both options are offered above.
Monthly, bi-weekly and accelerated payments
A monthly payment is made 12 times a year. A bi-weekly payment is made every two weeks, 26 times a year, and is calculated for that schedule, so it is a little lower than half the monthly payment. An accelerated bi-weekly payment is exactly half of the monthly payment, still made 26 times a year. Because 26 half payments equal 13 monthly payments, you make one extra monthly payment every year without noticing, and the mortgage is paid off years sooner. The same idea applies to accelerated weekly payments.
Down payment and mortgage insurance
A larger down payment means a smaller mortgage and less interest. In Canada a down payment under 20% of the price generally requires mortgage default insurance, and the premium is a percentage of the mortgage that depends on how much you borrow compared with the price. Typical premiums range from about 2.8% to 4.0%, with a small surcharge for amortizations longer than 25 years. The estimate here is added to the mortgage, as is usual. Rates, limits and rules change, so ask your lender for your actual premium.
Frequently asked questions
Why is my Canadian mortgage payment different from a US calculator?
Canadian fixed-rate mortgages compound semi-annually, while most US calculators compound monthly. At the same quoted rate, the Canadian method gives a slightly lower payment. Choose the compounding that matches your mortgage.
What is the balance after 5 years?
Many Canadian mortgages have a five-year term, after which you renew. The balance after 5 years is what you would still owe at renewal, and the interest in the first 5 years is what the term cost you.
Does this include land transfer tax or closing costs?
No. Budget separately for closing costs, which often include legal fees, land transfer tax, a home inspection and moving costs.
Read the guides
Track the real numbers
Once you have a mortgage, the mortgage tracker in Budget Dashboard follows the real payments from your bank file, projects the payoff date and shows what extra payments would change. Free, and your data stays in your browser.
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These calculators give estimates for planning and learning. They are not financial, tax or legal advice, and real lenders, banks and tax rules can differ. Check the numbers with your lender or a qualified professional before you decide.
Published by Budget Dashboard. Questions or corrections? Contact us.