Canadian Mortgage Calculator
Estimate Canadian mortgage payments, with semi-annual compounding and accelerated options.
Why Canadian mortgages are different
By law, the interest rate on a fixed-rate Canadian mortgage is quoted as compounded twice a year, not monthly. Variable-rate mortgages are usually compounded monthly. That changes the payment slightly compared with the US method, so this calculator lets you pick the right one.
Example
For a $600,000 home with $120,000 down, you borrow $480,000. At 4.5% fixed over 25 years, the monthly payment is about $2,657. Paying bi-weekly in the regular way costs about $1,225 each time. Choosing accelerated bi-weekly means paying half the monthly payment, $1,328 every two weeks, which clears the mortgage in about 21.7 years instead of 25.
Payment options
- Monthly: 12 payments a year.
- Bi-weekly: 26 payments a year, each a little less than half the monthly amount.
- Accelerated bi-weekly or weekly: a fixed fraction of the monthly payment, which adds the equivalent of an extra monthly payment each year.
Down payments and insurance
If your down payment is under 20% of the price, the mortgage must be insured. The premium is usually added to the mortgage, so enter the rate your insurer quotes. Minimum down payment rules, maximum amortizations and the stress test change from time to time, so confirm them with your lender or the Government of Canada. Closing costs and land transfer taxes are not included.
Frequently asked questions
Why is my bank's payment slightly different?
Banks may round rates, include insurance differently or use a different payment date. Ask your lender for a payment schedule.
What is amortization versus term?
Amortization is how long it would take to pay off the whole mortgage, often 25 years. The term is how long your current rate and contract last, usually 1 to 5 years.
Last updated