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Mortgage Payment Calculator

This calculator follows the Canadian mortgage convention (semi-annual compounding). Choose your payment frequency and optional prepayments to see how much interest you can save and what balance remains at the end of your term.

Enter your details to see an estimated payment per period.
Uses Canadian semi-annual compounding. Results are estimates only and may differ from your lender.

How this Mortgage Сalculator works

We first calculate the standard monthly payment using Canadian rules (semi-annual compounding). Other frequencies are derived or simulated using the same Canadian interest convention. Accelerated options increase the total amount you pay each year and shorten your amortization. Then we model your scenario with and without prepayments to show principal repaid, interest paid, and potential interest savings.

Mortgage Calculator for Canada

This Mortgage Calculator helps you estimate your mortgage payments and understand the long-term cost of homeownership in Canada. You can also test extra payments to see how quickly you could become mortgage-free.

What Is a Mortgage?

A mortgage is a loan secured by real estate property. In Canada, it is the primary method most people use to purchase a home. The lender finances part of the property's cost, and you repay the loan over time — typically over 25 or 30 years.

Each payment usually includes:

  • Principal - the amount you originally borrowed.
  • Interest - the cost you pay to borrow that money.

Many Canadians choose a fixed-rate “closed” mortgage with a shorter term (for example, 5 years) within a longer amortization period (for example, 25 years). You fully own your home only after the entire mortgage balance is repaid.

Key Components of a Canadian Mortgage

  • Loan Amount - the mortgage amount after subtracting your down payment from the purchase price.
  • Down Payment - typically 5% to 20% of the home's value. Down payments under 20% usually require mortgage default insurance.
  • Amortization Period - the total time to repay the mortgage in full (commonly 25 or 30 years).
  • Interest Rate - fixed or variable; here we model a fixed rate using the Canadian (semi-annual compounding) convention.

Recurring Homeownership Costs

Beyond your mortgage payment, consider the following ongoing expenses:

  • Property Taxes - set by your municipality, usually based on assessed property value.
  • Home Insurance - required by most lenders to protect the property.
  • Mortgage Default Insurance (e.g., CMHC) - typically required when your down payment is less than 20%.
  • Utilities, Repairs & Maintenance - regular upkeep, often estimated at around 1% (or more) of property value per year.
  • Condo or HOA Fees - if you own a condo or a property in a managed community.

One-Time Costs (Not Included in Payments)

  • Closing Costs - legal fees, land transfer tax, title insurance and other fees, often around 1.5-4% of the purchase price.
  • Initial Renovations & Furnishing - upgrades, appliances and furniture.
  • Moving Expenses - movers, trucks, storage and related costs.

Extra Payments & Early Repayment

Many Canadian borrowers use prepayment privileges to reduce interest and pay off their mortgage faster. With this calculator, you can model:

  • One-time lump-sum payments applied directly to principal.
  • Annual extra payments on top of regular installments.
  • Extra amounts added to each payment.

Benefits of early repayment can include:

  • Lower total interest paid over the life of the mortgage.
  • A shorter amortization period.
  • Becoming mortgage-free sooner and improving long-term financial security.

However, always review:

  • Prepayment Penalties - many closed mortgages limit how much extra you can pay each year.
  • Opportunity Cost - extra payments might earn more if invested elsewhere, depending on returns vs. mortgage rate.
  • Liquidity - once paid into your mortgage, funds are less accessible than in cash or liquid investments.
  • Tax Treatment - unlike in some countries, mortgage interest is generally not tax-deductible for your principal residence in Canada.

Mortgage History in Canada

After World War II, the creation of the Canada Mortgage and Housing Corporation (CMHC) helped broaden access to homeownership through insured mortgages and standardized lending. Today, Canadian mortgages are closely regulated and typically structured with conservative lending limits, shorter terms, and stable repayment plans aimed at long-term affordability.

Ready to Plan Your Mortgage?

Use the calculator above to test different rates, terms, payment frequencies and prepayment options. Reviewing these scenarios before you buy or renew can help you choose a mortgage that fits both your monthly budget and your long-term financial goals.

Frequently Asked Questions (FAQs)

What is the difference between amortization and mortgage term?

Amortization period is the total time it takes to pay off your entire mortgage if you make regular payments at the same rate. In Canada, this is typically 25 or 30 years.

Mortgage term is the length of your current mortgage contract with your lender, usually 1 to 5 years. At the end of each term, you renew your mortgage (potentially at a different rate) until the full amortization is complete.


For example, you might have a 25-year amortization with a 5-year term. After 5 years, you'll renew for another term with the remaining balance.

How does Canadian mortgage interest calculation differ from other countries?

Canadian mortgages use semi-annual compounding, meaning interest is calculated and compounded twice per year, not monthly like in the United States.

This is a legal requirement in Canada and results in slightly different payment amounts compared to monthly compounding at the same stated rate. Our calculator follows the Canadian convention to give you accurate payment estimates.

What's the difference between accelerated and regular payment frequencies?

Regular frequencies (weekly, bi-weekly, semi-monthly) divide your annual payment amount evenly across more frequent payments, keeping your total yearly payment roughly the same as 12 monthly payments.

Accelerated frequencies (accelerated weekly or bi-weekly) take your monthly payment, divide it in half (bi-weekly) or by four (weekly), and make payments more frequently. This results in one extra monthly payment per year.


For example, accelerated bi-weekly means you pay (Monthly payment ÷ 2) every two weeks, resulting in 26 payments = 13 monthly payments per year instead of 12. This helps you pay off your mortgage faster and save on interest.

How much can I save with prepayments?

Prepayments go directly toward your principal, reducing the amount on which interest is calculated. This can save you thousands or even tens of thousands of dollars in interest over your mortgage's life.

The savings depend on:

  • The size and frequency of your prepayments
  • Your interest rate (higher rates = more savings from prepayments)
  • How early you make prepayments (earlier = more impact)

Use the prepayment options in the calculator to see potential interest savings for your specific situation.

What prepayment options are typically available on Canadian mortgages?

Most closed mortgages in Canada allow some prepayments without penalty, typically:

  • Lump-sum payments: Usually up to 10-20% of the original mortgage amount per year
  • Increased regular payments: Often up to 10-20% more than your scheduled payment
  • Payment doubling: Some lenders allow you to double a payment occasionally

Prepayment privileges vary by lender and mortgage type. Always check your mortgage agreement for specific limits and conditions before making extra payments.

Do I need mortgage default insurance (CMHC)?

Mortgage default insurance is required by law in Canada when your down payment is less than 20% of the home's purchase price. This insurance protects the lender (not you) if you default on your mortgage.

The three providers in Canada are:

The insurance premium typically ranges from 0.6% to 4.5% of your mortgage amount, depending on your down payment size. This premium is usually added to your mortgage and paid over time with interest.

What's a good mortgage interest rate in Canada?

Mortgage rates in Canada fluctuate based on the Bank of Canada's policy rate, economic conditions, and competition among lenders. As of late 2025 and early 2026, rates typically range from 4% to 7% for fixed-rate mortgages.

What's considered "good" depends on:

  • Current market conditions and Bank of Canada rates
  • Your credit score and financial profile
  • Mortgage type (fixed vs. variable)
  • Term length (shorter terms often have lower rates)
  • Whether it's insured or uninsured

Shop around with multiple lenders and mortgage brokers to find the best rate for your situation.

Should I choose a fixed or variable rate mortgage?

Fixed-rate mortgages lock in your interest rate for the entire term (typically 5 years), providing payment stability and protection against rate increases. They're ideal if you prefer predictable payments or expect rates to rise.

Variable-rate mortgages fluctuate with the lender's prime rate, which follows Bank of Canada policy changes. They often start with lower rates than fixed mortgages but can increase, potentially raising your payments.

Consider:

  • Your risk tolerance and budget flexibility
  • Current rate environment and economic outlook
  • How long you plan to stay in the home
  • Your ability to handle potential payment increases
What happens when my mortgage term ends?

At the end of your term, you have several options:

  • Renew with your current lender: They'll send you a renewal offer, typically 30-120 days before your term ends
  • Negotiate a better rate: Don't accept the first offer—negotiate or shop around
  • Switch lenders: You can transfer to another lender without penalty at term end
  • Pay off the balance: If you have the funds, you can pay the remaining balance without penalty

Most Canadians renew rather than switch, but shopping around can save thousands in interest. Start comparing rates 4-6 months before your term ends.

How much should I budget beyond my mortgage payment?

Your mortgage payment is just one part of homeownership costs. Budget for:

  • Property taxes: Typically 0.5-2.5% of home value annually, depending on municipality
  • Home insurance: $800-$2,000+ per year depending on location and coverage
  • Utilities: Heat, water, electricity ($150-$400+ monthly)
  • Maintenance and repairs: Budget 1-3% of home value annually
  • Condo fees: $200-$800+ monthly if applicable

As a rule of thumb, expect total housing costs to be 30-50% higher than just your mortgage payment. Use the 28/36 rule: housing costs shouldn't exceed 28% of gross income, and total debt payments shouldn't exceed 36%.

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