Canadian Mortgage Payment Calculator

This calculator estimates your potential monthly mortgage payment based on the Mortgage Amount, Interest Rate, and Amortization period you select using the sliders.

It also shows the estimated total interest savings you could achieve over the loan's amortization period if you made accelerated bi-weekly payments instead of monthly payments. Additionally, a chart visualizes the estimated annual breakdown between principal and interest paid under a monthly schedule.

The estimated monthly payment is calculated using a standard formula based on the inputs you provide:

• Mortgage Amount: The principal loan balance.
• Interest Rate: The annual rate entered. For this estimation, the calculator uses a simplified monthly rate (Annual Rate / 12).
• Amortization Period: The total length of the loan repayment in years, converted to months.

This gives an estimated fixed payment covering both principal and interest over the amortization.

Accelerated bi-weekly payments involve taking your calculated monthly payment, dividing it by two, and paying that amount every two weeks. Since there are 26 two-week periods in a year, you end up making 26 of these half-payments.

This effectively results in making one extra *full* monthly payment each year (26 half-payments = 13 full monthly payments). This extra amount goes directly towards your principal loan balance, reducing it faster.

By lowering the principal faster, less interest accumulates over the remaining loan term. The "savings" shown represent the estimated total interest you avoid paying over the entire amortization period compared to making standard monthly payments.

The chart provides a visual estimate of how your mortgage payments (assuming a standard monthly schedule) are allocated between principal and interest each year over the amortization period.

• Interest Paid (Annual): This line typically starts high and decreases over time. In the early years of a Canadian mortgage, a larger portion of your payment goes towards interest.
• Principal Paid (Annual): This line typically starts low and increases over time. As the interest portion decreases, more of your payment goes towards paying down the actual loan amount (principal).

This helps visualize how equity in your home builds faster in the later years of the mortgage.

By law in Canada, fixed-rate mortgages have interest calculated semi-annually, not compounded monthly or annually. Variable rates often compound monthly.

This calculator, for simplicity and estimation purposes, uses a basic monthly interest rate (Annual Rate / 12) to calculate the payment shown. A lender's calculation based on semi-annual compounding will result in a slightly different, often slightly lower, payment for the same advertised annual rate.

Therefore, use this calculator as a good guide, but expect the final payment figure from a lender to be slightly different due to the required compounding method.

No. This is an estimation tool only. The results are based on the simplified formulas used and the information you input.

It does not constitute a mortgage pre-approval, quote, or guarantee of financing or specific terms. Factors like your credit history, income verification, the property itself, and the lender's specific policies (including the precise implementation of semi-annual compounding) will determine your actual mortgage payment and qualification.

For accurate figures and personalized advice regarding your mortgage options in Canada, please use the "Apply Here" button or contact a licensed mortgage professional.