Planning tool
What will the payment actually be?
Enter a price, a down payment and a rate to see the payment on any frequency a Canadian lender offers, along with total interest, the year-by-year amortization and what an extra amount each payment would do. Calculated with semi-annual compounding, the way Canadian mortgages actually work.
Your numbers
Change anything and the payment, total interest and amortization update immediately.
The federal minimum at this price is $50,000.
Accelerated options take the monthly payment and split it, which works out to roughly one extra monthly payment a year.
Optional. Most lenders allow a prepayment privilege — the exact limit is in your mortgage commitment.
Monthly payment
$3,418.25
On a mortgage of $600,000 at 4.79% over 25 years.
Mortgage amount
$600,000
No default insurance premium at this down payment
Total interest over the term
$425,475
Across 300 payments
Total of all payments
$1,025,475
Principal plus interest, excluding property tax and insurance
Payment at the qualifying rate
$4,125/mo
Lenders test you at 6.79%, not your contract rate
What this calculation assumes
- · Canadian mortgages compound semi-annually rather than monthly, and the payments here use that convention.
- · Accelerated bi-weekly and accelerated weekly payments are the monthly payment divided by two or four, which results in the equivalent of thirteen monthly payments a year.
- · Default mortgage insurance is required below 20% down and is unavailable at a purchase price of $1.5 million or more. The premium is added to the loan; the Ontario sales tax on the premium is paid in cash at closing.
- · Amortization beyond 25 years on an insured mortgage carries a premium surcharge and is limited to first-time buyers and buyers of newly built homes.
- · The payment shown is principal and interest only. Property tax, heat, condo fees and home insurance are additional.
- · Prepayment privileges vary by lender and product. Confirm your limits before committing to extra payments.
Other calculators
Want to know which rate you would actually be offered?
The rate you plug into a calculator is a guess. A review looks at your income documentation, credit profile and property type, then matches the lenders whose pricing fits your file. Subject to lender underwriting.
Understanding the numbers
Payment questions, answered
Why does an accelerated bi-weekly payment pay the mortgage off faster?
An accelerated bi-weekly payment is simply your monthly payment cut in half and paid every two weeks. Because there are twenty-six two-week periods in a year rather than twenty-four, you make the equivalent of thirteen monthly payments instead of twelve. That extra payment goes almost entirely to principal, which is why it can take several years off the amortization. A plain bi-weekly payment is calculated to fit the original amortization and does not have the same effect.
Why is my payment different from a calculator that compounds monthly?
Canadian mortgages are compounded semi-annually, not in advance, under the federal Interest Act. American calculators typically compound monthly, which produces a slightly higher payment on the same rate. This calculator uses the Canadian convention, so the figures line up with what a Canadian lender would quote.
Does the payment include property tax and insurance?
No. The payment shown is principal and interest only. Property tax, heating, home insurance and condominium fees are additional, and lenders include them in the debt-service calculation when they assess you. Some lenders also collect property tax with your mortgage payment, which raises the amount withdrawn from your account without changing the principal and interest figure.
How much can I prepay without a penalty?
Most lenders allow an annual lump-sum prepayment and an increase to the regular payment, commonly in the range of ten to twenty per cent, but the exact privileges vary by lender and by product. Some of the lowest advertised rates carry restricted prepayment terms. Your mortgage commitment sets out your limits, and it is worth reading before you commit to a prepayment plan.
Is the default insurance premium added to my payment?
When your down payment is below twenty per cent, the premium is normally added to the mortgage and amortized along with it, which is reflected here. In Ontario the provincial sales tax on that premium cannot be financed and must be paid in cash at closing, so it belongs in your closing cost budget rather than your payment.
Should I choose a longer amortization to lower the payment?
A longer amortization lowers the payment and can help you qualify, at the cost of more total interest over the life of the mortgage. On an insured mortgage, amortizations beyond twenty-five years are limited to first-time buyers and buyers of newly built homes and carry a premium surcharge. Whether it is the right trade-off depends on your cash flow and how long you expect to hold the property, which is a conversation worth having before you commit.
Reading the result
The payment is not the whole cost of the mortgage.
Two mortgages with the same payment can cost very different amounts. The frequency you choose, the prepayment privileges attached to the product, the penalty formula if you break early and whether the charge is registered as a collateral charge all have a dollar value that never appears in a payment calculator.
That is worth knowing before you chase the lowest advertised number. The cheapest rate on a restricted product can be the most expensive mortgage you have ever had if your circumstances change in year three.
Ways to pay less interest
Switch to accelerated bi-weekly
The single easiest change. It costs you the equivalent of one extra monthly payment a year and typically removes several years from the amortization without any refinancing.
Round the payment up
Increasing the payment by even a modest amount goes entirely to principal. Most lenders allow a payment increase once per year within the privileges in your commitment.
Apply lump sums when they arrive
A tax refund or bonus applied against principal early in the amortization saves far more interest than the same amount applied in year twenty.
Shorten the amortization at renewal
If your income has grown, renewing into a shorter amortization locks in the faster payoff rather than relying on discipline.
Match the product to your plans
If there is a real chance you will sell or refinance mid-term, the penalty formula and portability terms matter more than a few basis points on the rate.
Next step
Find out which rate and product your file supports.
A qualification review looks at your documentation and matches the lenders whose pricing and terms fit your scenario. Subject to lender underwriting.
A real person reviews your scenario. This platform does not issue automated approvals, and no financing outcome is guaranteed.