Canadian Mortgage Calculator
Mortgage payments on a rate compounded half-yearly, as Canadian contracts state it, with accelerated payments and the balance left at renewal.
Result
Payment: $3,199.03
Principal and interest at one rate for the whole amortization. Default insurance, property tax and a different rate at renewal are not included.
- Interest rate each payment period
- 0.4939%
- Effective annual rate
- 6.09%
- Years to pay off at this rate
- 25Estimate
- Total interest at this rate
- $459,711.23Estimate
- Balance owing at the end of the term
- $449,183.74
- Interest paid during the term
- $141,125.54
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Results are arithmetic from the figures you enter, not legal, tax, lending or settlement advice. Fees vary by state, lender and negotiation, and the site quotes none of them. Check your Loan Estimate, Closing Disclosure or settlement statement for the real numbers. Read the full disclaimer
How to use the Canadian Mortgage Calculator
- Enter the mortgage amount, the interest rate and how the mortgage says the rate is compounded.
- Enter the amortization, the years to pay the loan off, and the term, the years this rate is agreed for.
- Choose a payment frequency and read the payment, the balance owing at renewal and the interest paid in the term.
How the rate is converted
A rate quoted as r, compounded m times a year, is converted to the rate for each payment when there are p payments a year:
rate each payment = (1 + r/m)^(m/p) − 1half-yearly, paid monthly: (1 + r/2)^(1/6) − 1The payment then follows the usual level-payment formula over the amortization, rounded to the cent, with each payment’s interest charged to the cent. The effective annual rate is (1 + r/m)^m − 1: 6.09% for 6% compounded half-yearly.
Payment frequencies
Monthly, semi-monthly, biweekly and weekly payments each repay the loan over the full amortization; they differ only in timing. Accelerated biweekly and accelerated weekly payments are the monthly payment divided by two or by four, paid 26 or 52 times a year, which repays the loan sooner. The time to pay off assumes the rate never changes, which a real mortgage renewed every few years will not do.
What is not included
Mortgage default insurance premiums, the qualifying rate used for the stress test, prepayment charges for breaking a term early, land transfer tax and property tax. A variable rate that changes during the term is not modelled.
With your numbers
- Rate each payment = (1 + 6% ÷ 2)^(2 ÷ 12) − 1 = 0.493862%
- Payment = $3,199.03, 12 times a year
- After 60 payments the balance is $449,183.74
Quick reference
Principal and interest at one rate for the whole amortization. Default insurance, property tax and a different rate at renewal are not included.
| Example | Payment |
|---|---|
| 500,000 at 6%, 25 years, monthly | $3,199.03 |
| The same, accelerated biweekly | $1,599.52 |
| The same, biweekly | $1,474.52 |
| The same, compounded monthly | $3,221.51 |
| 400,000 at 4.5%, 30 years, 3-year term | $2,016.86 |
| 650,000 at 5.2%, 25 years, accelerated weekly | €963.70 |
Common questions about the Canadian Mortgage Calculator
- Why is a Canadian mortgage payment different from a US one at the same rate?
- Because the rate is compounded differently. Canada’s Interest Act requires a mortgage to state its rate calculated yearly or half-yearly, not in advance, and fixed rates are commonly compounded half-yearly. A 6% rate compounded half-yearly is 0.4939% a month, not 0.5%, so the payment on 500,000 over 25 years is 3,199.03 rather than 3,221.51.
- What is the difference between the term and the amortization?
- The amortization is how long the whole loan takes to repay, often 25 years. The term is how long the current rate and conditions last, often five years. At the end of the term the balance is renewed, usually at a new rate. The page shows the balance you would still owe at that point.
- How do accelerated payments save interest?
- An accelerated biweekly payment is half the monthly payment, paid every two weeks. There are 26 fortnights in a year, so you pay the equivalent of 13 monthly payments instead of 12. The extra month each year goes straight to principal, which shortens a 25-year amortization by about four years at 6%.
- Does this include mortgage default insurance?
- No. Insurance premiums follow a schedule set by the insurer and change over time, so they are not built in. If a premium is added to your mortgage, add it to the mortgage amount.