Mortgage payment calculator
Compute your regular mortgage payment from amount, rate, term, and payment frequency. Canadian semi-annual compounding. Results update live as you type.
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Estimate only. Final payment depends on your full mortgage approval.
How a Canadian mortgage payment is calculated
The formula uses the standard amortizing-loan equation with rates compounded semi-annually, not in advance — the Canadian Bank Act convention. The equivalent per-period rate is derived so the math is consistent whether you choose monthly, semi-monthly, bi-weekly, or weekly payments. This semi-annual compounding produces slightly lower payments than the US convention (which compounds monthly), so American mortgage calculators give the wrong answer for a Canadian mortgage.
Payment frequencies — what actually changes
- Monthly: 12 payments/year, simplest, lender default
- Semi-monthly (twice a month): 24 payments at half the monthly amount; same annual outflow, slightly less interest
- Bi-weekly (every 2 weeks): 26 payments at half the monthly; same annual outflow
- Accelerated bi-weekly: 26 payments at half the monthly = 13 monthly equivalents per year (one extra payment); pays off ~3 years sooner
- Weekly: 52 payments at quarter of monthly; same annual outflow
- Accelerated weekly: 52 payments at quarter of monthly = 13 monthly equivalents per year; same effect as accelerated bi-weekly
The wealth-building options are the accelerated versions — both pay the equivalent of one extra monthly payment per year, going entirely to principal and compounding over the remaining amortization. See the bi-weekly vs monthly calc for the savings math.
What drives your payment most
Three numbers — and one matters more than people think:
- Mortgage amount: linear effect. Each $100k of mortgage adds ~$570/month at 4.84% / 25 years.
- Interest rate: the largest swing factor. Same $720k mortgage at 25-year amort: 3.99% = $3,781/mo; 4.84% = $4,118/mo; 5.99% = $4,602/mo. A 1% rate change moves your payment about 9%.
- Amortization: longer = lower payment but more total interest. Same $720k at 4.84%: 25 years = $4,118/mo, $515k total interest; 30 years = $3,768/mo, $635k total interest. The extra 5 years saves $350/mo but costs $120k extra interest.
Fixed vs variable rate — which to plug in
Use your contracted rate. For a 5-year fixed mortgage, plug in the 5-year fixed rate; for a variable, the current variable rate. The payment shown is what you pay during the current term — at renewal (typically 5 years later) you'll re-amortize at whatever rates are then available. See the fixed vs variable calc for a deeper comparison.
Insured vs uninsured — does it change the math?
If your down payment is under 20%, your mortgage is insured (CMHC, Sagen, or Canada Guaranty). The insurance premium is added to your mortgage balance and financed over the amortization — increasing both your monthly payment and total interest. See the default insurance calc for current premium tiers and the down payment + CMHC calc for the stack-up.
What this calculator does not include
- Property tax — pull your city's rate via the property tax calc
- Heating + condo fees — relevant for affordability ratios, not the mortgage payment itself
- HELOCs — separate product with its own rate and minimum payment structure
- Provincial land transfer tax — one-time closing cost, see the LTT calc
- CMHC premium when insured — added to the mortgage balance via the default insurance calc
Worked example — typical Canadian first-time buyer
$720,000 home, $80,000 down (11.1% down → insured), 4.84% 5-year fixed, 25-year amortization, monthly payments:
- Mortgage before insurance: $640,000
- CMHC premium (~3.10% at 88.9% LTV): $19,840 — added to balance
- Total mortgage financed: $659,840
- Monthly payment: ~$3,775
- Total interest over 25 years: ~$472,000
- Total paid over 25 years: ~$1,132,000
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Questions about this calculator
- How is a Canadian mortgage payment calculated?
- From four inputs: the principal, the interest rate, the amortization period and the payment frequency. Canadian fixed-rate mortgages compound semi-annually rather than monthly, which is why a Canadian payment on the same nominal rate is slightly lower than the US equivalent.
- What is the difference between the term and the amortization?
- The amortization is how long the mortgage takes to pay off in full — commonly 25 or 30 years. The term is how long your current contract and rate last, usually one to five years. At the end of the term you renew the remaining balance, typically several more times before the amortization ends.
- Does this include property tax and insurance?
- No. This calculates principal and interest only. Property tax, heating and condo fees affect what you can qualify for rather than the payment itself — use the affordability calculator for that, since lenders include them in the debt-service ratios.
- Why does accelerated bi-weekly pay the mortgage off faster?
- An accelerated bi-weekly payment is half the monthly payment taken 26 times a year, which is the equivalent of thirteen monthly payments instead of twelve. That extra payment goes entirely against principal, typically removing three to four years from a 25-year amortization.