When it comes to purchasing a house in Canada, there is normally one factor that is considered, how much will the mortgage payment be and can I reasonably afford it over the long term? The Canadian Mortgage Calculator makes that question easy and fast to respond to by estimating the payment, providing a complete amortization schedule and allowing you to test various down payments, payment frequencies, interest rates and prepayments.

Our in-built calculator can be used to estimate:

• Your normal mortgage payment (weekly, bi-weekly, semi-monthly or monthly)
• How much goes to principal vs interest
• Your payoff date and total interest over time
• How extra payments (prepayments) can reduce interest and shorten amortization

Canadian mortgages have a few important differences compared with other countries most notably, interest is commonly compounded semi-annually and payment frequency options like accelerated bi-weekly are extremely popular. 

How to use a Canadian mortgage calculator

To get an accurate estimate, you’ll want to enter realistic numbers for these key inputs:

1) Home price and down payment

Your down payment changes the loan size and may affect whether you need mortgage default insurance.

In Canada, minimum down payment rules typically work like this:

• $500,000 or less: minimum 5%
• $500,000 to under $1.5M: 5% on the first $500k + 10% on the remainder
• $1.5M or more: 20% minimum (and mortgage loan insurance generally isn’t available) (cmhc-schl.gc.ca)

2) Mortgage amount (loan amount)

Some tools use “Mortgage Amount” directly (the amount you borrow). Others start with purchase price and down payment, then calculate the loan.

3) Interest rate

Enter the annual rate you expect to negotiate. Even small rate changes can significantly affect total interest over a long amortization.

4) Amortization period (and why it’s not the same as “term”)

This is one of the most misunderstood parts of Canadian mortgages:

• Amortization period = the total time it would take to pay the mortgage off (commonly 25 years)
• Term = how long your current mortgage agreement lasts before renewal (often 1–10 years)

Canada’s official tools explicitly call out this difference so borrowers don’t confuse the two.

Important rule update: As of December 15, 2024, if your down payment is less than 20%, the maximum amortization may be limited (for example, 30 years only in certain cases like first-time buyers or new builds; otherwise 25 years). (itools-ioutils.fcac-acfc.gc.ca)

Payment frequency options in Canada (monthly vs bi-weekly vs accelerated)

A good Canadian mortgage calculator should let you compare payment schedules like:

• Monthly (12 payments/year)
• Semi-monthly (24 payments/year)
• Bi-weekly (every 2 weeks, 26 payments/year)
• Weekly (52 payments/year)
• Accelerated bi-weekly / accelerated weekly

Why do Canadians love accelerated options? Since faster schedules normally equate to an additional payment of one month annually, this will assist you in saving on interest and reducing your time of amortization.

What the results mean (so you can make better decisions)

When you calculate, focus on these outputs:

Mortgage payment breakdown

Many calculators show:

• Principal + interest payment
• Optional estimates for property taxes, home insurance, condo fees, and other costs

This is helpful because your true monthly “housing cost” is often more than principal and interest.

Amortization schedule

An amortization schedule shows, payment by payment:

• How much of each payment goes to interest
• How much goes to principal
• Your remaining balance over time
• Your estimated mortgage payoff date

In the early years, a larger share of your payment typically goes toward interest. As the balance drops, more of the payment shifts to principal.

Total interest paid

A big reason to use a calculator is to understand the “true cost” of borrowing. Tools often display total interest over the amortization, which is crucial when comparing:

• 25 vs 30-year amortization
• Fixed vs variable rates
• Monthly vs accelerated payment plans

Prepayment: the fastest way to reduce interest

Many Canadian mortgage calculators let you model prepayments, like:

• One-time lump-sum payment
• Annual extra payment
• Extra payment matching your regular payment frequency 

Prepayments generally apply directly to the principal balance, which can:

• Reduce total interest
• Shorten the amortization period
• Bring your payoff date closer

Ask your mortgage agreement regarding prepayment options and potential penalties (especially on closed mortgages).

Mortgage loan insurance and affordability checks

Mortgage default insurance (also CMHC-insured mortgages) is usually required when you have less than 20 as a down payment. It may help to cost more to borrow, but also allows smaller down payments.

Stress test (qualifying rate)

When qualifying for a mortgage in Canada, lenders typically apply a “stress test.” The qualifying rate is commonly the greater of:

• Contract rate + 2%, or
• 5.25% (OSFI)

This would not make you pay the higher rate but is used to make you sure that you will be able to make payments had there been an increase in the rate as well.

Tips to get more accurate results from any mortgage calculator

1. Make real taxes and insurance estimates (Unless they are included in your calculator).
2. Two or three payments monthly are compared with accelerated bi-weekly payments and this is often a good surprise to people.
3. Run scenarios at +0.50% and +1.00% interest rate to stress-test your budget.
4. If you’re renewing soon, use the calculator to check how a new rate affects your payment and amortization.
5. Add a “what if” prepayment, small extra amounts can have a big impact over time. 

FAQ

Does a Canadian mortgage calculator include semi-annual compounding?

Many Canada-specific calculators note that Canadian mortgage interest is commonly compounded semi-annually, which can make results differ from calculators designed for other countries.

Is accelerated bi-weekly really worth it?

It often can be—accelerated payments may effectively add an extra monthly payment each year, which can reduce interest and shorten amortization. 

Why does my lender’s payment differ from the calculator?

Calculators are excellent estimates, but lenders may calculate slightly differently and may include/structure items like insurance premiums, compounding conventions, or payment rounding in their own way.