How to use the Mortgage Calculator
- 1 Enter the home price and your down payment.
- 2 Enter the interest rate from your lender and the amortization, usually 25 years.
- 3 Choose monthly, biweekly or accelerated biweekly payments.
- 4 Read the payment, the amount borrowed and the total interest. With accelerated biweekly, see how many years sooner you are mortgage-free.
Worked example
$600,000 home, $120,000 down, 4.5% over 25 years. The amount borrowed is $480,000. With semi-annual compounding the monthly payment is about $2,656.67, and total interest over 25 years is about $317,001. Paying $1,328.34 accelerated biweekly instead clears the mortgage in about 21.7 years and saves roughly $48,000 in interest.
Features
Semi-annual compounding
Uses the Canadian method required for fixed-rate mortgages under the Interest Act, so payments match lender quotes closely.
Accelerated biweekly
Half the monthly payment every two weeks adds up to one extra monthly payment a year and cuts years off the loan.
Total cost
See the total interest over the full amortization, not just the payment.
When to use it
House hunting
Try different prices to find a payment that fits your budget before you make an offer.
Choosing a payment schedule
Compare monthly and accelerated biweekly to see how much interest the faster schedule saves.
Renewal
Enter your remaining balance as the price, no down payment, and the new rate to estimate your payment at renewal.
Rate changes
See how a quarter-point change in rate moves your payment before you lock in.
Frequently asked questions
Why is a Canadian mortgage calculated differently?
The Interest Act requires the rate on a blended-payment mortgage to be stated as compounded yearly or half-yearly, and lenders use semi-annual compounding for fixed rates. That makes the effective monthly rate slightly lower than the quoted rate divided by 12.
What is accelerated biweekly?
You pay half your monthly payment every two weeks. With 26 payments a year, that equals 13 monthly payments instead of 12, so the mortgage is paid off years sooner.
Does this include CMHC insurance?
No. If your down payment is under 20%, mortgage default insurance is required and its premium is usually added to the loan. Ask your lender for the premium and add it to the price.
What is the minimum down payment?
For homes up to $500,000 it is 5%. Higher prices need more, and homes of $1.5 million or more need at least 20%. Check current federal rules before you buy.
Are variable-rate mortgages calculated the same way?
Many variable-rate mortgages compound monthly. Use this as an estimate and confirm the compounding with your lender.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated