Mortgage payment calculator

Fixed-rate mortgages in Canada compound semi-annually by law, not monthly, so the payment is calculated from an effective rate per payment period. For example, a $600,000 mortgage at 4.5% over 25 years works out to about $3,320.84 a month.

You pay half your monthly payment every two weeks. Because there are 26 bi-weekly periods in a year, that adds up to the equivalent of one extra monthly payment each year, which pays the mortgage off years sooner. In the example above, it shortens a 25-year amortization to under 22 years.

5% of the first $500,000 of the purchase price and 10% of the portion above that, up to $1.5 million. Homes priced at $1.5 million or more need at least 20% down.

With less than 20% down, your mortgage must be insured against default. The premium is a percentage of the loan that rises as your down payment shrinks, and it’s usually added to the mortgage rather than paid upfront.

The amortization is the total time to pay off the mortgage, often 25 years. The term is how long your current rate and conditions last, often 5 years, after which you renew. The calculator shows what you’ll still owe at renewal.

Often, yes. Insured mortgages can generally have a 30-year amortization for first-time buyers or newly built homes, and many lenders offer 30 years on uninsured mortgages with 20% or more down. A longer amortization lowers the payment but adds interest.

Lenders look at your income, debts and the stress test rate, not just the payment. Our home affordability study estimates the income needed to buy in each Canadian market and lets you test any price.