About the Canadian Mortgage Calculator
Mortgages in Canada work a little differently from those in the United States. Fixed-rate mortgages are compounded twice a year, not monthly, and the loan is split into a term, often five years, during which the rate is fixed, and an amortization, the longer period of up to 25 or 30 years over which you pay it off. This Canadian mortgage calculator allows for semi-annual compounding and lets you choose monthly, semi-monthly, bi-weekly, weekly or accelerated payments. It shows your payment, the interest you pay during the term, the balance you will still owe when it is time to renew, and how soon accelerated payments pay the mortgage off.
Updated October 2026
How to use the Canadian Mortgage Calculator
- 1Enter the home price and your down payment.
- 2Enter the interest rate quoted by your lender.
- 3Enter the amortization in years and the term in years.
- 4Choose how often you will make payments.
- 5Read the payment, the interest in the term, the balance at the end of the term and the payoff time.
A worked example
On a 400,000 mortgage at 5 percent with a 25-year amortization and monthly payments, the payment is about 2,326. In the first five years you pay about 93,600 of interest and bring the balance down to about 354,000. Switching to accelerated bi-weekly payments of about 1,163 costs about the same each month overall but pays the mortgage off in around 21.5 years instead of 25, which saves roughly 48,000 in interest.
Ways to lower the interest cost
- Choose accelerated payments if your budget allows
- Make lump-sum prepayments up to the limit your lender allows
- Shorten the amortization, for example from 30 to 25 years
- Shop around at renewal for a better rate
- Make a larger down payment
Related tools
The Mortgage Calculator covers the US style, the Amortization Calculator shows a schedule, the House Affordability Calculator finds a price range, the Refinance Calculator compares a new loan and the Down Payment Calculator plans your savings. Check all figures with your lender, as costs such as insurance premiums and fees are not included here.
Features
- Semi-annual compounding as used in Canada
- Term and amortization shown separately
- Monthly, semi-monthly, bi-weekly and weekly payments
- Accelerated bi-weekly and weekly options
- Balance at the end of the term
- Total interest over the whole loan
- Runs in your browser
Frequently asked questions
What is the difference between term and amortization?
The amortization is the total time it would take to pay off the mortgage, such as 25 years. The term is the shorter period, commonly 1 to 5 years, for which your interest rate and lender agreement last. At the end of the term you renew at a new rate or switch lender, and the balance carries forward.
Why is the compounding different in Canada?
Under Canadian law fixed-rate mortgages must state the rate compounded no more often than semi-annually. A 5 percent rate compounded twice a year is a slightly lower real monthly cost than 5 percent compounded monthly. The calculator converts the rate into an equal rate per payment period.
What are accelerated payments?
An accelerated bi-weekly payment is the monthly payment divided by two, paid every two weeks. That makes 26 half-payments a year, which equals 13 monthly payments instead of 12. The extra payment goes to principal, so you pay off the mortgage sooner and save interest.
Is bi-weekly the same as accelerated bi-weekly?
No. A regular bi-weekly payment is calculated so that the mortgage is still paid off in the same amortization, so it is a little less than half the monthly payment. The accelerated version is exactly half the monthly payment, which pays the loan off faster.
How much down payment do I need in Canada?
Under the usual rule, 5 percent of the first 500,000 of the price and 10 percent of the part up to 1.5 million, with 20 percent for homes over that. Rules change and lenders may ask for more, so check current rules. A down payment under 20 percent usually needs mortgage default insurance, which this calculator does not include.
What happens at renewal?
The calculator shows the balance at the end of your term. You then negotiate a new rate and term on that balance. If rates are higher, your payment may rise. Try the calculator with a higher rate to see how much your payment might change.