Mortgage Payment

The mortgage payment is the number that decides your life, not the purchase price. Two buyers can pay the same price and have payments $500 apart because of rate, amortization, and payment frequency. This calculator turns those three levers into a dollar figure per payment period, so you can see exactly what each choice costs you.

What it answers, and what it doesn't

It answers: the monthly payment on a given mortgage amount at a given rate and amortization. Change one lever and watch the payment move.

It does not answer: whether you qualify for that mortgage (that is the stress test's job), what your total housing cost is (property tax, heat, and condo fees are not in this number), or how much interest you will pay over the life of the loan unless the calculator shows an amortization schedule. It also does not know about the 0.20% insurance premium surcharge on 30-year insured amortizations — that raises your rate, not your payment directly, but it feeds into the amount you borrow.

Every input, explained

Mortgage amount. Enter the loan, not the price: price minus down payment, plus the insurance premium if your down payment is under 20%. The classic error is typing the purchase price and wondering why the payment looks terrifying. A $620,000 price with 20% down is a $496,000 mortgage — those are very different payments.

Interest rate. Enter your contract rate as an annual figure. Canadian mortgages compound semi-annually, not monthly, which makes the true monthly rate slightly lower than rate ÷ 12. A calculator that divides by 12 overstates your payment a touch. The common error is comparing a Canadian bank's posted rate directly against a US-style monthly-compounded figure.

Amortization. The number of years the payment schedule is spread over. Insured mortgages max out at 25 years, except first-time buyers and buyers of newly built homes, who have been able to take 30-year insured amortizations since 15 December 2024. Uninsured mortgages are the lender's discretion and commonly go to 30. Longer amortization means a smaller payment and much more total interest — both true at once.

This calculator shows the standard monthly payment. If you want to see what biweekly or accelerated-biweekly payments would do to your interest cost, see the FAQ below for how those schedules work — a lender's illustration or amortization tool will give you the exact biweekly figure.

How the math works

Each payment covers that period's interest first; whatever is left reduces the principal. The calculator solves for the fixed payment that brings the balance to exactly zero after the full amortization. Because Canadian rates compound semi-annually, the monthly rate is derived from (1 + rate/2)^(2/12) − 1, not rate ÷ 12. Everything else is arithmetic: earlier payments are mostly interest, later payments mostly principal.

Worked example: $620,000 mortgage at 5% (illustrative rate), 25 vs 30 years

Take a $620,000 mortgage at a 5% contract rate, compounded semi-annually as Canadian mortgages are. The monthly rate is (1.025)^(1/6) − 1 = 0.004124, or 0.4124%.

25-year amortization (300 payments):

Growth factor: (1.004124)^300 = 3.4366
Payment = $620,000 × 0.004124 × 3.4366 ÷ 2.4366 = $3,606 per month

30-year amortization (360 payments):

Growth factor: (1.004124)^360 = 4.3987
Payment = $620,000 × 0.004124 × 4.3987 ÷ 3.3987 = $3,309 per month

Stretching to 30 years cuts the payment by $297 a month — about 8%, squarely in line with the roughly 9% reduction the longer amortization delivers. The trade: five extra years of payments, most of them interest-heavy in the early years. On an insured mortgage, the 30-year option also adds a 0.20% surcharge to the insurance premium, so the true cost comparison includes a slightly larger premium folded into the loan.

Provincial quirks and edge cases

The 30-year insured option has a velvet rope. Since December 2024 it is open to first-time buyers and to any buyer of a newly built home — not to repeat buyers of resale homes on insured mortgages. If you are selling your current home and buying another resale with less than 20% down, 25 years is your ceiling.

Quebec's rate display rules. Federally regulated lenders quote the semi-annual rate; always confirm whether a broker's quote is the contract rate or an "effective" monthly-compounded equivalent before entering it.

Payment shock at renewal. This calculator shows the payment at today's rate. If your term is five years and rates rise, the payment recomputes on the remaining balance at renewal. Stress-testing your own budget at contract rate plus two points is a habit worth building, not just a lender requirement.

Prepayment privileges change the math. Most mortgages allow annual lump sums and payment increases. A calculator without prepayment inputs understates how fast a disciplined borrower can kill the loan — and how much interest they can dodge.

Questions to ask your mortgage broker or lender

Is this quote's rate compounded semi-annually, and what is the exact monthly payment to the dollar?
Am I eligible for a 30-year amortization on this file, and how does the 0.20% insurance premium surcharge change my borrowed amount?
What are my prepayment privileges — annual lump sum percentage, and can I increase the regular payment?
If I choose accelerated biweekly, is it truly half the monthly payment every two weeks, and what is the equivalent annual extra payment?

Frequently asked questions

Why is my payment higher than rate ÷ 12 × balance suggests?

Because amortization math is not simple interest. Early payments are interest-heavy, and the fixed payment is sized so the loan dies exactly on schedule. The first payment on the example above includes about $2,557 in interest and only about $1,049 in principal.

Does a lower rate or a longer amortization save more?

It depends on the numbers, but rate cuts usually win: they reduce every payment and the total interest. Longer amortization reduces the payment while increasing total interest. Run both scenarios rather than guessing.

Should I pick 30 years if I qualify?

The smaller payment lowers your required qualifying income, which can be the difference between approval and rejection. If you qualify comfortably at 25 years, the shorter schedule saves a large amount of interest. Many borrowers take 30 for approval, then use prepayments to behave like a 25.

What is the difference between biweekly and accelerated biweekly?

Regular biweekly divides the annual cost into 26 equal pieces. Accelerated biweekly takes half the monthly payment 26 times a year — which equals 13 monthly payments instead of 12. That one extra monthly payment per year comes straight off principal.

Rules and rates as of September 2026. This is general information for Canadian home buyers and sellers, not financial, legal, or tax advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.