Mortgage Repayment Calculator & Comparison Tool
Compare two mortgage scenarios side by side. See how your rate, amortization, payment frequency, and prepayments change your payment, total interest, and payoff date, using Canadian compounding rules.
Home and down payment
Scenario A Your mortgage
Scenario B Compare with
Side-by-side comparison
How this mortgage calculator works
- Canadian compounding: by law, fixed-rate mortgages in Canada compound interest semi-annually, not monthly. Many variable-rate mortgages compound monthly. Choose the rate type for each scenario to match.
- Accelerated payments: accelerated bi-weekly payments are half your monthly payment, made every two weeks. That works out to 26 half-payments, or one extra monthly payment a year, which goes straight to principal.
- Mortgage default insurance (CMHC): with less than 20% down, the premium (2.80% to 4.00% of the loan) is added to your mortgage. Insured mortgages over 25 years add 0.20% and are generally limited to first-time buyers and new builds. Some provinces charge sales tax on the premium, paid at closing.
- Prepayments: most lenders let you prepay 10% to 20% of the original balance each year without penalty. Check your mortgage's prepayment privileges.
Mortgage questions
How is mortgage interest calculated in Canada?
Under the Interest Act, fixed-rate mortgages in Canada are compounded semi-annually, not in advance. That makes the effective rate slightly lower than the same rate compounded monthly. Many variable-rate mortgages compound monthly, so check your mortgage documents.
Does an accelerated bi-weekly payment really save money?
Yes. An accelerated bi-weekly payment is half of your monthly payment made every two weeks, which adds up to one extra monthly payment each year. On a typical 25-year mortgage, that can shorten the amortization by roughly three years and save thousands of dollars in interest.
What is the difference between amortization and term?
The amortization is the total time it would take to pay off the mortgage, often 25 or 30 years. The term is the length of your current contract and interest rate, often 5 years. When the term ends, you renew with the remaining balance at a new rate.
How much is CMHC mortgage insurance?
Mortgage default insurance is required when your down payment is less than 20%. The premium is 4.00% of the loan with 5% to 9.99% down, 3.10% with 10% to 14.99% down, and 2.80% with 15% to 19.99% down. It is usually added to your mortgage balance.
What is the minimum down payment in Canada?
The minimum down payment is 5% of the first $500,000 of the purchase price and 10% of the portion between $500,000 and $1.5 million. Homes priced at $1.5 million or more require at least 20% down and cannot be insured.
This calculator is an estimate for educational purposes only. It assumes the interest rate stays the same for the full amortization, payments are made on time, and prepayments are applied once a year. Actual payments, insurance premiums, and prepayment rules vary by lender and province. It is not a mortgage offer or financial advice.