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Canada Mortgage Calculator

Estimate monthly payments on a Canadian mortgage in CAD over a 25-year amortization, including how semi-annual compounding and 5-year renewals matter.

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Monthly payment
$1,798.65
Total interest
$347,514.57
Total paid
$647,514.57

How it works

The Canada edition of the mortgage calculator. It gives the monthly principal-and-interest payment over a chosen amortization — 25 years is the common case — from the mortgage amount and the rate. Enter the amount borrowed, meaning purchase price minus down payment. Property taxes, home insurance and condo fees are not included, and neither is mortgage default insurance.

The formula is payment = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), with r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of monthly payments — 300 over a 25-year amortization. One honest caveat: interest on a fixed-rate Canadian mortgage is conventionally compounded semi-annually, while this tool compounds monthly, so it reads a posted rate slightly harder than a Canadian lender would.

Worked example at a hypothetical 5.25%: $520,000 over a 25-year amortization gives $3,116.09 a month here, with $414,826.44 of interest if that rate somehow held for all 25 years. Under the semi-annual convention, 5.25% is equivalent to a nominal monthly rate of about 5.1935%, which would give $3,098.77 — $17.32 a month less and $5,194.33 less interest. So treat our figure as a small over-estimate, not a quote.

The bigger Canadian point is term versus amortization. Mortgages here are usually written as a five-year term inside that 25-year amortization, so the loan is renewed several times before it is repaid. In the example, after 60 payments you would have paid $186,965.40, of which $129,399.79 is interest and only $57,565.61 has come off the principal, leaving $462,434.39 to renew at whatever rate is available then. That is why the lifetime interest figure is a scenario rather than a forecast — and why re-running the calculation two or three points higher is a sensible test of your own resilience.

Two more things the arithmetic cannot show. A federal stress test applies when you qualify, so your approved amount is set by qualifying rules rather than by the payment you think you can manage. And a down payment below 20% means CMHC mortgage insurance, whose premium is commonly added to the mortgage and therefore raises the amount you should enter above. Accelerated or extra payments, which shorten the amortization noticeably, are also not modelled. These are estimates for planning — confirm the numbers with your lender or mortgage broker.

Other regions: United States, United Kingdom, Australia.

Frequently asked questions

Does this use Canadian semi-annual compounding?
No — it compounds monthly, so it is slightly conservative for a Canadian fixed-rate mortgage. On $520,000 over 25 years at a hypothetical 5.25%, monthly compounding gives $3,116.09 while the semi-annual convention works out to about $3,098.77, a difference of $17.32 a month.
What is the difference between term and amortization?
The amortization is how long the mortgage takes to repay in full, commonly 25 years. The term is the length of your current contract and rate, commonly five years. When the term ends you renew the remaining balance at the rates available then, so one mortgage usually spans several terms.
How much of the mortgage is paid off after a five-year term?
Less than most people expect. In the worked example, five years of $3,116.09 payments totals $186,965.40, of which $129,399.79 is interest and $57,565.61 reduces the principal — leaving $462,434.39 owing at renewal.
Do I need CMHC insurance?
Mortgage default insurance applies when your down payment is below 20%. The premium is commonly added to the mortgage balance, so if that applies to you, increase the amount you enter here accordingly — the payment shown does not include it.
Does the calculator account for the mortgage stress test?
No. The stress test is a qualifying rule applied by your lender, not part of the payment maths. It can mean you qualify for less than the payment here suggests you could carry, so treat lender pre-approval as the binding number.
Are property taxes and condo fees included?
No — the result is principal and interest only. Property taxes, home insurance and condo or maintenance fees are real monthly costs of ownership and sit entirely outside this figure.
What about accelerated or extra payments?
They are not modelled here, but they are effective: paying more than required reduces the balance that interest is charged on, which shortens the amortization. Ask your lender about prepayment privileges, since exceeding them can trigger a penalty.

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