Financial Tools
Mortgage Payment Calculator (Canada)
This calculator estimates Canadian mortgage payments using real-world assumptions — including semi-annual compounding, payment frequency choices, and optional ownership costs.
1. Home & Mortgage Details
Uses standard Canadian mortgage conventions, including semi-annual compounding. Estimates are for educational purposes only — lender terms and insurance premiums vary.
2. Monthly Payment Snapshot
A calm snapshot of what this home could cost month to month.
Your Payment
What you’ll pay over time
True Monthly Housing Cost
Built for Canadian families. No bank affiliations.
How mortgage payments work in Canada
A mortgage payment is determined by four main factors: the price of the home, your down payment, the interest rate, and the length of your amortization. Together, these decide both your monthly payment and the total cost of borrowing.
This calculator is designed to help Canadian families understand those trade-offs clearly — before committing to a purchase or lender.
Principal vs interest: where your money actually goes
Every mortgage payment is split between principal (the amount you owe) and interest (the cost of borrowing).
Early in a mortgage, a larger portion of each payment goes toward interest. Over time, more of your payment goes toward reducing the balance. This is why total interest paid can be surprisingly high over long amortizations.
How amortization affects monthly payments
Amortization is the total length of time you plan to take to repay the mortgage, often 20 to 30 years in Canada.
- Longer amortization: lower monthly payments, higher total interest
- Shorter amortization: higher payments, less interest over time
This calculator shows both your monthly payment and the long-term cost, helping you decide what feels sustainable — not just affordable today.
The role of your down payment
A larger down payment reduces the mortgage amount you need to borrow, which lowers both monthly payments and total interest.
In Canada, smaller down payments may also require mortgage default insurance, which increases the true cost of ownership even if monthly payments look manageable.
Why interest rates matter so much
Even small changes in interest rates can have a meaningful impact on monthly payments and total interest paid.
This is why many families test different rates here — to understand how rate changes affect affordability before choosing a term or lender.
What this calculator does — and doesn’t — include
This tool focuses on the core mortgage mechanics only. It does not include property taxes, insurance, utilities, maintenance, or lender-specific rules.
To see the full picture, you may want to explore:
Reminder: This calculator provides general estimates for education only. Actual mortgage terms, insurance premiums, and lender policies vary. Consider professional advice for purchase decisions.