Mortgage Payment Calculator Canada 2026

Calculate your monthly mortgage payments, amortization schedule, and total interest costs. Compare fixed and variable rates for Canadian mortgages.

FAQ

What is the difference between a mortgage term and the amortization period?

The amortization period is the total time to pay off the mortgage in full — typically 25 years. The term is the length of your current rate agreement with the lender, usually 5 years. At the end of each term, you renew your mortgage at a new rate (or switch lenders) for another term, until the full amortization is complete. A 25-year mortgage might involve five separate 5-year terms.

Why does Canada use semi-annual compounding?

The Interest Act of Canada requires that fixed-rate mortgage interest be calculated semi-annually, not in advance. This means your quoted annual rate is compounded twice per year rather than monthly, so the effective monthly rate is slightly lower than simple division by 12 would suggest. For example, a 5% quoted rate compounded semi-annually results in a lower effective cost than 5% compounded monthly. Variable-rate mortgages, by contrast, are typically compounded monthly.

Should I choose a fixed or variable rate mortgage?

This depends on your risk tolerance and interest rate outlook. Fixed rates give you payment certainty for the entire term, which is valuable in rising-rate environments. Variable rates are typically lower initially and may save you money if rates remain stable or fall, but your costs increase if rates rise. Historically, variable rates have saved borrowers money more often than not over the long run, though past results don't guarantee future outcomes.

How do accelerated bi-weekly payments save money?

With regular bi-weekly payments, your monthly payment is divided by 2 and paid every two weeks (26 payments per year, equaling 12 months of payments). With accelerated bi-weekly, your monthly payment is divided by 2 but paid 26 times — which is equivalent to making 13 monthly payments per year instead of 12. That extra month's payment goes entirely to principal, which shortens your amortization and significantly reduces total interest paid. On a 25-year amortization, this can pay off your mortgage approximately 2-3 years early.

What happens at mortgage renewal?

At the end of your term, you can renew with your current lender at a new rate, switch to a different lender, or pay off the remaining balance. If switching lenders, you'll need to re-qualify (including the stress test) and may incur legal and appraisal fees. Your lender will typically send a renewal offer 30 days before your term expires, but you're not obligated to accept it. Always compare rates from multiple lenders before renewing.

How does this calculator work?

Enter your mortgage amount, interest rate, amortization period, and payment frequency. The calculator converts the quoted annual rate to an effective rate using semi-annual compounding — the standard in Canada for fixed-rate mortgages — then generates a complete amortization schedule showing each payment's principal and interest components, the remaining balance, and cumulative interest paid. You can compare scenarios by adjusting the rate, amortization, or payment frequency. It also shows how accelerated payment options can shave years off your mortgage and save thousands in interest.