Mortgage Payment · Canada

Mortgage Payment Calculator

Canadian semi-annual compounding. Every payment frequency. Full amortization schedule + prepayment scenarios.

These numbers are a good estimate. A licensed IndiBrick advisor will tune them against your actual file and current lender rates.

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Nitish Gupta

Personally reviewed by

Nitish Gupta

Co-Founder · Mortgage Agent Level 1

FSRA #128306+ yrsEnglish · Hindi · Punjabi

I personally review every purchase + renewal files, business development and respond within 2 business hours.

Questions you probably have

Why do Canadian mortgages use semi-annual compounding?+

The Interest Act (Canada) requires regulated A-lenders to compound residential mortgage interest semi-annually — twice per year, not monthly (which is the US standard). Using the US monthly formula overstates your payment by roughly $20–$40/mo on a typical file. Every calculation on this page uses the correct Canadian formula.

What is the difference between bi-weekly and accelerated bi-weekly?+

Regular bi-weekly pays every 2 weeks (26 payments/year), spreading your monthly payment across those 26 dates. Accelerated bi-weekly takes your monthly payment and pays HALF every 2 weeks — 26 halves = 13 full monthly payments/year (one extra). That extra payment typically reduces amortization by 3–4 years on a 25-year mortgage.

Do prepayments really save that much interest?+

Yes — every extra dollar goes straight to principal, reducing the balance that compounds forward. An extra $200/month on a $500,000 mortgage at 4.29% saves roughly $75,000 in interest and 5 years of payments. Check your mortgage contract for the annual prepayment limit (typically 15–20% of original principal per year).

Does this include CMHC insurance?+

Yes — if your down payment is under 20%, CMHC (or Sagen / Canada Guaranty) mortgage default insurance is required. The premium is calculated automatically and added to your mortgage balance. Standard tiers: 15–19.99% down = 2.8%, 10–14.99% = 3.1%, 5–9.99% = 4.0%.

Why does the property tax appear in the payment breakdown?+

Your monthly mortgage payment to the lender is principal + interest, but your true monthly housing cost also includes property tax + heating + condo fees. Ontario average property tax is 0.5–1.0% of home value annually; we default to 0.75% for the illustration. Your file-specific rate will differ.

Real numbers, real broker.

The math above is a good estimate — a licensed IndiBrick advisor will tune it against your file and current lender rates.

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