Mortgage Payment Calculator

Calculate your mortgage payments in Canada with our easy-to-use Mortgage Payment Calculator.

How to use our Mortgage Payment Calculator

  1. Purchase Price – Start here by entering the amount you are willing to pay to purchase a property.
  2. Down payment – Enter the cash amount you are ready to pay upfront for the property.
  3. Amortization – This is the total time required to pay off your full mortgage amount. It ranges from 25-30 years.
  4. Mortgage rate – It is the interest rate at which a lender will offer you the mortgage against your new home.
  5. Payment frequency – How often will you pay the installments – monthly, biweekly, quarterly, or annually? Enter your payment frequency here.
  6. Total Monthly Mortgage Payment – This result will indicate the amount you will pay at every installment based on your financial needs.

Complete selections for
each scenario

Purchase price
Down payment
Scenario 1
Scenario 2
Mortgage rate
Payment frequency
Total Monthly
Mortgage Payment:
Scenario 1 - Amortization 25 Years Mortgage rate - Payment frequency Monthly
Scenario 2 - Amortization 25 Years Mortgage rate - Payment frequency Monthly
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Written By Shivani Kaul

Content Manager


What is a mortgage payment calculator?

A mortgage payment calculator is an online tool that helps borrowers estimate their monthly mortgage payment based on certain inputs, such as the purchase price, interest rate, amortization period, and payment frequency. A mortgage payment in Canada refers to the regular payments made by a borrower to their lender to repay a loan used to purchase a property. This payment typically includes both principal and interest, as well as any applicable taxes, insurance, and other fees. The amount of the mortgage payment is determined by factors such as the size of the mortgage, the interest rate, the amortization period, and the type of mortgage product chosen. The principal payment goes towards paying down the amount borrowed, while the interest payment goes towards the lender. The mortgage payment may also include additional costs such as property taxes and insurance premiums. The payment amount is determined by factors such as the size of the loan, the interest rate, and the length of the mortgage term.

By entering these details into the calculator, the tool will calculate an estimate of the monthly mortgage payment, which includes both principal and interest.

Different types of mortgage payments

There are several types of mortgage payments that borrowers can choose from in Canada, including:

  1. Fixed-rate mortgage payments – With a fixed-rate mortgage, the interest rate and monthly mortgage payments remain the same throughout the term of the mortgage. Borrowers have a predictable payment schedule and can budget their financial spendings accordingly.
  2. Adjustable-rate mortgage payments – With an adjustable-rate mortgage, the interest rate and monthly payments can fluctuate based on changes in the market or Bank of Canada’s overnight rates. This type of mortgage can be riskier for borrowers as they may be exposed to higher payments if interest rates rise.
  3. Variable-rate mortgage payments – Similar to adjustable-rate mortgages, variable-rate mortgages have an interest rate that can change over time. However, the mortgage payments remain the same, and any changes in the interest rate affect the amount of principal that is repaid each month.
  4. Interest-only mortgage payments – With an interest-only mortgage, borrowers only pay the interest on the loan for a specified time, typically up to 10 years. This type of mortgage can be useful for those who need lower initial payments, but it can be riskier in the long term as it does not reduce the principal balance of the loan.
  5. Bi-weekly or accelerated mortgage payments – These types of payments involve making payments more frequently than the standard monthly payments. Bi-weekly payments split the monthly payment into two smaller payments made every two weeks, while accelerated payments involve making larger payments than required to pay off the mortgage sooner and save on interest costs.

Understanding your payment calculator result

Are you eager to know how much mortgage payment you would be shelling out from your pocket each pay cycle? Understanding your payment calculator result is an important step in your financial planning. Here are the factors required to calculate your mortgage payment:

  1. Purchase price is the price at which the seller has agreed to sell the property to you. It is based on the market rate prevalent in the area and the amount that you and the seller have come to a consensus on for the property.
  2. Down payment is the cash amount you as a buyer is willing to pay the seller upfront. It is the amount which you have promised to pay before drawing in a loan from a financial lender. It could be gift money or part of your savings that you would put aside for payment towards the property.
  3. Mortgage amount is the total loan amount you would be seeking from a financial lender towards the property. It is purchase price minus the down payment, that you would be seeking as loan from your financial lender.
  4. Interest rate is the rate at which the lender will offer you a loan against the property. The lower the interest rate, the lower will be your monthly mortgage payment.
  5. Amortization is the gradual repayment of a loan or debt. In the mortgage language, the borrower repays the loan to the lender in regular installments that include both principal and interest, with the goal of paying off the loan over a set period of time. This is the most common mortgage amortization period if 25 to 30 years.

How can the mortgage Payment Calculator help you?

  • Accurate budgeting: A mortgage payment calculator can help you determine the estimated monthly payment amount for a particular mortgage, including principal, interest, property taxes, and insurance. By using a calculator, you can get clarity on how much money you'll need to set aside for your mortgage payment each cycle, which can help you budget accurately.
  • Comparison of mortgage options: A mortgage payment calculator can also help you compare different mortgage options. By entering different interest rates, you can see how the monthly payment amount varies depending on factors such as the down payment amount. This can help you select the most affordable option that meets your needs.
  • Planning for extra payments: If you're planning to make extra payments on your mortgage, a mortgage payment calculator can help you determine how much you can save in interest and how much faster you can pay off your loan. By entering the additional payment amount and frequency, the calculator can show you the impact of these extra payments on your mortgage term and interest paid. This information can help you plan your finances and make informed decisions about your mortgage payments.

Frequently asked questions about our mortgage payment calculator

Here are some of the most-asked mortgage payment questions:

How do lump-sum payments affect my mortgage?

Lump sum payments should generally have a positive impact on your mortgage. When you make a lump sum payment, you are paying down a portion of the principal balance of your mortgage. This reduces the amount of interest you will owe on the mortgage, which in turn can lower your monthly payments. It also means that you will be paying off your mortgage faster because the amount of interest that you will pay over the life of the loan will be reduced. However, some mortgages may have prepayment penalties or restrictions on lump sum payments, so it's a good idea to check with your lender before making any large payments.

What is the average mortgage monthly payment in Canada?

The average monthly mortgage payment in Canada depends on several factors like type of home, mortgage type, interest rate, down payment, etc. However, according to the Canadian Real Estate Association, the average home price in Canada in February 2023 was approximately $746,000. Assuming a 20% down payment of $149,200, a 30-year fixed-rate mortgage with a 3.5% interest rate, and no additional fees or charges, the average monthly mortgage payment would be around $2,648.

Does your calculator include default-insurance fees?

No. If you’re getting an insured mortgage, you’ll need to manually add insurance premiums to the loan amount yourself. Then calculator will then return the correct payment.

How do I pay less interest than principal?

On a standard 25-year amortization, if your interest rate is less than 2.80% you’ll pay more principal than interest on every payment.

If you pay more than the minimum required payment each month, you'll reduce the principal balance of your mortgage more quickly, which in turn will reduce the amount of interest that accrues. Refinancing your mortgage at a lower rate reduces the amount of interest you pay over the amortization period.

By taking up a shorter loan term will result in higher monthly payments, but it will also reduce the total amount of interest you pay over the life of the mortgage.

If you come into extra money, such as a bonus at work or a tax refund, consider putting it towards your loan. This will reduce the principal balance of the loan, which will reduce the amount of interest that accrues.

When are mortgage payments due?

For monthly payments, the most common date is the first of each month. But confirm your case directly from your lender.

Does this calculator take fluctuations in prime rate into account for variable-rate mortgages?

No. It assumes your interest rate will remain the same for the entire term.

Can I pay less often than monthly?

No, not with a mainstream lender like a bank.

Can I go back to monthly payments once I increase my payment frequency?

Increasing your ongoing payment frequency is supposed to be a permanent move. But most lenders allow you to revert to monthly payments if you need to.

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