Mortgage calculator: your payment and your interest
On a $400,000 fixed-rate mortgage at 5%, amortized over 25 years, the monthly payment is about $2,326. Over a 5-year term, about $93,600 of those payments goes to interest. Enter your numbers to see yours.
Frequently asked questions
Why is the interest compounded twice a year?
In Canada, fixed-rate mortgages are generally calculated with interest compounded twice a year, not monthly. On $400,000 at 5%, amortized over 25 years, that's about $2,326 a month, rather than $2,338 with monthly compounding.
What's the difference between the term and the amortization?
The amortization is how long it would take to repay the whole mortgage, often 25 years. The term is the length of your current contract, often 5 years. At the end of the term, you renew the balance that's left, at a new rate.
What's the minimum down payment?
5% of the price up to $500,000, then 10% of the part between $500,000 and $1.5 million. At $1.5 million or more, you need 20% of the price. Under 20%, you typically need to buy mortgage loan insurance.
Does paying more often reduce the interest?
Very little, if the total paid in the year stays the same. Over 5 years, in our $400,000 example, going from monthly to weekly saves about $220 of interest. Accelerated payments, which raise the year's total, do more.
Self-employed or a business owner?
A lender may want to see your business income. With our bookkeeping plan, from $49.99 a month, plus taxes, your financial reports are in your portal, including your income statement.
This calculator gives an estimate. It's general information, not financial advice. Your lender will confirm your rate, your payment and your fees.