Canada mortgage calculator
In Canada, a fixed mortgage rate is quoted compounded semi-annually (twice a year). This applies that rule and compares payment frequencies.
Result
1,454.01Payment
- Number of payments
- 559
- Paid off in 21 years and 6 months
- Interest cost
- 311,971.62
- Total paid
- 811,971.62
- Effective yearly rate
- 5.0625%
Inputs
- Mortgage amount
- 500000
- Posted rate per year
- 5
- Amortization
- 25
- Payment frequency
- Accelerated bi-weekly
How it is calculated
Rate per period = (1 + rate ÷ 2)^(2 ÷ k) − 1, with k payments a year (Canadian semi-annual compounding rule).
Result
Payment
- Number of payments
- 559
- Interest cost
- 311,971.62
- Total paid
- 811,971.62
How it is calculated
- Rate per period = (1 + rate ÷ 2)^(2 ÷ k) − 1, with k payments a year (Canadian semi-annual compounding rule).
- Payment = amount × i ÷ (1 − (1 + i)^−n).
- Accelerated: monthly payment ÷ 2, paid 26 times a year; the mortgage ends sooner.
- Effective yearly rate = (1 + rate ÷ 2)² − 1.
Example
$500,000 at 5% over 25 years: 2,908.02 a month, or 1,454.01 accelerated bi-weekly, which clears the mortgage in 21 years and 6 months with 311,971.62 of interest (vs 372,407.48 monthly).
Good to know
- Fixed rate over the whole amortization; in practice the term is often 5 years, then the rate is renewed.
- Mortgage default insurance (CMHC) and property taxes not included.
Frequently asked questions
What is this tool used for?
In Canada, a fixed mortgage rate is quoted compounded semi-annually (twice a year). This applies that rule and compares payment frequencies.
How is the result calculated?
Rate per period = (1 + rate ÷ 2)^(2 ÷ k) − 1, with k payments a year (Canadian semi-annual compounding rule).
What should I check before using the result?
Fixed rate over the whole amortization; in practice the term is often 5 years, then the rate is renewed.