Mortgage Payment Calculator

In this mortgage calculator, payment frequency means how often you make mortgage payments. Your payment schedule affects your payment amount and can also impact how quickly you pay down your mortgage and how much interest you pay over time.

Mortgage payment frequency options

Standard payment frequencies:

• Monthly (12 payments per year)
• Semi-monthly (24 payments per year)
• Bi-weekly (26 payments per year)
• Weekly (52 payments per year)

Accelerated payment options:

• Accelerated bi-weekly (26 payments per year, higher payment amount)
• Accelerated weekly (52 payments per year, higher payment amount)

Accelerated payment schedules typically help you pay off your mortgage faster because you pay more each period, which can reduce total interest.

Monthly vs. bi-weekly payments: What's the difference?

• Monthly mortgage payments are made once per month (12 times per year).
• Bi-weekly mortgage payments are made every two weeks (26 times per year).

Since bi-weekly payments happen more often, more of your money goes toward reducing your mortgage balance sooner, which can lower total interest over the long run.

Mortgage Payment Frequency and Payments Per Year

Your payment frequency is how often you make mortgage payments. Choosing monthly, semi-monthly, bi-weekly, weekly, or an accelerated schedule changes how your payments are split throughout the year and can affect how quickly you pay down your mortgage.

Are semi-monthly mortgage payments the same as bi-weekly mortgage payments?

No. Semi-monthly and bi-weekly payment frequencies are different.

Semi-monthly mortgage payments

Semi-monthly means you pay twice per month, usually on two set days (for example, the 1st and 15th). That equals 24 payments per year (2 × 12 months). Semi-monthly payments are often calculated as half of the monthly payment.

Bi-weekly mortgage payments

Bi-weekly means you pay every two weeks, which equals 26 payments per year. Bi-weekly payments are not tied to calendar months, so some months will have two payments and a couple of months will have three.

Why this matters in a mortgage calculator:

• Semi-monthly = 24 payments per year
• Bi-weekly = 26 payments per year

Standard bi-weekly payments are usually set so the total you pay over the year is similar to monthly payments (spread over 26 payments instead of 12). Accelerated bi-weekly payments are higher, and that's what can add up to about one extra monthly payment per year.

Accelerated Mortgage Payments

In our mortgage calculator, accelerated payment options (accelerated bi-weekly and accelerated weekly) can help you pay off your mortgage faster and reduce total interest. They work differently from standard (non-accelerated) bi-weekly or weekly payments because the payment amount is not reduced.

Standard vs. accelerated mortgage payments

Non-accelerated bi-weekly and weekly payments

Non-accelerated bi-weekly and weekly payments are based on your equivalent monthly mortgage payment. You pay the same total amount per year as you would with monthly payments, just split into more frequent (and smaller) payments.

Non-accelerated bi-weekly payment

Non-accelerated weekly payment

Because payments happen more often, you may pay down your balance slightly sooner throughout the year, which can reduce interest a bit. The difference is usually modest compared to accelerated payments.

How accelerated mortgage payments work

Accelerated payments keep the payment amount higher. Instead of spreading 12 months of payments across 26 (or 52) smaller payments, accelerated options start with your monthly payment and divide it into more frequent payments:

Since there are 26 bi-weekly payments and 52 weekly payments in a year, this typically adds up to roughly one extra monthly mortgage payment per year. Over time, that extra amount goes directly toward paying down your principal faster, which can shorten your amortization and reduce total interest.

Which payment schedule is right for me?

In general:

• Choose a payment frequency that matches your pay schedule (monthly or bi-weekly) to make budgeting easier.
• Accelerated bi-weekly or accelerated weekly payments can help you pay off your mortgage faster and reduce total interest.

Mortgage Payment Frequency Example

With standard (non-accelerated) payment frequencies, you typically pay the same total amount per year as monthly payments. The only difference is that you're just making smaller payments more often. With accelerated payments, you pay more over the year, which can help you pay off your mortgage faster and reduce total interest.

Let's compare mortgage payment frequencies using a simple example. Assume your mortgage calculator shows a monthly mortgage payment of $2,000. Below is how that same payment is split across different payment schedules.

Comparing a $2,000 Monthly Payment Frequency

Monthly, semi-monthly, bi-weekly, and weekly payments all add up to $24,000 per year in this example (12 x $2,000). Accelerated payments add up to $26,000 per year, which is roughly the equivalent of one extra monthly payment each year. That extra amount goes toward your mortgage principal sooner, which can shorten your amortization and lower your total interest costs.

Your chosen payment frequency will also update the amortization schedule in the mortgage payment calculator above, so you can compare how different payment schedules affect your mortgage over time.

Your down payment is the upfront amount you pay toward the purchase price of a home. In this mortgage calculator, your down payment reduces the amount you need to borrow, which usually lowers your mortgage payment and your total interest cost over time.

If your down payment is less than 20%, you'll typically need mortgage default insurance (often called CMHC insurance, but your lender may use CMHC, Sagen, or Canada Guaranty). In that case, the insurance premium is commonly added to your mortgage balance, so you pay interest on it too.

What's my minimum down payment in Canada?

Your minimum down payment depends on the home's purchase price:

• $500,000 or less: 5% of the purchase price
• $500,000 to $1.5 million: 5% of the first $500,000 plus 10% of the amount over $500,000
• $1.5 million or more: 20% of the purchase price

Some lenders may require a larger down payment depending on factors like your credit profile, income type, or the property.

Are there additional costs or restrictions with a small down payment?

Yes. If your down payment is below 20%, you'll need mortgage default insurance. There are also limits on your amortization:

• Maximum 30 years if you're a first-time buyer and/or buying a new build
• Maximum 25 years in other cases

Your mortgage amortization is the total length of time it will take to fully pay off your mortgage (for example, 25 or 30 years). In this mortgage calculator, your amortization period is used to calculate your mortgage payment and generate your amortization schedule.

A longer amortization usually means a smaller mortgage payment, but you'll typically pay more total interest over the life of the mortgage. A shorter amortization means a larger mortgage payment, but you'll generally pay less total interest and pay off your mortgage faster.

In Canada, the maximum amortization you can qualify for depends on your down payment and whether your mortgage is insured. If your down payment is less than 20% (an insured mortgage), the maximum amortization is:

• 30 years if you're a first-time homebuyer or buying a new build
• 25 years in other cases

If your down payment is 20% or more (an uninsured mortgage), your mortgage lender sets your maximum amortization. For example, there are even 35-year mortgages and 40-year mortgages in Canada.

What amortization period should I choose?

Here are some general guidelines for choosing an amortization period:

• 25 years is a common amortization in Canada, and it's often a good balance between payment size and total interest.
• If you can afford a higher payment, choosing a shorter amortization can reduce your total interest cost and help you become mortgage-free sooner.
• If you need a lower payment to qualify or manage cash flow, a longer amortization can reduce your mortgage payment, but it usually increases the total interest you'll pay over time.
• If your down payment is below 20%, your maximum amortization may be limited to 25 or 30 years

Your mortgage term is the length of time your mortgage contract stays in effect before you have to renew. It includes the interest rate and other key conditions. In Canada, mortgage terms are typically 1 to 5 years, while your amortization is the total time it takes to fully pay off your mortgage (often 25 or 30 years).

In this mortgage calculator, your payment is still calculated based on your amortization. For those renewing or refinancing, entering your term length into the calculator lets you know how much interest you will pay over that specific term. This calculator includes common mortgage terms in Canada, such as 1-year, 2-year, 3-year, 4-year, 5-year, and 10-year terms.

What mortgage term should I choose?

The most common mortgage term in Canada is 3 to 5 years, but the right term depends on your goals. A shorter term (like 1-3 years) means you have to renew sooner, and your payment could change earlier. A longer term (like 5 years) can provide more predictable payments for longer, but you're also locked in for longer.

It's also important to consider mortgage prepayment penalties: if you break your mortgage before the end of the term (for example, because you sell your home without porting, or you refinance), your lender may charge a penalty. Comparing a few term lengths in a mortgage calculator can help you see how changes in interest rate might affect your payment and total interest cost.

What happens at the end of a mortgage term?

At the end of your term, you generally have three options:

• Renew your mortgage
  You sign a new term with the same lender at a new interest rate. Your mortgage payment may change depending on the new renewal rate and remaining amortization.
• Refinance or switch your mortgage
  You replace your mortgage with a new one, either with your current lender or a different lender. Mortgage refinancing can let you change your term, switch lenders, access equity, or adjust your mortgage features, but it may involve re-qualification and fees.
• Pay off the mortgage
  If you have the funds available, you can pay the remaining balance in full.

Your mortgage interest rate is the annual rate you pay to borrow money, and it directly affects your mortgage payment and total interest cost. In this mortgage calculator, changing the interest rate will update your payment amount and your amortization schedule.

You can compare fixed vs. variable mortgage rates to see how different rates may impact your budget and the overall cost of your mortgage in Canada.

How does the interest rate affect the cost of my mortgage?

Each mortgage payment includes:

• Interest (the cost of borrowing)
• Principal (the amount that pays down your mortgage balance)

A higher interest rate usually means a higher payment and more total interest over time. A lower interest rate reduces your borrowing costs, which can save you money, especially on larger mortgages or longer amortizations.

What's the difference between a fixed and variable mortgage rate?

• Fixed-rate mortgage: Your interest rate is set for the length of your mortgage term, so your payment is generally predictable during the term.
• Variable-rate mortgage: Your interest rate can change during the term. In Canada, variable mortgage rates are tied to your lender's prime rate, so your rate can move up or down when prime changes.
  Some variable mortgages have adjustable payments (your payment changes when rates change, called an adjustable-rate mortgage), while others have fixed payments (your payment stays the same, but the interest/principal split changes, and your payment may need to adjust if rates rise enough).

What controls a variable mortgage rate?

Most variable mortgage rates in Canada are priced relative to your lender's prime rate (for example, "prime minus a discount" or "prime plus a premium"). Lenders set their own prime rate, and prime often moves in response to changes in the Bank of Canada policy interest rate.

Should I choose a fixed or variable rate?

Choose fixed if you want payment stability and prefer knowing your rate won't change during the term.

Choose variable if you can handle rate fluctuations and want the potential benefit of lower rates.

Also consider penalties if you break your mortgage early (for example, if you sell without porting, or if you refinance before the term ends). Fixed-rate mortgages often have higher break penalties than variable-rate mortgages.

Some lenders offer a mortgage payment holiday (also called skip-a-payment, payment pause, or mortgage payment deferral). This feature may let you temporarily stop or reduce payments, but it depends on your lender, mortgage type, and whether your mortgage is in good standing.

In most cases, you can't "skip for free." A skipped payment is usually allowed only if you've already built up an equivalent amount through prepayments (or you qualify under a specific lender program).

When you can usually skip a mortgage payment

Eligibility varies, but many lenders require that:

• your mortgage is up to date (not in arrears)
• you've made payments on time for a minimum period
• your mortgage balance is not higher than it was at the start of the term (or you've built a prepayment buffer)
• you haven't exceeded the lender's allowed number of skipped payments

What happens if you skip a mortgage payment?

Skipping a payment usually means you're paying it later. Depending on the lender and program, a skipped payment may:

• be added to your mortgage balance, or
• be moved to the end of your amortization (extending your payoff timeline)

Interest typically continues to accrue during the skipped period, which can increase your total borrowing cost over time.

How often can you skip mortgage payments?

This depends on your lender and your mortgage terms. Common structures include:

• skipping one month's worth of payments per year, or
• skipping multiple months only if you've prepaid an equivalent amount first

Because lender policies change, it's best to confirm the exact rules directly with your lender or mortgage agreement.

Many Canadian lenders let you increase your regular mortgage payment (often called a double-up payment or payment increase option). This can help you pay down your mortgage principal faster and reduce the total interest you pay over time.

How it works:

• You increase your scheduled payment amount (for example, by 10%, 15%, or up to 100% depending on the lender and mortgage product).
• The extra amount typically goes directly toward your principal, which can shorten your amortization.

A mortgage prepayment is any extra payment you make in addition to your regular mortgage payments to reduce your principal balance faster. Prepayments can lower your total interest cost and help you become mortgage-free sooner.

Most closed mortgages allow prepayments up to a certain annual limit (often shown as a percentage of the original mortgage amount). If you go over the allowed limit, you may be charged a prepayment penalty.

With an open mortgage, prepayments are usually more flexible, but interest rates are higher.

How accurate is a mortgage calculator?

A mortgage calculator gives a close estimate of your mortgage payment based on the inputs you enter (home price, down payment, interest rate, amortization, and payment frequency). Your actual payment may differ depending on your lender, mortgage features, and any amounts added to your payment (like property taxes or mortgage default insurance).

Does this mortgage calculator include CMHC insurance?

If your down payment is under 20%, mortgages require mortgage default insurance. This mortgage calculator shows payments with and without the insurance premium, so you can compare how it affects your mortgage amount and payment.

What's the difference between a mortgage term and amortization?

Your mortgage term is how long your interest rate and mortgage agreement are set before renewal (often 1-5 years). Your amortization is the total time it takes to pay off the mortgage in full (often 25 or 30 years). A mortgage calculator uses amortization to calculate your mortgage payment amount.

What's a good amortization period in Canada?

A 25-year amortization is common in Canada. A shorter amortization usually increases your payment but reduces total interest. A longer amortization can lower your regular payment, but typically increases total interest over time.

How do accelerated bi-weekly payments work?

Accelerated bi-weekly payments are usually calculated as half of your monthly payment, paid every two weeks (26 times per year). Because you're paying more over the year than standard monthly payments, accelerated bi-weekly payments can reduce interest and help you pay off your mortgage faster.

Are bi-weekly payments the same as semi-monthly?

No. Semi-monthly means twice per month (24 payments per year). Bi-weekly means every two weeks (26 payments per year). That difference matters when comparing payment schedules in a mortgage calculator.

What interest rate should I use in a mortgage calculator?

Use the interest rate you expect to qualify for from your lender (or a current rate quote). Even a small rate change can meaningfully impact your payment and total interest, so it's helpful to run a few scenarios (for example, your rate, plus 0.5%, and minus 0.5%).

Fixed vs variable: which does a mortgage calculator assume?

A mortgage calculator typically assumes your interest rate stays constant for the scenario you enter. If you choose a variable rate in real life, your rate may change during the term, which can change either your payment amount or how much goes toward principal and interest.

How much does a larger down payment reduce my mortgage payment?

A larger down payment reduces the amount you borrow, which usually lowers your mortgage payment. If increasing your down payment gets you to 20% or more, you may also avoid mortgage default insurance, which can further reduce your mortgage amount and payment.

Can I pay off my mortgage faster with prepayments?

Often, yes. Many mortgages allow extra payments (prepayments) up to a yearly limit without penalty. Prepayments reduce your principal faster, which can lower total interest and shorten your amortization. Limits and rules vary by lender and mortgage product.

What happens at renewal?

At the end of your mortgage term, you usually renew with a new rate and term, refinance into a new mortgage, or pay off the balance. Your mortgage payment can change at renewal if your interest rate changes or if you adjust your amortization.

Does a mortgage payment include property tax in Canada?

Sometimes. In Canada, some lenders collect property taxes as part of your mortgage payment and then pay the municipality on your behalf. Other lenders let you pay property taxes directly to your city or town, so they're not included in your mortgage payment.

If your lender collects taxes, they'll estimate your annual tax bill and add a monthly amount to your payment. If the estimate is too low or your tax bill increases, you may need to pay the difference or have your payments adjusted.

What happens if I miss or have a late mortgage payment?

A mortgage payment is late if it isn't paid on the due date. If you miss a payment, your lender will typically contact you and may charge fees (for example, a late fee or NSF fee) depending on your mortgage agreement.

In most cases, you'll need to bring the account back to date as soon as possible. This might mean making the missed payment, making an extra payment, or adjusting your next payment (the exact process depends on the lender). If missed payments continue, it can be reported to credit bureaus and may negatively affect your credit history.

Note: "Skip-a-payment" or payment-deferral options usually need to be arranged in advance and may not be available if your mortgage is in arrears.

What are mortgage statements?

A mortgage statement is a summary of your mortgage activity and current terms. It typically shows key details like your current interest rate, remaining balance, payment amount, and amortization information. Many lenders send statements annually, and you may be able to access them online or request one on demand.

Mortgage statements often include:

• Current interest rate
• Mortgage balance (principal)
• Regular payment amount and frequency
• Total payments made during the period
• Remaining amortization
• Any amounts collected for property taxes (if applicable)
• Optional insurance premiums (if included in your payment)

Whether you’re a Canadian snowbird looking to purchase a second home in Florida or you’re planning on moving to the United States, there are differences between Canadian and U.S. mortgages.

Mortgage Terms

The biggest difference that Canadian borrowers will notice is the difference in mortgage terms. In the U.S., mortgage terms are usually for the entire life of the mortgage. Since U.S. mortgage terms are the same as the mortgage's amortization period, the interest rate will be set for the entire life of the mortgage and will not need to be renegotiated.

Mortgage terms in the U.S. are commonly 30 years, while Canadian amortization periods are usually 25 years. There are adjustable rate mortgages in the U.S. which act as a fixed rate for a certain number of years, and then become a variable rate for the remainder.

Mortgage Application Process

Cross-border U.S. mortgage applications take a much longer time to process compared to Canadian mortgages. That's because American mortgages require more documentation and verification.

For Canadians looking to get an American mortgage, you'll need to provide documents such as your Canadian tax returns, proof of Canadian citizenship or U.S. visa, Social Insurance Number or U.S. Social Security Number, proof of assets, and insurance documents.

You can use your Canadian assets and equity in your Canadian home, but they'll be converted to U.S. Dollars when being considered in your application.

U.S. mortgage applications take around 45 to 60 days, while Canadian mortgages take around 5 to 10 days to process. Although Canadian mortgages are simpler, make sure to have the proper documentation when applying for a mortgage.

Tax Deductible Mortgage Interest

Mortgage interest can be tax deductible in the U.S. but that's not the case in Canada. Canadian homeowners can still use a tax strategy to make their mortgage interest tax deductible in Canada by using the Smith Maneuver.

Mortgage Payment Frequency

Monthly mortgage payments are the most popular option in the U.S., and many lenders do not allow other mortgage payment frequencies. For example, Citibank, US Bank, and TD Bank do not allow bi-weekly mortgage payments. Some lenders that allow biweekly payment plans may charge an additional fee.

Mortgage Prepayments

Many U.S. mortgage lenders allow you to make additional monthly mortgage payments, but if you’re looking to fully pay off your mortgage, then early mortgage payoffs for U.S. mortgages may come with a mortgage prepayment penalty. However, prepayment penalties are illegal for FHA loans, VA loans, and USDA loans. For lenders that do charge a prepayment penalty, it’s usually only charged if you fully pay off the mortgage within a few years of signing the mortgage loan.

In the United States, mortgage prepayment penalties are only allowed for the first three years of a mortgage loan. The penalty also can't be more than 2% of the mortgage loan balance for the first two years, and the penalty can't be more than 1% in the third year.

There are six states that ban prepayment penalties for all mortgage loans:

• Alabama
• Alaska
• Iowa
• Maryland
• New Mexico
• Vermont

Other states that ban prepayment penalties on certain mortgage loan types, such as those with a high interest rate, subprime, or have a certain balance, include:

• New Jersey
• New York
• Connecticut
• Minnesota
• North Carolina
• South Carolina
• Pennsylvania
• Ohio
• Maine
• Indiana
• Massachusetts

Differences in Mortgage Defaults

If a borrower is delinquent on their mortgage loan, an U.S. mortgage lender can choose to file a notice of default, which starts the foreclosure process. This notice of default is sent after there are 90 days of missed payments, with foreclosure starting after 180 days.

Foreclosures and power of sales in the United States work similarly to those in Canada. Some states, such as California and Texas, use non-judicial power of sale, while other states, such as New York and Florida, use judicial foreclosures.

Looking at Canada, power of sale is commonly used in Ontario, while foreclosures are more common in British Columbia, Quebec, and Alberta.

U.S. law requires a mortgage loan to be 120 days past due before foreclosure can begin. In Canada, there is no such law that prevents a lender from starting the foreclosure process before a certain number of missed payments. For example, in Alberta, a foreclosure can start as soon as one missed mortgage payment. In Manitoba, foreclosure can start after one month of missed mortgage payments. Canadian foreclosures usually have a set number of months that the borrower can fully repay the due amount in order to prevent the forced sale of their home. This redemption period is usually six months.

Power of sale can start earlier than foreclosures in the United States. In California, power of sale can start as soon as after 4 months of missed mortgage payments.

Numeric Example: How much is the monthly mortgage on a $500,000 house?