Smart Mortgage Planning Calculator

Your mortgage payment consists of two main components: principal and interest. The calculation uses an amortization formula that ensures equal payments over your mortgage term while gradually shifting from mostly interest to mostly principal. Our calculator automatically determines your payment schedule based on your loan amount, interest rate, and amortization period, taking into account whether you choose monthly, bi-weekly, or accelerated bi-weekly payments.

A fixed-rate mortgage keeps your interest rate steady for the entire term, offering predictable payments and protection against rate increases. Variable rates fluctuate with the Bank of Canada's prime rate, potentially saving you money when rates decrease but requiring financial flexibility if they increase. Our calculator lets you compare both scenarios to find the best fit for your situation.

Canadian down payment requirements vary by purchase price: 5% minimum for homes under $500,000, 5% on the first $500,000 plus 10% on the remainder for homes between $500,000 and $999,999, and 20% for homes $1 million or more. Our calculator helps you understand how different down payment amounts affect your mortgage insurance requirements and monthly payments.

CMHC insurance is mandatory for mortgages with less than 20% down payment. This insurance protects lenders and enables them to offer competitive rates to borrowers with smaller down payments. The premium is typically added to your mortgage amount, and our calculator shows you exactly how this affects your payments and total costs.