Term vs. amortization
The amortization is the full repayment period. The term is the shorter period covered by one mortgage agreement before renewal.
Mortgage & home buying
What will this mortgage cost each month?
Estimate your payment, borrowing cost and cash needed upfront. Adjust any input and the result updates instantly.
✓ 2026 rules · Last verified August 2026 · Based on official Canadian sourcesEstimated monthly payment
$2,962 / month
Planning estimate — not financial advice.
Estimated housing cost: $3,432 / month
Mortgage amount$520,000
Mortgage insuranceNot required
Interest over 5-year term$116,455
$
Minimum cash to plan for$139,750Down payment + 1.5% closing-cost planning allowance
Compare two changes
Rate 0.50% lower$2,818 / month↓ $145 / month
Down payment +$25,000$2,820 / month↓ $142 / month
Principal, interest and equity
Year-by-year amortization schedule
See how each year’s payments are divided between principal and interest, and how the remaining mortgage balance declines. The equity column assumes the home value stays unchanged.
| Year | Principal paid | Interest paid | Balance remaining | Estimated equity |
|---|---|---|---|---|
| 1 | $11,127 | $24,423 | $508,873 | $141,127 |
| 2 | $11,666 | $23,884 | $497,207 | $152,793 |
| 3 | $12,231 | $23,318 | $484,976 | $165,024 |
| 4 | $12,824 | $22,725 | $472,152 | $177,848 |
| 5 | $13,446 | $22,104 | $458,706 | $191,294 |
Understand the result
Canadian mortgage terms, explained simply
Principal vs. interest
Principal reduces what you owe. Interest is the cost of borrowing; it is usually a larger share of early payments.
Canadian compounding
Fixed mortgage rates are conventionally quoted with semi-annual compounding, so Numevia converts the quoted rate before calculating monthly payments.
Your clearest next step
What should I calculate next?
A payment is only useful if it also fits your income, debts and available cash.
Mortgage affordability
Check whether this home price fits Canadian debt-service and stress-test limits.
Check affordability →Helpful answers
Frequently Asked Questions
How much will my mortgage payment be?
Your payment depends on the mortgage amount, interest rate, amortization and payment frequency. Changing any of these inputs can materially change both the regular payment and the total interest paid.
How are mortgage payments calculated in Canada?
Canadian mortgage payments are calculated from the principal, interest rate, amortization and payment frequency using Canadian mortgage interest conventions. Fixed-rate mortgages generally use semi-annual compounding not in advance.
Is it better to pay a mortgage monthly or biweekly?
Regular biweekly payments mainly change the timing of payments, while accelerated biweekly payments typically result in the equivalent of an extra monthly payment each year. That can reduce principal faster and shorten the amortization.
Does a longer amortization lower mortgage payments?
Yes. Spreading repayment over more years usually lowers each payment, but it also normally increases the total interest paid because the mortgage balance remains outstanding longer.
How much does the interest rate affect my mortgage payment?
Even a small rate change can have a noticeable effect on a large mortgage. A higher rate generally increases the payment and total borrowing cost, while a lower rate does the opposite if the other inputs stay the same.
Official sources and rule record+
Official sources and rule record
How this estimate works
Payments use the standard Canadian fixed-rate convention: the quoted annual rate is compounded twice per year and converted to a monthly rate. Mortgage default insurance is estimated from the active Canada Mortgage and Housing Corporation (CMHC) premium schedule when the down payment is below 20% and the purchase is eligible.
This does not include provincial sales tax on insurance premiums, land transfer tax, legal fees or lender qualification. The 1.5% closing-cost amount is a planning allowance, not a regulated rate.
Canada Mortgage and Housing Corporation / Société canadienne d’hypothèques et de logementCanada Mortgage and Housing Corporation (CMHC) purchase eligibility and minimum equityView official source →Canada Mortgage and Housing Corporation / Société canadienne d’hypothèques et de logementCanada Mortgage and Housing Corporation (CMHC) mortgage insurance premium scheduleView official source →FCAC / ACFCMortgage terms and amortizationView official source →
ca.mortgage.purchase.2026 · Effective 2024-12-15 · 2026 rules · Last verified August 2026 · Based on official Canadian sources