Canadian mortgage payment calculator
Payments, first-year interest and balance at renewal, with Canadian semi-annual compounding.
Fixed rate, compounded semi-annually as Canadian fixed-rate mortgages are. Estimates only; your lender's figures govern.
Monthly payment
$2,278.83
Interest in year one
$18,787
Principal in year one
$8,559
Interest over the 5-year term
$89,581
Balance at renewal
$352,851
A US-style calculator with monthly compounding would show a monthly payment $10.85 higher.
For rental property, the interest portion is generally deductible on Form T776 (line 8710); principal isn't.
Why Canadian mortgage math is different
The federal Interest Act requires blended-payment mortgages to state their rate calculated yearly or half-yearly, not in advance, and Canadian fixed-rate mortgages are conventionally compounded semi-annually. A 5% rate compounded twice a year is an effective monthly rate of about 0.412%, slightly less than the 0.417% you'd get by dividing 5% by twelve. Over 25 years that difference adds up, and calculators built for the US market overstate Canadian payments.
What landlords need from a mortgage calculator
- Interest vs principal. For a rental property, mortgage interest is generally a deductible expense on Form T776; principal repayments aren't.
- Balance at renewal. Most Canadian mortgages have a 1- to 5-year term inside a 25- or 30-year amortization. Knowing the balance at renewal tells you how much you'll be refinancing and at what rate risk.
- Payment frequency. Accelerated bi-weekly payments are half the monthly payment paid 26 times a year, which works out to one extra monthly payment a year and a shorter amortization.
Does this work for variable-rate mortgages?
Variable-rate mortgages usually compound monthly and the rate changes over time. This calculator assumes a fixed rate compounded semi-annually.
Is the interest on my rental mortgage deductible?
Interest on money borrowed to earn rental income is generally deductible. Ask your accountant about your situation, especially if the property is partly personal use.
More tools: Rent increase calculator by province · Cap rate and cash flow calculator · Co-owner cost split calculator
See your portfolio reconciled.
Try every feature free for 14 days. Founding members keep 30% off for as long as they stay.