GlenCalc

Canadian mortgage calculator

Fixed-rate mortgages in Canada compound interest semi-annually by law, not monthly, so US calculators give slightly wrong payments. This one uses the Canadian method and shows how accelerated schedules shorten the amortization.

Your answer

Monthly payment$2,848.54
Paid off in25 years
Monthly payment, for comparison$2,848.54
Total interest$354,562.54
Effective annual rate4.8474 %
  • Amounts are in Canadian dollars; the $ sign is used for brevity.

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How we worked it out

Updated as you change the numbers.

  1. Effective annual rate = (1 + 4.79% ÷ 2)² − 1 = 4.8474%.
  2. Rate per payment = (1 + effective)^(1/12) − 1 = 0.39524%.
  3. Payment = $2,848.54 over 300 payments.

Method and assumptions

The Interest Act requires fixed-rate mortgages to state the rate compounded semi-annually (or yearly). The calculator converts the quoted rate to the equivalent rate for your payment period. Accelerated biweekly and weekly payments are the monthly payment divided by 2 or 4, paid 26 or 52 times a year, which pays off the mortgage years sooner.

Questions

How much faster do accelerated biweekly payments pay off a mortgage?

On a $500,000, 25-year mortgage at 4.79%, accelerated biweekly payments pay it off in about 21.6 years instead of 25.

Sources

Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.

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