Question 1

Does this include property taxes and insurance?

Accepted Answer

No. This calculator shows mortgage principal and interest only. Property taxes, home insurance, and condo fees are separate costs. A common rule of thumb: add 1.0-1.5% of the home's value annually for taxes and insurance, then divide by 12 for a monthly estimate.

Question 2

Can I model prepayments?

Accepted Answer

Yes. The calculator supports lump-sum prepayments (e.g., a $10,000 annual bonus) and recurring extra payments (e.g., $200/month). Accelerated payment frequencies are also available.

Question 3

Is this the same as lender calculations?

Accepted Answer

It follows standard Canadian mortgage math including semi-annual compounding per the Interest Act. Individual lenders may round differently or use proprietary rate lock-in periods. Use as a planning tool and confirm with your mortgage commitment letter.

Question 4

What's the difference between bi-weekly and accelerated bi-weekly?

Accepted Answer

Regular bi-weekly: monthly payment x 12 / 26 — same total per year. Accelerated bi-weekly: monthly payment / 2, paid every two weeks — equals 13 monthly payments per year instead of 12, which accelerates your payoff.

Question 5

How does semi-annual compounding affect my payment?

Accepted Answer

Canadian mortgages compound semi-annually by law, even though payments are made more frequently. Your quoted rate is converted to an effective annual rate before calculating the periodic payment. The calculator handles this automatically.

Prepayments

Your term at a glance

Mortgage payment calculator

Prepayments

Your term at a glance