What is the difference between amortization and mortgage term?
Amortization is the total time to repay the loan (e.g. 25 years).
The term is the contract length (e.g. 5 years) after which the rate is renegotiated.
What down payment should I plan for in Canada?
The minimum down payment in Canada depends on the property price
and current mortgage rules; a lower down payment may require mortgage default insurance (CMHC, Sagen, or
Canada Guaranty), while a higher down payment reduces the loan amount, mortgage payments, and total interest
cost, may influence the interest rate offered, and your lender or mortgage broker can confirm the applicable
thresholds, insurance requirements, and exact impact on rates and fees.
Why do payments change between monthly and biweekly?
Payments are calculated per period (month, every 2 weeks, week).
Paying more frequently reduces the balance sooner, which can lower total interest over time.
Does this include taxes or insurance?
By default, this estimates principal + interest only. If you enable Include CMHC (mortgage
insurance), the mortgage insurance premium is added to the loan amount (typical for insured mortgages).
If you enable Include annual taxes and costs, the calculator will also show an estimated payment
including your yearly property taxes, home insurance, condo fees, and other costs.
What is CMHC (Canada Mortgage and Housing Corporation) mortgage insurance and when is it
required?
In Canada, if your down payment is less than 20% of the purchase price, lenders typically
require mortgage default insurance (CMHC insurance is commonly used as a generic term). The
premium is based on the loan-to-value ratio and is usually added to the mortgage balance (plus applicable
provincial sales tax in some provinces).
How is the CMHC amount estimated here?
When enabled, the calculator estimates the mortgage insurance premium using common
premium-rate schedules as a proxy. Exact premiums can vary by insurer (CMHC, Sagen, Canada Guaranty), and
rules can change, so treat this as an estimate and confirm with your lender or broker.
How do “annual taxes and costs” affect the payment shown?
The values you enter (property taxes, home insurance, condo fees, and other) are annual
totals. The calculator spreads them across your selected payment frequency (monthly, biweekly, or weekly) and
shows an estimated payment including those amounts. The “incl. taxes” number is a first-year estimate.
What do the “increase” options for taxes and costs do?
If you fill in annual increase rates, the calculator will generate a yearly schedule for taxes
and costs (e.g., property tax increases over time). This helps you visualize how non-mortgage costs may change
during the amortization period.
Does this include land transfer tax, GST/HST, or closing costs?
No. This tool focuses on mortgage payments and optional ongoing annual costs. One-time costs
such as land transfer tax, legal fees, inspection fees, and GST/HST (where applicable) are not included.
How should I read the amortization table?
Each row corresponds to a payment period (based on the selected
payment frequency) and shows the portion applied to principal, the portion applied to interest, and the
remaining balance. Amounts are rounded and provided for informational purposes only.
What is the difference between principal and interest?
The principal is the amount borrowed from the lender. Interest is
the cost of borrowing that money, calculated based on the interest rate and the remaining loan balance. Over
time, the portion going toward principal increases while interest decreases.
Are the results 100% accurate?
No. The results are estimates for informational purposes only.
Actual mortgage terms may vary based on lender policies, interest rate type (fixed or variable), promotions,
and individual circumstances.