# Mortgage Calculator

Term
Rate
Type
Details
Variable
2.55%
Closed
1 year
2.39%
Fixed Closed
2 year
2.43%
Fixed Closed
5 year
2.68%
Fixed Closed

## How to Save \$65,541 on your Mortgage by using a Mortgage Calculator

Find out how much you can save on your mortgage by adding a lump sum payment, switching to accelerated payments, and comparing mortgage rates. Based on an average mortgage value of \$300,000 amortized over 25 years, you could save \$65,541 over the course of your mortgage.

# Compare Mortgage Rates

See how your mortgage rate stacks up! Enter your current mortgage rate in the mortgage calculator above. Once you get to the results, you can compare your mortgage rate with the best mortgage rate in your province.

Canadians who compare mortgage rates can save thousands! In fact, you could save \$34,907 over the course of your mortgage.

# Accelerated Mortgage Payments

Once you've entered your details above, see how much you can save on your mortgage by switching to accelerated mortgage payments. It's possible for the average Canadian to save \$19,887 and cut two years off their mortgage by switching to a rapid payment plan.

# Lump Sum Mortgage Payments

An annual lump sum payment of \$1,000 over 20 years would save the average Canadian \$10,747 in interest over the course of their mortgage.

# Mortgage Calculator FAQs

### How do rapid mortgage payments save you money?

Since you're paying half of your mortgage monthly payment every other week, you end up making an extra payment each year.

### How do lump sum mortgage payments work?

Lump sum mortgage payments are applied directly to the principal of your mortgage, saving you in interest payments.

### What is Amortization?

The amortization is the length of time required before the mortgage will be paid off in full. The amortization period is capped at 25 years for home buyers requiring CMHC coverage (when paying less than 20 per cent on a down payment of their mortgage value), and 30 years for those in conventional mortgages (a down payment of more than 20 per cent of the mortgage value). Depending on your mortgage product's features, you may have the option to pay it off faster, and shorten your amortization. This could save you thousands of dollars in interest over time.

### What is the difference between a Fixed Mortgage Rate and a Variable Mortgage Rate?

#### Fixed Mortgage Rate

A fixed mortgage rate is set for a predetermined length of time, or mortgage term, and is ‘locked in’, meaning it cannot rise or fall during that time period. Five year fixed is the most popular mortgage rate among borrowers. When the mortgage term expires, you can renew with your lender, often at the same rate, or for one even lower. Your monthly mortgage payments will stay the same based on a fixed mortgage rate.

#### Variable Mortgage Rate

Variable mortgage rates are in correlation with the Bank of Canada's interest rate. Whether the variable rate is high or low depends on the status of this overall rate. Signing up for a variable mortgage means your monthly mortgage payment can fluctuate with the market, and may be higher or lower than when you signed up for it. Five years is also the most popular mortgage term for variable mortgage rates.

### What is the most popular fixed mortgage rate term?

A five year fixed mortgage rate is the most popular term.

### What is the most popular variable mortgage rate term?

A five year variable mortgage rate is the most popular term.

### What is a lump sum mortgage payment?

A lump sum mortgage payment is a payment that goes directly towards your mortgage principal. Depending on your mortgage, you can make a certain number of these payments toward your mortgage every year.

### What Is my Mortgage Payment Type?

The mortgage payment type refers to the frequency of your mortgage payments. Mortgage payments can be made on a monthly, bi-weekly, or weekly basis. There are also rapid payment options including: weekly rapid payments, or bi-weekly rapid payments.

Using the Mortgage Calculator to determine your monthly payments is a useful tool when establishing your home budget, and will show you the maximum amount of interest you will pay over the lifetime of your mortgage. Increasing the frequency of your payments puts more money toward your principal amount, and can save you thousands of dollars in interest over time, and decrease your mortgage amortization.

### Mortgage Calculators

Want to find out how much you can afford, or how much it will cost you to break your mortgage? Our Mortgage Affordability Calculator will help you find out you how much you can borrow, and our Mortgage Penalty Calculator will tell you how much it will cost to break your mortgage.

### Are mortgage rates going up or down in Canada?

Want to know the outlook on mortgage rates for the next 30 to 40 days? Read our Mortgage Rate Outlook Panel - where mortgage experts share their view on Canadian mortgage rate trends.

### LEARN: Mortgages

The best mortgage resource for Canadians - learn how to pay off your mortgage faster, why mortgage rates change, the difference between fixed and variable, and more.

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