How are monthly mortgage payments calculated?

Monthly mortgage payments are calculated using the loan amount, interest rate, and amortization period. The formula accounts for compound interest, dividing your total repayment into equal monthly installments of principal and interest over the loan term.

What is an amortization schedule?

An amortization schedule is a detailed table showing each mortgage payment over the life of the loan. It breaks down each payment into principal and interest portions, and shows the remaining balance after each payment. Early payments are mostly interest, while later payments are mostly principal.

What loan term should I choose for my mortgage?

In Canada, the maximum amortization for insured mortgages is 25 years. A longer amortization means lower monthly payments but more total interest paid. A shorter term means higher monthly payments but significantly less total interest. Use our calculator to compare different scenarios.

Mortgage Payment Calculator - Monthly Payments and Amortization Schedule

icon

CMHC Calculator

Mortgage Calculator

Land-Transfer Calculator

Mortgage Payment Calculator

Calculate your monthly mortgage payments with detailed amortization schedule. Free calculator for Toronto and Ontario home buyers.