SEE THE DOLLAR
DIFFERENCE
BETWEEN TWO RATES
Plug in two rates. We do the Canadian math — semi-annual compounding, accelerated payments, term vs. amortization — and tell you what you actually save.
Your Mortgage
Over Your 5-Year Term
If The Rate Held For Full Amortization
Hypothetical — most Canadian rates reset at the end of term. This shows the cost if this rate stayed fixed the whole way.
Amortization Schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Year 1 | $50,251 | $13,954 | $36,297 | $686,046 |
| Year 2 | $50,251 | $14,702 | $35,549 | $671,344 |
| Year 3 | $50,251 | $15,490 | $34,761 | $655,854 |
| Year 4 | $50,251 | $16,320 | $33,931 | $639,534 |
| Year 5Renewal | $50,251 | $17,195 | $33,056 | $622,339 |
| Year 6 | $50,251 | $18,117 | $32,134 | $604,223 |
| Year 7 | $50,251 | $19,088 | $31,163 | $585,135 |
| Year 8 | $50,251 | $20,111 | $30,140 | $565,024 |
| Year 9 | $50,251 | $21,189 | $29,062 | $543,836 |
| Year 10 | $50,251 | $22,324 | $27,927 | $521,511 |
| Year 11 | $50,251 | $23,521 | $26,730 | $497,990 |
| Year 12 | $50,251 | $24,782 | $25,469 | $473,209 |
| Year 13 | $50,251 | $26,110 | $24,141 | $447,099 |
| Year 14 | $50,251 | $27,509 | $22,741 | $419,590 |
| Year 15 | $50,251 | $28,984 | $21,267 | $390,606 |
| Year 16 | $50,251 | $30,537 | $19,713 | $360,068 |
| Year 17 | $50,251 | $32,174 | $18,077 | $327,894 |
| Year 18 | $50,251 | $33,899 | $16,352 | $293,996 |
| Year 19 | $50,251 | $35,716 | $14,535 | $258,280 |
| Year 20 | $50,251 | $37,630 | $12,621 | $220,650 |
| Year 21 | $50,251 | $39,647 | $10,604 | $181,003 |
| Year 22 | $50,251 | $41,772 | $8,479 | $139,231 |
| Year 23 | $50,251 | $44,011 | $6,240 | $95,220 |
| Year 24 | $50,251 | $46,370 | $3,881 | $48,850 |
| Year 25 | $50,246 | $48,850 | $1,395 | $0 |
How The Math Works
Why "effective rate" isn't the same as your quoted rate
Canadian fixed-rate mortgages are compounded semi-annually by law. So a 5.00% quoted rate actually has an effective annual rate of (1 + 0.05/2)² − 1 = 5.0625%. We convert that into a monthly (or bi-weekly, etc.) periodic rate so every payment's interest is calculated correctly.
Term vs. amortization — why both matter
Amortization is how long it takes to pay off the full loan (usually 25–30 years). Term is how long your current rate is locked (usually 5 years). At the end of your term, you renew at whatever rate is available then.
That's why “Over Your Term” savings are what you can actually lock in today. The “Full Amortization” view is hypothetical — useful for understanding rate sensitivity, not a lock.
Accelerated payments
Accelerated bi-weekly = half of your monthly payment, made 26 times per year. Since 26 ÷ 2 = 13 months of payments in 12, you effectively make one extra monthly payment per year. Accelerated weekly is similar: a quarter of the monthly, 52 times = 13 months worth.
Rounding — why payments end in odd cents
Most Canadian lenders round the periodic payment up to the nearest cent, so the final payment is slightly smaller (never a debt leftover). This calculator follows that convention.
Calculations follow the Interest Act (Canada) — semi-annual compounding for fixed-rate mortgages. Figures shown for illustration; actual lender quotes may vary by qualification, fees, and prepayment terms.