Mortage Calculator Canada Ontario

This mortgage calculator helps you estimate your monthly payments for a home in Ontario, Canada. Simply enter your loan amount, interest rate, and term to see your estimated monthly payment, total interest paid, and amortization schedule.

How to Use This Calculator

Using this mortgage calculator is simple:

Enter the loan amount (the total amount you're borrowing).
Enter the interest rate (the annual percentage rate).
Select the amortization period (the length of your mortgage in years).
Click the Calculate button to see your results.

The calculator will display your estimated monthly payment, total interest paid over the life of the loan, and a breakdown of your payments.

Formula Used

The mortgage payment is calculated using the following formula:

M = P [ i(1 + i)ⁿ ] / [ (1 + i)ⁿ - 1 ]

Where:

M = Monthly payment
P = Principal loan amount
i = Monthly interest rate (annual rate divided by 12)
n = Number of payments (amortization period in years multiplied by 12)

This formula accounts for the interest on both the original principal and the interest that accumulates over time.

Worked Example

Let's calculate a mortgage payment for a $300,000 loan with a 5% annual interest rate over 25 years.

Convert the annual interest rate to a monthly rate: 5% ÷ 12 = 0.4167% or 0.004167 in decimal.
Calculate the number of payments: 25 years × 12 = 300 payments.
Plug the values into the formula:

M = $300,000 [ 0.004167(1 + 0.004167)³⁰⁰ ] / [ (1 + 0.004167)³⁰⁰ - 1 ]
The calculation results in a monthly payment of approximately $1,832.89.

Over the 25-year term, you would pay a total of $699,836, with $399,836 going toward interest.

Frequently Asked Questions

What is a mortgage amortization schedule?

A mortgage amortization schedule shows how your loan is paid off over time, breaking down each payment into the portion that goes toward principal and the portion that goes toward interest. This helps you understand how quickly you're reducing your loan balance.

How does the interest rate affect my monthly payment?

A higher interest rate means more of each payment goes toward interest, which increases your total interest costs and your monthly payment. Conversely, a lower interest rate reduces both your monthly payment and total interest paid.

What is the difference between fixed and variable rate mortgages?

A fixed-rate mortgage has the same interest rate for the entire term, providing predictable payments. A variable-rate mortgage has an interest rate that can change, which can lead to higher or lower payments over time.