Mortgage Calculator Ontario Canada
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Reviewed by Calculator Editorial Team
This mortgage calculator helps you estimate your monthly payments and total interest costs for a home purchase in Ontario, Canada. It accounts for the Ontario mortgage interest deduction and provides an amortization schedule visualization.
How This Mortgage Calculator Works
The mortgage calculator uses standard financial formulas to determine your monthly payments and total interest costs. You input your principal amount, interest rate, amortization period, and down payment percentage, and the calculator provides:
- Monthly payment amount
- Total interest paid over the loan term
- Amortization schedule visualization
- Ontario mortgage interest deduction estimate
Note
This calculator provides estimates only. Actual mortgage terms may vary based on your specific situation and lender requirements.
The Mortgage Formula
The calculator uses the standard mortgage payment formula:
Mortgage Payment 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 (loan term in years × 12)
The Ontario mortgage interest deduction is calculated as 15% of the interest paid each year, with a maximum deduction of $2,400 per year.
Worked Example
Let's calculate a mortgage for a $400,000 home with a 5% interest rate and 25-year amortization:
| Term | Value |
|---|---|
| Principal | $400,000 |
| Interest Rate | 5.00% |
| Amortization Period | 25 years |
| Monthly Payment | $2,395.28 |
| Total Interest Paid | $358,827.20 |
| Total Cost | $758,827.20 |
This example shows that over 25 years, you would pay $2,395.28 per month with $358,827.20 in total interest costs.
Mortgage Comparison Table
Compare different mortgage scenarios with this table:
| Principal | Rate | Term | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $300,000 | 4.50% | 20 years | $1,850.69 | $156,094.80 |
| $300,000 | 4.50% | 25 years | $1,637.26 | $196,575.20 |
| $300,000 | 5.00% | 20 years | $1,955.29 | $176,066.80 |
| $300,000 | 5.00% | 25 years | $1,735.46 | $220,369.20 |
Frequently Asked Questions
How accurate is this mortgage calculator?
This calculator provides estimates based on standard mortgage formulas. Actual mortgage terms may vary depending on your specific situation and lender requirements.
What is the Ontario mortgage interest deduction?
The Ontario mortgage interest deduction allows you to deduct 15% of the interest you pay on your principal residence mortgage from your taxable income, up to a maximum of $2,400 per year.
How does amortization work?
Amortization is the process of paying off a loan over time by making regular payments that include both principal and interest. The calculator shows you how your payments break down over the life of the loan.
What factors affect my mortgage payment?
Your mortgage payment is primarily affected by the principal amount, interest rate, and loan term. Other factors like down payment percentage and prepayment penalties can also influence your payment.