Ontario Mortgage Calculator 2019

This Ontario mortgage calculator helps you estimate your monthly payments, total interest paid, and amortization schedule for a home purchase in 2019. The calculator uses the standard mortgage payment formula and assumes a fixed interest rate.

How to Use This Calculator

To calculate your mortgage payments:

Enter the home price in Canadian dollars
Enter your down payment amount or percentage
Select the amortization period (term length)
Enter the current interest rate
Click "Calculate" to see your results

The calculator will show your monthly payment, total interest paid, and principal paid over the life of the mortgage.

Mortgage Formula

The standard mortgage payment formula is:

Mortgage Payment Formula

M = P [i(1 + i)ⁿ] / [(1 + i)ⁿ - 1]

Where:

M = Monthly payment
P = Principal loan amount (home price - down payment)
i = Monthly interest rate (annual rate ÷ 12)
n = Number of payments (amortization period × 12)

This formula calculates the fixed monthly payment required to pay off the loan over the selected term.

Worked Example

Let's calculate a mortgage for a $400,000 home with a 20% down payment, 25-year amortization, and 3.5% interest rate.

Down payment: $400,000 × 20% = $80,000
Principal: $400,000 - $80,000 = $320,000
Monthly rate: 3.5% ÷ 12 = 0.0029167
Number of payments: 25 × 12 = 300
Using the formula: M = $320,000 [0.0029167(1 + 0.0029167)³⁰⁰] / [(1 + 0.0029167)³⁰⁰ - 1]
Calculated monthly payment: $1,875.54

Over 25 years, you would pay $562,662 in total payments, with $320,000 going toward the principal and $242,662 in interest.

Frequently Asked Questions

What is the difference between amortization and term?: Amortization refers to the length of time it takes to pay off the mortgage, while term refers to the length of the initial loan agreement. In Ontario, these are typically the same.
How does a variable rate mortgage work?: A variable rate mortgage has an interest rate that changes based on market conditions. Your payments will increase or decrease with the rate changes.
What are closing costs?: Closing costs are additional fees paid at the time of closing, including legal fees, land transfer taxes, and mortgage registration fees. These typically range from 2% to 5% of the home price.
Can I pay off my mortgage early?: Yes, you can pay off your mortgage early without penalty. This can save you money on interest, but you may lose some of the tax benefits associated with mortgage interest payments.
What happens if I can't make my mortgage payments?: If you can't make your payments, contact your lender immediately. They may offer payment arrangements, forbearance, or other solutions to help you avoid foreclosure.