What Would My Mortgage Actually Cost?

Compounding: US mortgages compound monthly. Your yearly rate is simply divided by 12 to get the monthly rate used in every calculation.

PMI: If you put down less than 20%, lenders require Private Mortgage Insurance. It's an ongoing monthly cost — but by law it must automatically end once your loan balance drops to 78% of your home's original value, so it isn't forever.

Rate for the full term: A US 30-year fixed rate genuinely stays fixed for all 30 years (if you keep the loan that long) — the "total interest" figure below reflects a real, lockable outcome.

Compounding: Canadian law requires fixed-rate mortgages to compound semi-annually, not monthly, even though you still pay monthly. This calculator converts that semi-annual rate into the correct equivalent monthly rate before doing any math — it's not the same formula as a US mortgage, just applied to a Canadian number.

Mortgage default insurance: Under 20% down, your mortgage must be insured. The premium (2.80%-4.00% of your loan, depending on your down payment) gets added directly to what you owe — it's not a separate monthly bill, but it does make your payments slightly bigger since you're borrowing more.

Term vs. amortization — the big one: Your "amortization" (e.g. 25 years) is how long it would take to pay off the loan at this rate. But your actual rate is only locked for your "term" (usually 5 years) — then it renews at whatever the going rate is. The "total interest over 25 years" figure is a useful reference point, but it assumes your rate never changes, which almost never happens in Canada. That's why this tool also shows your balance at renewal.