Generate an Amortization Schedule for Your Current or Future Mortgage
This mortgage loan calculator can show you how much interest you will pay and your principal balance over time. You can even determine the impact of any additional payments to your principal.
Know Your GDS and TDS
Lenders use two ratios to determine how much of a mortgage you can afford.
- Gross Debt Servicing (GDS) Ratio – Your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes, heating expenses and 1/2 condo fees, if applicable.
- Total Debt Servicing (TDS) Ratio - Your entire monthly debt load should not be any more than 40% of your gross monthly income. This incudes housing costs and any other debts such as car payments, personal loans, lines of credit and credit card payments.
These rules are set by Canada Mortgage and Housing Corporation (CMHC). CMHC is Canada’s national housing agency and Canada’s premier provider of mortgage loan insurance, mortgage-backed securities, housing policy and programs, and housing research.
How to Use the Mortgage Loan Calculator
- Enter your information in the fields below (see the definitions below the calculator for mor inforation on each field)
- Once you have entered all the information and selected your options, press the View Report button for a full amortization schedule, either by year or by month.
Definitions
- Mortgage amount
- Original or expected balance for your mortgage.
- Interest rate
- Annual interest rate for your mortgage.
- Amortization period
- The number of years over which you will repay this mortgage. The most common mortgage amortization periods are 20 years and 25 years.
- Mortgage payment
- Your principal and interest payment (PI) per period. Calculated using semi-annual compounding interest.
- Accelerated weekly and bi-weekly payment types
- Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month.
- We calculate an accelerated weekly payment, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan’s principal. The effect can save you thousands in interest and take years off your mortgage.
The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Similar to the accelerated weekly payments you are in effect making two additional payments per year.
- Total payments
- Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.
- Total interest
- Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.
- Prepayment type
- The frequency of prepayment.
- Prepayment amount
- The additional amount that you will pay on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.
- Start with payment
- This is the payment number when your prepayments will begin. For a one-time payment, this is the payment number when the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month’s interest calculation.
- Savings
- Total amount of interest you will save by prepaying your mortgage.
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Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
