What a Canadian mortgage actually costs: compounded semi-annually, with the CMHC premium financed into the loan where one is required, the balance you renew at when the term ends, and every payment frequency priced side by side.
The two do not cross where most people expect. Early payments are almost all interest.
Only the money that does not come back. Principal is excluded — it is saving, not spending.
Accelerated schedules pay the monthly amount halved or quartered, which is thirteen monthly payments a year rather than twelve. That is a prepayment, and it is where the difference comes from.
| Payment schedule | Each payment | Per year | Paid off in | Total interest | Interest saved |
|---|---|---|---|---|---|
| Monthly | $3,684.64 | $44,216 | 25 years | $425,392 | — |
| Semi-monthly (twice a month) | $1,842.32 | $44,216 | 25 years | $423,652 | $1,739 |
| Bi-weekly (every 2 weeks) | $1,700.60 | $44,216 | 25 years | $423,519 | $1,873 |
| Accelerated bi-weekly | $1,842.32 | $47,900 | 21y 9m | $362,712 | $62,680 |
| Accelerated weekly | $921.16 | $47,900 | 21y 9m | $362,012 | $63,379 |
Payments during the 5-year term are fixed; everything after it depends on the rate at renewal.
| Year | Opening | Payments | Principal | Interest | Closing | Fees | Property tax | Insurance | Non-recoverable | Per month |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $680,000 | $44,216 | $15,603 | $28,613 | $664,397 | $0 | $5,000 | $1,800 | $35,413 | $2,951 |
| 2 | $664,397 | $44,216 | $16,279 | $27,936 | $648,118 | $0 | $5,150 | $1,854 | $34,940 | $2,912 |
| 3 | $648,118 | $44,216 | $16,985 | $27,230 | $631,133 | $0 | $5,305 | $1,910 | $34,445 | $2,870 |
| 4 | $631,133 | $44,216 | $17,722 | $26,494 | $613,411 | $0 | $5,464 | $1,967 | $33,925 | $2,827 |
| 5 | $613,411 | $44,216 | $18,490 | $25,726 | $594,921 | $0 | $5,628 | $2,026 | $33,379 | $2,782 |
| 6 | $594,921 | $44,216 | $19,292 | $24,924 | $575,629 | $0 | $5,796 | $2,087 | $32,807 | $2,734 |
| 7 | $575,629 | $44,216 | $20,128 | $24,087 | $555,501 | $0 | $5,970 | $2,149 | $32,207 | $2,684 |
| 8 | $555,501 | $44,216 | $21,001 | $23,215 | $534,500 | $0 | $6,149 | $2,214 | $31,578 | $2,631 |
| 9 | $534,500 | $44,216 | $21,912 | $22,304 | $512,588 | $0 | $6,334 | $2,280 | $30,918 | $2,577 |
| 10 | $512,588 | $44,216 | $22,862 | $21,354 | $489,726 | $0 | $6,524 | $2,349 | $30,226 | $2,519 |
| 11 | $489,726 | $44,216 | $23,853 | $20,363 | $465,873 | $0 | $6,720 | $2,419 | $29,501 | $2,458 |
| 12 | $465,873 | $44,216 | $24,887 | $19,328 | $440,986 | $0 | $6,921 | $2,492 | $28,741 | $2,395 |
| 13 | $440,986 | $44,216 | $25,966 | $18,249 | $415,019 | $0 | $7,129 | $2,566 | $27,944 | $2,329 |
| 14 | $415,019 | $44,216 | $27,092 | $17,123 | $387,927 | $0 | $7,343 | $2,643 | $27,109 | $2,259 |
| 15 | $387,927 | $44,216 | $28,267 | $15,949 | $359,660 | $0 | $7,563 | $2,723 | $26,234 | $2,186 |
| 16 | $359,660 | $44,216 | $29,493 | $14,723 | $330,167 | $0 | $7,790 | $2,804 | $25,317 | $2,110 |
| 17 | $330,167 | $44,216 | $30,772 | $13,444 | $299,396 | $0 | $8,024 | $2,888 | $24,356 | $2,030 |
| 18 | $299,396 | $44,216 | $32,106 | $12,110 | $267,290 | $0 | $8,264 | $2,975 | $23,349 | $1,946 |
| 19 | $267,290 | $44,216 | $33,498 | $10,718 | $233,792 | $0 | $8,512 | $3,064 | $22,294 | $1,858 |
| 20 | $233,792 | $44,216 | $34,950 | $9,265 | $198,842 | $0 | $8,768 | $3,156 | $21,189 | $1,766 |
| 21 | $198,842 | $44,216 | $36,466 | $7,750 | $162,376 | $0 | $9,031 | $3,251 | $20,031 | $1,669 |
| 22 | $162,376 | $44,216 | $38,047 | $6,169 | $124,329 | $0 | $9,301 | $3,349 | $18,819 | $1,568 |
| 23 | $124,329 | $44,216 | $39,697 | $4,519 | $84,632 | $0 | $9,581 | $3,449 | $17,548 | $1,462 |
| 24 | $84,632 | $44,216 | $41,418 | $2,798 | $43,214 | $0 | $9,868 | $3,552 | $16,218 | $1,352 |
| 25 | $43,214 | $44,216 | $43,214 | $1,002 | $0 | $0 | $10,164 | $3,659 | $14,825 | $1,235 |