Mortgage math, done the Canadian way.
Canadian mortgages have their own rules: semi-annual compounding, stress tests, IRD penalties, five-year terms on 25-year loans. Most online tools ignore them. These calculators and guides don't.
Written by Michael Giligson, a financial planner and former mortgage broker with more than 10 years in the industry, and author of Unlocking the Mortgage Code. For borrowers who'd rather understand the numbers than take them on faith.
Same mortgage, two answers
$500,000 · 5.00% · 25 years- American calculator (monthly compounding)
- $2,922.95
- Canadian method (semi-annual, by law)
- $2,908.02
- Overstated over 25 years
- $4,478
- Saved with accelerated bi-weekly
- $60,436
Five calculators for five expensive decisions
Each one comes with the formula, a worked example, and the questions to ask your lender.
- MC-01Mortgage payment Your real payment, and what monthly vs. accelerated bi-weekly is worth over the full amortization.
- MC-02Renewal negotiation Put a dollar figure on the gap between your renewal letter and a better offer.
- MC-03Refinance break-even Estimate the penalty and find out if breaking early actually pays before your term ends.
- MC-04Prepayment What an extra $200 a month or a yearly lump sum saves in interest and years.
- MC-05Reverse mortgage How fast the balance compounds, and how much of the home is left.
Guides
The rules behind the numbers, updated as they change.
- How to negotiate your mortgage renewal
A timeline, a phone script, and how to switch lenders without a stress test.
- Mortgage penalties: three months' interest vs. IRD
Why the same mortgage can cost $6,000 or $9,000 to break, depending on your lender.
- The mortgage stress test, explained
Qualifying at contract rate plus 2%, what it does to your budget, and the exceptions.
- Down payment and mortgage insurance
Minimum down payments, premiums, and the 30-year amortization rules.
- Semi-annual compounding, explained
The one rule that makes American calculators wrong in Canada.
- Reverse mortgages in Canada
How they work, what they cost, and the alternatives to weigh first.
Eight printable worksheets, free
Affordability, closing costs, renewal comparison, refinance break-even, a reverse mortgage checklist, broker vetting, a program list and an annual checkup. Each prints on one page and is meant to be written on and brought to the lender meeting.
The book behind the site
Unlocking the Mortgage Code covers the whole Canadian mortgage system in 22 chapters, from first home to renewal to reverse mortgage, with negotiation scripts, red-flag translations and a worksheet for every decision. These calculators are built from five of its chapters.