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Mortgage Amortization Calculator | Canada
Mortgage Amortization Calculator is designed to help you estimate borrowing costs, compare repayment scenarios, and sense-check property finance decisions. It works best when you want a fast, comparable estimate before you speak to a lender, provider, adviser, employer, or supplier. Use it as a planning tool rather than a final quote. This version is framed for Canada users where regional assumptions matter, so you can test a few scenarios and see how changes in the main inputs affect the outcome.
Interpretation
What your result means
Use the notes below to understand the main figures in your result and when this calculator is most useful.
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
Result
Use this metric to compare scenarios side by side and understand how the key drivers affect the final outcome.
Next steps
What to do next
Continue with the most relevant next step based on your result.
Example
A realistic Canada planning example
A realistic example to help you understand how the numbers fit together.
Loan Amount (£)
CA$400,000
Annual Interest Rate (%)
5%
Term (Years)
25 years
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption.
Avoid mistakes
Common mistakes
A few things that often lead to misleading or incomplete results.
FAQ
Frequently asked questions
Helpful answers to common questions about this calculator.
What is mortgage amortization?
Amortization is the process of paying off a mortgage through regular monthly payments. Each payment covers both interest and a portion of the principal, with the interest portion decreasing over time.
How does a mortgage amortization schedule work?
An amortization schedule shows each monthly payment broken down into principal and interest. In the early years, most of your payment goes towards interest, shifting towards principal over time.
What is a typical UK mortgage term?
The most common UK mortgage term is 25 years, though terms of 30-35 years are increasingly popular to reduce monthly payments. Shorter terms mean higher payments but significantly less total interest paid.
Can I overpay my mortgage to reduce the term?
Most UK mortgage lenders allow overpayments of up to 10% of the outstanding balance per year without early repayment charges. Overpaying can reduce both the term and total interest significantly.
What is the difference between repayment and interest-only mortgages?
A repayment mortgage pays off the full loan over the term through amortization. An interest-only mortgage only covers interest each month, requiring a separate plan to repay the capital at the end.
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