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QUÉBEC MORTGAGE GUIDE

Calculate a mortgage payment in Québec: formula, example and interest

For a Canadian fixed-rate mortgage, the annual nominal interest rate is generally compounded semi-annually. The periodic rate is i = (1 + annual rate ÷ 2)^(2 ÷ payments per year) − 1. Principal and interest payments are then calculated over the financed amount and the total amortization periods.

Use these explanations to compare scenarios in our calculator without registering. Estimates are not lending offers or binding mortgage terms.

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How are Canadian mortgage payments calculated?

For a Canadian fixed-rate mortgage, the annual nominal interest rate is generally compounded semi-annually. The periodic rate is i = (1 + annual rate ÷ 2)^(2 ÷ payments per year) − 1. Principal and interest payments are then calculated over the financed amount and the total amortization periods.

Monthly versus biweekly payments

Monthly means twelve payments per year; regular biweekly means twenty-six. Accelerated biweekly payments are generally half the monthly amount, or approximately thirteen monthly payments over a year. This can reduce interest, subject to contract rules.

Why the mortgage renewal balance matters

A 25-year amortization usually includes multiple shorter mortgage terms, often five years. Understanding the principal outstanding when the term ends is as important as comparing payments. Future interest rates are unknown, so lifetime projections at a constant rate are illustrative.

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A practical comparison to make

Compare two mortgage offers with the same principal, amortization and payment frequency. A smaller payment may still lead to greater interest costs and a higher balance at renewal.

Check the free mortgage calculator with your own figures. Its optional homeownership-budget section also allows you to enter taxes, insurance and condo fees without sending data to a server.

Worked example: a $450,000 home

Home price $450,000, 10% down payment ($45,000), illustrative fixed annual rate of 4.50%, 25-year amortization and a five-year term. The $12,555 insurance premium is financed.
MetricEstimated amount
Mortgage principal$417,555.00
Estimated monthly payment$2,311.05
Remaining balance after five years$366,598.21
Interest during first five years$87,706.45

These are projections using the stated fixed rate over the term; actual contract terms vary. Québec tax on the mortgage-insurance premium is paid separately.

Computed with the same Canadian semiannual-compounding engine as Isabelle’s calculator; figures are rounded to cents.

Official sources

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