This trips up anyone using an American calculator. By law, Canadian fixed-rate mortgages are compounded semi-annually, not monthly. The effect is small but real: a 5% Canadian mortgage carries a slightly lower payment than a 5% US mortgage of the same size and term.

This calculator uses the correct Canadian formula. If the number here differs slightly from a US site or a generic spreadsheet, this one is right for a Canadian mortgage.

Switching from monthly to accelerated bi-weekly is the closest thing to a free win in mortgage financing. You pay half your monthly payment every two weeks — 26 payments a year, which equals 13 monthly payments instead of 12.

That one extra payment per year, applied entirely to principal, typically shortens a 25-year mortgage by three to four years and saves tens of thousands in interest. Most people never notice the difference in their budget because it aligns with a bi-weekly pay cycle.

Note the word accelerated. Plain “bi-weekly” simply divides the annual total differently and saves you almost nothing.

This figure is principal and interest only. Your actual monthly housing cost also carries property tax (often $300 to $600 a month), home insurance, heat and utilities, and condo fees where they apply.

Lenders count those in your qualification, and so should your budget. To see the whole picture including the cash needed on closing day, run the closing cost calculator, or build a full mortgage plan.