Determining your payment
Jamie David, Sr. Director of Marketing and Mortgages
When you purchase a property and take on a mortgage, you will need to make regular payments on it until the loan is paid off. There are four things that will affect the amount of your mortgage payment:
- Mortgage Amount - Your mortgage amount is your home purchase price minus your down payment. A more expensive home or smaller down payment means a larger mortgage amount and, therefore, a larger payment. In Canada, if you make a down payment of less than 20%, you will also have to pay mortgage default insurance (often known as CMHC insurance), which is added to your total mortgage amount.
- Mortgage Rate - The higher the interest rate, the higher your mortgage payment will be. Click here to find the best mortgage rates in your province.
- Amortization Period - The longer the amortization period, the lower your mortgage payment will be. However, a longer amortization period will cause you to pay more interest over the life of the mortgage.
- Payment Frequency - The payment frequency you choose affects how much each payment will be and how many payments you will make in one year.
To see how these four factors affect your mortgage payment, check out our mortgage payment calculator.
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Mortgage Payment Frequency Options
Your mortgage payment amount and how often you make payments depends on the mortgage payment frequency option you choose.
Here is a summary of the different mortgage payment frequencies:
What is a monthly mortgage payment?
What is a bi-weekly mortgage payment?
What is an accelerated bi-weekly mortgage payment?
What is a weekly mortgage payment?
What is an accelerated weekly mortgage payment?
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