| Year / Année | Annual Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Enter a home price to see the schedule. | ||||
How the Calculation Works
Comment fonctionne le calcul hypothécaire
Canadian mortgages use semi-annual compounding — the interest rate compounds twice per year, not monthly. This is mandated by the Interest Act and applies to every residential mortgage in Canada. Most calculators designed for the US use monthly compounding and produce a slightly different payment figure; this calculator applies the correct Canadian method.
To convert from the advertised annual rate to the monthly payment rate:
Monthly rate = (1 + annual rate ÷ 2)1/6 − 1
At 5.00%: monthly rate = (1.025)1/6 − 1 = 0.4124% — slightly less than 5.00 ÷ 12 = 0.4167%
Once you have the monthly rate r and number of payments n, the payment formula is:
Payment = Principal × r ÷ (1 − (1 + r)−n)
where n = amortization years × 12
Worked example — $450,000 home in Quebec
| Input | Value |
|---|---|
| Home price | $450,000 |
| Down payment (20%) | $90,000 |
| Mortgage principal | $360,000 |
| Annual interest rate | 5.00% |
| Amortization — monthly payments | 25 years (300 payments) |
Step 1 — Convert annual rate to monthly
| Calculation | Result |
|---|---|
| Semi-annual factor: 1 + 5.00% ÷ 2 | 1.0250 |
| Monthly equivalent: (1.0250)1/6 − 1 | 0.4124% |
Step 2 — Monthly payment
| Calculation | Result |
|---|---|
| Numerator: $360,000 × 0.004124 | $1,484.64 |
| Denominator: 1 − (1.004124)−300 | 0.70912 |
| Monthly payment | $2,093 |
Step 3 — First month breakdown
| Item | Amount |
|---|---|
| Opening balance | $360,000 |
| Interest: $360,000 × 0.4124% | $1,485 |
| Principal repaid: $2,093 − $1,485 | $608 |
| Balance after month 1 | $359,392 |
In the early years, most of each payment is interest; the principal share grows over time. Extra lump-sum payments applied early have a disproportionately large impact on total interest paid.
Step 4 — Total cost over 25 years
| Item | Amount |
|---|---|
| Total payments: $2,093 × 300 | $627,900 |
| Mortgage principal repaid | $360,000 |
| Total interest paid over 25 years | $267,900 |
Buying a Home in Quebec: What the Mortgage Doesn't Cover
Acheter une propriété au Québec — ce que l’hypothèque ne couvre pas
The mortgage payment is the largest recurring cost, but Quebec buyers face several one-time expenses at closing that regularly catch first-time buyers off guard.
The notary (notaire)
In Quebec, all property transfers are completed before a notary — there are no real estate lawyers closing deals here as in other provinces. The notary drafts and authenticates the deed of sale, performs a title search, registers the transfer at the Registre foncier du Québec, and coordinates the mortgage paperwork with your lender. Notary fees for a standard purchase and mortgage typically run $1,200–$2,000. The buyer chooses and pays the notary.
The welcome tax (taxe de bienvenue)
Quebec levies a land-transfer tax on every property purchase. On a $450,000 home at provincial standard rates, the welcome tax is approximately $4,861. The bill arrives by mail from the municipality several weeks after closing — it is not collected at the notary’s table — so it must be budgeted separately from your down payment. Use the land transfer tax calculator for an exact figure by municipality, including Montreal’s higher luxury brackets.
Caisses populaires and Desjardins
Quebec’s credit union network — primarily Desjardins — provides mortgages to a large share of Quebec homeowners. Caisses populaires are provincially regulated by the Autorité des marchés financiers (AMF), whereas the major chartered banks are federally regulated by OSFI. In practice both offer competitive mortgage products, but prepayment penalty calculations and qualifying criteria can differ. Comparing offers from both a caisse and a chartered bank is worthwhile; Desjardins sometimes offers promotional rates or more flexible terms for existing members.
CMHC insurance
If your down payment is under 20%, CMHC insurance is required. The premium (2.80%–4.00% of the insured mortgage) is added to your loan balance. At 5% down on a $450,000 home, the insured mortgage is $427,500, and the CMHC premium is $12,825 (3.00%), bringing the total loan to $440,325 and increasing your monthly payment to about $2,156.
Frequently Asked Questions
Questions fréquentes — hypothèque au Québec
Don't forget your land transfer tax! / N'oubliez pas la taxe de bienvenue!
Enter a home price above to see your estimated welcome tax.