Canada Mortgage Prepayment Calculator
Simulate Canadian mortgage lump-sum prepayments (15/15 & 20/20 privileges), accelerated bi-weekly payments, and Interest Rate Differential (IRD) savings in Canadian Dollars (C$).
Canadian Mortgage Details
🇨🇦 Semi-Annual CompoundingAmortization Schedule
Interactive breakdown of balance, interest, and prepayment impact
| Period | EMI Paid | Principal Paid | Extra Prepayment | Interest Paid | Total Payment | Remaining Balance |
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Frequently Asked Questions
What are Canadian mortgage prepayment privileges (15/15 or 20/20 rule)?
Most Canadian closed mortgages (from RBC, TD, Scotiabank, BMO, CIBC) allow you to prepay up to 15% or 20% of your original principal each calendar year without penalty, and increase regular payments by 15% or 20% annually.
How is a Canadian mortgage prepayment penalty calculated?
For variable-rate mortgages, Canadian lenders typically charge 3 months of interest. For fixed-rate mortgages, lenders charge the greater of 3 months' interest or the Interest Rate Differential (IRD), which can be thousands of dollars if current rates have dropped.
How do accelerated bi-weekly payments work in Canada?
Accelerated bi-weekly payments take your normal monthly payment and divide it by 2 (paid 26 times a year). This makes the equivalent of 13 monthly payments annually, shaving approximately 3.5 to 5 years off a 25-year Canadian amortization.
Are Canadian mortgage payments compounded semi-annually?
Yes. By Canadian federal law, fixed-rate mortgages in Canada are compounded semi-annually, not in advance. Our calculator factors in precise Canadian semi-annual compounding math.