Compare real payments across banks, credit unions, monoline and private lenders, with the stress test, CMHC insurance and Ontario land transfer tax calculated rather than mentioned. Every figure carries the assumption behind it.
Payment $4,240/mo, $4,240 a month at 5.14%. Cash to close $210,710. Refreshing the lender comparison.
The same number on two rate sheets is not the same cost. A Canadian fixed rate compounds semi-annually by convention; a variable rate compounds monthly. Both are shown below on your loan of $719,200 at 5.14%, so the only thing that differs is the compounding and, on the variable side, what happens when the rate moves.
At the same quoted 5.14%, monthly compounding costs $1,916 more over the term. A variable rate has to be quoted below a fixed one by more than that before it is cheaper on arithmetic alone.
On a variable-rate mortgage with a fixed payment, a rate rise sends more of each payment to interest and less to principal. The trigger rate is where the interest takes the whole payment and the balance stops falling. Yours is +1.97% from here, which is 8 Bank of Canada moves of a quarter point. Past it your lender will ask you to raise the payment to $5,134 a month, add the shortfall to the balance, or both.
An adjustable-rate mortgage, where the payment moves with the rate instead of the amortization, has no trigger rate. It has the same exposure, taken monthly in cash.
Amortization is how long the loan takes to reach zero, and it is the only lever that moves your payment a long way without changing the price. Payment frequency looks cosmetic and is not: an accelerated cadence pays thirteen monthly payments a year instead of twelve, which shortens the amortization without a rate change. Every row is measured against your current choice of 25 years.
| Amortization | Payment | vs yours | Interest, total | vs yours | |
|---|---|---|---|---|---|
| 10 yr | $7,658 | +$3,418 | $199,812 | -$353,109 | |
| 15 yr | $5,720 | +$1,479 | $310,325 | -$242,595 | |
| 20 yr | $4,781 | +$540 | $428,134 | -$124,786 | |
| 25 yr (your choice) | $4,240 | baseline | $552,920 | baseline | |
| 30 yr | $3,899 | -$342 | $684,303 | +$131,383 |
| Cadence | Each payment | Leaves your account a year | Paid off in | Interest saved | |
|---|---|---|---|---|---|
| Monthly12 payments a year | $4,240 | $50,885 | 25 yr 0 mo | baseline | |
| Semi-monthly24 payments a year | $2,118 | $50,831 | 25 yr 0 mo | $1,349 | |
| Biweekly26 payments a year | $1,955 | $50,827 | 25 yr 0 mo | $1,452 | |
| Accelerated biweekly26 payments a year | $2,120 | $55,125 | 21 yr 5 mo43 months sooner | $91,429 | |
| Weekly52 payments a year | $977 | $50,802 | 25 yr 0 mo | $2,075 | |
| Accelerated weekly52 payments a year | $1,060 | $55,125 | 21 yr 5 mo43 months sooner | $92,466 |
An accelerated cadence is not a discount. It is the same money paid faster: the yearly column is what tells you whether the household can carry it. A plain biweekly cadence pays the same annual total as monthly and saves nothing.
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