Calgary mortgage guide
How Interest Rates Affect Your Calgary Mortgage
Compare the monthly payment, interest costs and balance left at renewal before you choose a mortgage for your Calgary home.
A small rate change affects the whole loan.
Interest is charged on the balance you still owe. With a repayment schedule held constant, a higher rate generally means a higher payment and more interest. As you pay down the balance, the split between interest and principal changes. FCAC explains mortgage interest.
Start with the $100,000 example below, then enter your own mortgage balance. Keep the other settings unchanged to isolate the cost of a rate difference. The table moves in 0.1 percentage-point steps, such as 5.0% to 5.1%. These are hypothetical comparisons, not advertised offers.
What does a rate change cost?
Examples only—not today’s mortgage offers. All payments are monthly and in Canadian dollars.
At the same rate and amortization, changing the term changes the reporting period—not the monthly payment. Actual rate offers can differ by term.
Your mortgage, year by year.
Change the chart years to zoom in on your term or see more of the repayment schedule. The loan settings above update both charts.
At year 25: $0 remaining, $100,000 principal repaid and $74,481 interest paid.
The dashed line marks the end of your selected term. Beyond that date, this chart assumes the same rate continues only to illustrate the repayment path. Actual renewal rates and payments may change.
View yearly chart values
| Year | Balance | Principal repaid | Interest paid |
|---|---|---|---|
| 0 | $100,000 | $0 | $0 |
| 1 | $97,923 | $2,077 | $4,902 |
| 2 | $95,740 | $4,260 | $9,699 |
| 3 | $93,447 | $6,553 | $14,385 |
| 4 | $91,038 | $8,962 | $18,955 |
| 5 | $88,508 | $11,492 | $23,404 |
| 6 | $85,848 | $14,152 | $27,724 |
| 7 | $83,055 | $16,945 | $31,910 |
| 8 | $80,120 | $19,880 | $35,954 |
| 9 | $77,036 | $22,964 | $39,849 |
| 10 | $73,796 | $26,204 | $43,589 |
| 11 | $70,392 | $29,608 | $47,164 |
| 12 | $66,816 | $33,184 | $50,567 |
| 13 | $63,059 | $36,941 | $53,789 |
| 14 | $59,112 | $40,888 | $56,821 |
| 15 | $54,964 | $45,036 | $59,653 |
| 16 | $50,607 | $49,393 | $62,275 |
| 17 | $46,029 | $53,971 | $64,677 |
| 18 | $41,220 | $58,780 | $66,847 |
| 19 | $36,167 | $63,833 | $68,773 |
| 20 | $30,858 | $69,142 | $70,443 |
| 21 | $25,281 | $74,719 | $71,845 |
| 22 | $19,421 | $80,579 | $72,964 |
| 23 | $13,264 | $86,736 | $73,787 |
| 24 | $6,796 | $93,204 | $74,298 |
| 25 | $0 | $100,000 | $74,481 |
See the monthly cost of each rate.
This chart uses the rate range below, in 0.1 percentage-point steps. The table provides exact amounts to the cent.
Compare rates in 0.1 percentage-point steps.
For example, 5.0% to 5.1% is a 0.1 percentage-point increase. The $100,000 column stays fixed; the other columns use your mortgage balance and term.
| Rate | Monthly / $100K | Your monthly payment | Change from selected rate | Your term interest | Your ending balance |
|---|---|---|---|---|---|
| 3.0% | $473.25 | $473.25 | -$108.36 | $13,869.34 | $85,474.61 |
| 3.1% | $478.39 | $478.39 | -$103.21 | $14,341.68 | $85,638.19 |
| 3.2% | $483.57 | $483.57 | -$98.04 | $14,814.55 | $85,800.52 |
| 3.3% | $488.77 | $488.77 | -$92.83 | $15,287.93 | $85,961.60 |
| 3.4% | $494.01 | $494.01 | -$87.60 | $15,761.82 | $86,121.42 |
| 3.5% | $499.27 | $499.27 | -$82.33 | $16,236.20 | $86,279.98 |
| 3.6% | $504.56 | $504.56 | -$77.04 | $16,711.07 | $86,437.29 |
| 3.7% | $509.88 | $509.88 | -$71.72 | $17,186.40 | $86,593.33 |
| 3.8% | $515.23 | $515.23 | -$66.37 | $17,662.20 | $86,748.12 |
| 3.9% | $520.61 | $520.61 | -$60.99 | $18,138.44 | $86,901.65 |
| 4.0% | $526.02 | $526.02 | -$55.58 | $18,615.13 | $87,053.92 |
| 4.1% | $531.46 | $531.46 | -$50.15 | $19,092.24 | $87,204.92 |
| 4.2% | $536.92 | $536.92 | -$44.69 | $19,569.77 | $87,354.68 |
| 4.3% | $542.41 | $542.41 | -$39.20 | $20,047.71 | $87,503.17 |
| 4.4% | $547.93 | $547.93 | -$33.68 | $20,526.04 | $87,650.41 |
| 4.5% | $553.47 | $553.47 | -$28.13 | $21,004.76 | $87,796.39 |
| 4.6% | $559.05 | $559.05 | -$22.56 | $21,483.86 | $87,941.11 |
| 4.7% | $564.65 | $564.65 | -$16.96 | $21,963.32 | $88,084.59 |
| 4.8% | $570.27 | $570.27 | -$11.33 | $22,443.14 | $88,226.81 |
| 4.9% | $575.93 | $575.93 | -$5.68 | $22,923.31 | $88,367.78 |
| 5.0% · selected | $581.60 | $581.60 | $0.00 | $23,403.81 | $88,507.51 |
| 5.1% | $587.31 | $587.31 | $5.71 | $23,884.63 | $88,645.99 |
| 5.2% | $593.04 | $593.04 | $11.44 | $24,365.77 | $88,783.22 |
| 5.3% | $598.80 | $598.80 | $17.19 | $24,847.22 | $88,919.22 |
| 5.4% | $604.58 | $604.58 | $22.98 | $25,328.96 | $89,053.98 |
| 5.5% | $610.39 | $610.39 | $28.79 | $25,810.99 | $89,187.50 |
| 5.6% | $616.23 | $616.23 | $34.62 | $26,293.30 | $89,319.79 |
| 5.7% | $622.08 | $622.08 | $40.48 | $26,775.87 | $89,450.85 |
| 5.8% | $627.97 | $627.97 | $46.36 | $27,258.70 | $89,580.69 |
| 5.9% | $633.87 | $633.87 | $52.27 | $27,741.78 | $89,709.31 |
| 6.0% | $639.81 | $639.81 | $58.20 | $28,225.10 | $89,836.70 |
| 6.1% | $645.76 | $645.76 | $64.16 | $28,708.65 | $89,962.89 |
| 6.2% | $651.74 | $651.74 | $70.14 | $29,192.43 | $90,087.86 |
| 6.3% | $657.75 | $657.75 | $76.14 | $29,676.41 | $90,211.63 |
| 6.4% | $663.77 | $663.77 | $82.17 | $30,160.60 | $90,334.19 |
| 6.5% | $669.82 | $669.82 | $88.22 | $30,644.99 | $90,455.56 |
| 6.6% | $675.90 | $675.90 | $94.29 | $31,129.56 | $90,575.73 |
| 6.7% | $681.99 | $681.99 | $100.39 | $31,614.31 | $90,694.72 |
| 6.8% | $688.11 | $688.11 | $106.51 | $32,099.23 | $90,812.52 |
| 6.9% | $694.25 | $694.25 | $112.65 | $32,584.31 | $90,929.14 |
| 7.0% | $700.42 | $700.42 | $118.81 | $33,069.54 | $91,044.60 |
Calculation assumptions and what is excluded
Each row assumes its rate stays constant for the selected term, payments arrive monthly at the end of each period, and there are no extra payments. Interest is converted from the selected annual compounding convention to a monthly rate. Calculations keep full precision and display rounded cents; lender schedules may round differently.
Payments include principal and interest only. Property taxes, condo fees, home insurance, legal fees and lender charges are excluded. Add any financed mortgage default-insurance premium to the entered balance. This is a payment comparison, not a mortgage approval or a stress-test calculation. No future renewal rate is predicted.
Term and amortization answer different questions.
Your term is the length of your current mortgage agreement. Amortization is the estimated repayment period used to calculate payments. A five-year term with a 25-year amortization usually leaves a balance to renew or repay after five years.
A longer amortization generally reduces the payment but increases interest if the other assumptions stay the same. Changing only the term in this calculator changes how many payments are counted, not their size. A real lender may quote different rates for different terms, so enter each actual quote separately. Source: FCAC on terms and amortization.
Fixed and variable rates behave differently.
A fixed rate stays unchanged during its term. A variable rate can change with the lender’s prime rate and the agreement’s discount or premium. Ask how often changes apply. Your lender’s prime rate and the Bank of Canada’s policy rate are different rates.
Some variable mortgages change the payment when rates change. Others keep payments fixed and change the amount going to principal. If a fixed payment no longer covers the interest, the contract’s trigger provisions matter. Ask what payment increases or other action the lender can require. This calculator compares constant-rate scenarios; it does not simulate those contracts. Source: FCAC on mortgage choices.
Look beyond the lowest advertised rate.
Ask the lender or broker to put these answers beside each rate quote. Compare the same mortgage amount, amortization and intended move date. A rate is easier to assess when the restrictions and charges are visible.
- Breaking the mortgage: request a written payout estimate if you may sell or refinance before maturity. Closed-mortgage penalties can be substantial; ask how three months’ interest or an interest-rate differential applies to your contract.
- Extra payments: check lump-sum and payment-increase privileges, when you can use them, and charges above the limits.
- Moving homes: ask whether the mortgage is portable, what approval is required, the allowed timing between closings and what happens if you need a larger loan.
- Other charges: ask about discharge, transfer, appraisal, legal and administration costs, and any cashback repayment if you leave early.
FCAC: prepayment penalties and privileges; FCAC: renewal and switching costs.
Test renewal pressure before choosing your budget.
Use your current remaining balance and amortization for today’s payment comparison. The end-of-term balance is the starting point for a renewal scenario: enter that balance, reduce amortization by the elapsed term, and try a higher rate. If the loan is fully repaid, there is no renewal balance to finance.
For example, after five years of a 25-year schedule, use 20 years remaining rather than restarting at 25. Restarting the clock could make a payment look easier while stretching repayment. The calculator does not predict which rate will be available at renewal.
Start comparing renewal options before the maturity date. Look at the rate, conditions and switching costs together rather than automatically accepting the first renewal offer. Read FCAC’s renewal guidance.
Keep your household budget separate from the loan payment.
The table includes mortgage principal and interest only. Add property taxes, heating, home insurance, condominium fees where relevant, maintenance and a reserve to your monthly plan. If mortgage default insurance is financed, include that premium in the balance you enter.
A payment estimate does not tell you whether you qualify for the mortgage. Income, debts, credit, the property and applicable lender qualification rules still matter. Use the Calgary affordability guide to prepare for that conversation.
Planning a Calgary sale and another purchase?
Before you commit to the next home, get your lender’s payout estimate and compare what you may keep after selling costs. A small rate saving can be outweighed by a large penalty or an awkward gap between possession dates.
Don can help connect your current home’s likely sale price with the next purchase. Your lender or mortgage broker confirms financing, and your lawyer confirms closing requirements. Read Calgary closing costs and buying and selling at the same time.