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# Alberta Mortgage Payment Calculator

Use this free calculator to estimate your monthly mortgage payments, and see how rates and amortization can affect the total cost of a home loan.

### Mortgage Summary

#### Estimated Payment

##### The following items show your expected payment schedule over the full amortization period.

Doughnut chart

\$2,763

Monthly Payment

Principal & Interest
\$2,762.62
Mortgage Insurance
\$0
##### Mortgage details
Home Price
\$500,000
Down Payment
\$25,000 (5%)
Total Loan Cost
\$828,787.10
Loan Amount
\$475,000
Total Interest Cost
\$353,787.10
Interest Rate
5%
Mortgage Term
5 Years
Amortization Period
25 Years
Payment Frequency
Monthly
No. of Payments
300

### Amortization Schedule

Balance remaining in undefined

#### Payments Breakdown

##### Balance
2023\$33,151.48\$9,866.97\$23,284.52\$465,133.03
2024\$33,151.48\$10,366.48\$22,785.00\$454,766.55
2025\$33,151.48\$10,891.29\$22,260.20\$443,875.26
2026\$33,151.48\$11,442.66\$21,708.83\$432,432.60
2027\$33,151.48\$12,021.94\$21,129.54\$420,410.66

Term Total

\$165,757.42\$54,589.34\$111,168.08\$420,410.66

The line above displays the totals at the end of your mortgage term. At this time, you will renew your mortgage and choose among the rates that are available. The following analysis assumes you will lock in the same rate for the remainder of the amortization period, which may not be possible.

2028\$33,151.48\$12,630.55\$20,520.93\$407,780.11
2029\$33,151.48\$13,269.98\$19,881.51\$394,510.13
2030\$33,151.48\$13,941.77\$19,209.72\$380,568.36
2031\$33,151.48\$14,647.57\$18,503.91\$365,920.79
2032\$33,151.48\$15,389.10\$17,762.38\$350,531.69
2033\$33,151.48\$16,168.18\$16,983.31\$334,363.51
2034\$33,151.48\$16,986.69\$16,164.79\$317,376.82
2035\$33,151.48\$17,846.64\$15,304.84\$299,530.18
2036\$33,151.48\$18,750.13\$14,401.36\$280,780.05
2037\$33,151.48\$19,699.35\$13,452.13\$261,080.70
2038\$33,151.48\$20,696.63\$12,454.85\$240,384.06
2039\$33,151.48\$21,744.40\$11,407.08\$218,639.66
2040\$33,151.48\$22,845.21\$10,306.27\$195,794.45
2041\$33,151.48\$24,001.75\$9,149.73\$171,792.70
2042\$33,151.48\$25,216.84\$7,934.65\$146,575.86
2043\$33,151.48\$26,493.44\$6,658.04\$120,082.42
2044\$33,151.48\$27,834.67\$5,316.81\$92,247.75
2045\$33,151.48\$29,243.80\$3,907.68\$63,003.95
2046\$33,151.48\$30,724.27\$2,427.22\$32,279.68
2047\$33,151.48\$32,279.68\$871.80\$0.00

## How to use this Alberta mortgage payment calculator

1. In the “Property Value” field, enter the price of the home you intend to buy or use the slide tool to indicate a price.
2. In the “Down Payment” field, enter the amount of your down payment. You can use a dollar figure or a percentage of the home’s listing price.
3. In the “Interest Rate” field, enter a potential mortgage interest rate. If you’re unsure of what value to enter, check Canada’s current mortgage rates to get an idea of a reasonable number.
4. In the “Mortgage Term” field, choose how long you’d like to go before needing to renew your mortgage.
5. In the “Rate Type” field, indicate whether your future mortgage will have fixed or variable rates.
6. In the “Amortization Period” field, choose the total length of your mortgage loan.
7. In the “Payment Frequency” field, indicate how often you’ll make a mortgage payment.

Together these inputs are used to estimate how much a mortgage in Alberta might cost you every month, as well as the entire lifetime of the loan.

### Reasons to use an Alberta mortgage calculator

• Understand how interest rates affect total mortgage costs.
• See the impact of increasing your down payment.
• Choose a suitable amortization period and mortgage term.
• Determine a payment frequency that aligns with your finances and home buying goals.
• Estimate your general mortgage budget before reaching out to lenders.

## Costs included in a mortgage payment

• Principal. The principal is the original amount of money you borrow. If you purchase a \$500,000 home and borrow \$400,000 to do so, that \$400,000 is your principal.
• Interest. Interest is the amount a lender charges a borrower for providing a loan. It’s based on a percentage of the principal and is compounded. That means you pay interest on your outstanding interest charges.
• Mortgage insurance. Mortgage insurance, also known as “mortgage default insurance”, is an additional cost paid by homeowners who purchase a home with a down payment smaller than 20%. Mortgage insurance can be paid off upfront or added to a borrower’s monthly mortgage payment.
• Alberta property tax. In some cases, home owners can pay a portion of their municipal property tax as part of their monthly mortgage payments.

### Fixed vs. variable interest rates

When choosing a mortgage, you’ll have to select the type of interest rate you’d like to pay. In Canada, the two main types are fixed and variable.

With a fixed rate mortgage, your monthly mortgage payment stays the same for the entirety of your mortgage term. Interest rates may rise or fall during that time, but your payment will not. Interest is compounded semi-annually, or twice a year, with fixed-rate mortgages

If you choose a variable rate mortgage, the interest rate you pay will fluctuate based on your bank’s prime rate. If the prime rate increases or decreases, so will your interest rate. If you have a variable rate mortgage with fixed payments, your monthly payments will remain the same, but the amount of your payment that goes towards interest will be affected whenever the prime rate shifts.

For variable-rate mortgages, interest may compound more frequently than with a fixed rate mortgage.The more often interest compounds, the more you’ll wind up paying.

### Payment frequency

An important part of the mortgage process is determining how often you’d like to make your mortgage payments. Typically, the more frequent your payments are, the quicker you’ll pay off your mortgage — and the more you’ll save in interest charges.

Mortgage payment frequencies in Canada include:

• Weekly (52 payments per year).
• Bi-weekly (once every 14 days, or 26 payments per year).
• Semi-monthly (two payments a month, or 24 payments per year).
• Monthly (12 payments per year).

### Mortgage term vs. amortization

Two choices you’ll have to make when applying for a mortgage are the length of your mortgage term and your amortization period.

The mortgage term is how long your current mortgage, including the interest rate and payment frequency, is in effect. Once your term expires, you’ll have to renew your mortgage with your lender, renegotiate a new agreement or move your mortgage to another lender.

Amortization refers to how long it takes to pay off your mortgage in full. In Canada, the longest amortization you can get with a down payment of less than 20% is 25 years.

## Ways to reduce your monthly mortgage payment in Alberta

### Make a bigger down payment

Saving up and making a larger down payment will reduce the amount of money you need to borrow and creates several opportunities to save money. You could arrange a shorter amortization period, make smaller monthly payments or possibly be offered a lower interest rate by your lender.

### Negotiate a lower interest rate

Depending on what your lender offers, you may have the option of choosing a mortgage that charges a lower interest rate. Shaving even a few percentage points off an interest rate can save you thousands of dollars over the course of your mortgage, so it’s always worth asking for a lower rate.

### Choose a longer amortization period

Opting for a longer amortization period will result in a greater number of payments and more interest charges overall, but spreading your mortgage out over a longer period will also result in smaller monthly payments.

You might end up paying more for your mortgage than you would with a shorter amortization, but the extra breathing room every month can be a game-changer if you’re a homeowner on a tight budget.

### Refinance (if possible)

Refinancing is essentially starting a new mortgage, which gives you an opportunity to negotiate a lower interest rate and a new payment schedule, both of which can help lower your monthly obligations.

Getting a mortgage in Alberta isn’t so different from what you’d experience in other provinces. Some lenders may offer slightly different products or interest rates in Alberta, but the overall process — and the regulations governing it — remain the same.

One advantage homebuyers in Alberta get to enjoy is avoiding the payment of a land transfer tax once they’ve purchased a home. Instead, the province charges home buyers a land title transfer fee, which can cost significantly less than the land transfer fees buyers pay in provinces like Ontario and British Columbia.

This fee involves two components, one based on home price and one based on the mortgage principal. The formula for each is the same: a \$50 base fee plus \$2 for every \$5,000 in value.

How much will a \$500,000 mortgage cost every month?

How much your mortgage costs depends on the interest rate offered by your lender and the length of your mortgage. A \$500,000 mortgage taken out at an interest rate of 4% and paid off over 25 years would cost around \$2,630 per month. The same mortgage taken out at 6% would cost almost \$3,200. If those mortgages amortized over 20 years, the monthly payments would be \$3,021 and \$3,560, respectively

How much will a \$300,000 mortgage cost every month?

Monthly mortgage payments depend heavily on interest rate and the length of your mortgage. A \$300,000 mortgage with an interest rate of 4% that’s paid off over 20 years would cost around \$1,812 every month; at 6%, monthly payments would be about \$2,136. Spread those mortgages out over 25 years and the monthly payments fall to \$1,578 and \$1,919, respectively.

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## Compare the Best Mortgage Rates in Alberta

Compare Alberta mortgage rates from Canada’s top lenders and brokers in minutes. Easily find the best mortgage rate for your needs.

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