Interest-Only Mortgage Calculator Canada (2025 Updates) – Lower Your Monthly Payments

🏡 Estimate Your Interest-Only Mortgage Payments in Canada

Looking for a lower monthly mortgage payment? Our Interest-Only Mortgage Calculator Canada (2025 Update) helps you estimate your monthly interest-only payments based on your loan amount, interest rate, and term. Compare different scenarios to see how interest-only loans impact your finances.

✅ Calculate monthly payments for interest-only mortgages
✅ Compare interest-only vs. traditional mortgage payments
✅ Plan for future principal payments when the interest-only period ends

Calculate My Payments

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Mortgage Payment Calculator Canada-the Genesis Group

🏆 Interest-Only Mortgage Calculator – The Genesis Group

See how an interest-only mortgage affects your monthly payments and long-term costs.

🔢 What You Can Do with This Calculator

✔ Estimate your monthly mortgage payments for an interest-only loan
✔ Compare interest-only vs. principal-and-interest payments
✔ Adjust loan terms and interest rates to see how payments change
✔ Understand how much principal you’ll owe after the interest-only period

📌 2025 Update: Some Canadian lenders now offer interest-only mortgage options for investment properties & high-net-worth borrowers under specific conditions.
💡 Tip: Click on “Show Additional Settings”, then select “Loan Type” and change it to “Interest-Only” to see how your payments adjust.

Mortgage Size

Default insured mortgage cap is $1.5M. First-time buyers & new builds can have up to 30-year amortizations (from Dec 15, 2024).

$
Current Value: $500,000

Down Payment & Property Type

$
0% 20% 100%
Current Value: $100,000

Payment Frequency

Interest Rate

%
Current Rate: 4.24%
Term length for your chosen rate.

Amortization

5 25 30
From Dec 15, 2024, first-time buyers & new builds can choose up to 30 years.

Home Expenses

Yearly
Monthly
$
$
$

Rental Income

Check if you rent out part of your home.

Yearly
Monthly
Accelerated Payments & Pre-payments
Increase the number of payments/year and choose the % extra you want each time.

Make a lump sum on your mortgage right away.

Extra principal applied once per year.

Advanced Settings

$0

Includes 0% extra payment
  • Monthly Mortgage
    $0.00
  • Home Expenses
    $0.00
  • Other Expenses
    $0.00
  • Rental Income
    $0.00

Mortgage Size: $0

Down Payment: $0

Mortgage Insurance: $0.00

Details

Mortgage Payment: $0.00
Net Mortgage (with Insurance): $0.00
Interest paid over Term: $0.00 (INTEREST SAVING $0)
Balance end of Term: $0.00
Effective Amortization: 0 years (0 years faster)

Powered by the Genesis Group

Comparison: Your Scenario vs. Minimum 5% Down

Your Scenario (Below 5% Down)
Payment ignoring insurance: $0.00

Minimum 5% Down Scenario
Payment with insurance (5% down): $0.00

Compare Two Scenarios

Quickly see how different down payments or rates affect your monthly payment.

Scenario B Result

Monthly Payment: $0.00

Interest Paid Over Term: $0.00

Mortgage Insurance: $0.00

🚀 Why Use This Interest-Only Mortgage Calculator?

🏆 Trusted by Canadian Homebuyers & Investors

✅ Easy & Fast – Enter your details & get instant results
✅ Up-to-Date with 2025 Mortgage Rates & Rules
✅ Personalized Insights – Adjust loan details for a tailored result
✅ Expert Support – Speak to a mortgage broker for custom strategies

🗣️ “This tool helped me see how an interest-only mortgage could lower my payments while I invest elsewhere.” – Verified Investor

⭐⭐⭐⭐⭐ Rated 5 Stars by Homebuyers & Investors in Canada

📌 Award-Winning Mortgage Brokerage | Backed by Certified Financial Experts

Get Personalized Advice – Book a Free Consultation
Mortgage Payment Calculator Canada-The Genesis Group

📖 How to Use the Interest-Only Mortgage Calculator

🔹 Step 1: Enter Your Loan Details

  • Loan amount, interest rate, loan term, and interest-only period

🔹 Step 2: Adjust Your Loan Preferences

  • Compare interest-only vs. principal-and-interest payment schedules

🔹 Step 3: View Your Monthly Payment Breakdown

  • See how much interest you’ll pay & how your payment changes after the interest-only period

🔵 Compare Interest-Only Mortgage Rates

📉 Interest-Only Mortgage Pros & Cons

✅ Pros of Interest-Only Mortgages

✔ Lower monthly payments during the interest-only period
✔ Free up cash for investments, renovations, or savings
✔ Ideal for real estate investors & high-income earners with variable income

❌ Cons of Interest-Only Mortgages

❌ Loan balance remains unchanged during the interest-only term
❌ Higher payments once the principal payments begin
❌ Limited availability—most lenders require strong financials

📌 Important: Interest-only mortgages in Canada are primarily available for investment properties, high-net-worth individuals, and select private lenders.

🔵 Read Our Full Guide: Interest-Only Mortgages in Canada

Mortgage Affordability Calculator Canada-the Genesis Group

💡 Frequently Asked Questions About Interest-Only Mortgages

How does an interest-only mortgage work?

An interest-only mortgage allows you to pay only the interest portion of your loan for a set period (e.g., 5-10 years), reducing your monthly payments. After this period, you start repaying the principal.

Lower monthly payments, better cash flow management, and investment opportunities. However, you must be prepared for higher payments once the principal payments begin.

Interest-only mortgages are typically available to high-net-worth individuals, investors, and business owners with strong financials. Some private lenders and alternative lenders also offer them.

The interest-only period usually lasts 5 to 10 years, after which you must start making principal payments or refinance.

Yes, they can be riskier if you don’t plan for higher payments after the interest-only period ends. These loans are best suited for investors and those with fluctuating incomes.

Yes! Many borrowers refinance before the interest-only period ends to secure a lower rate or extend their repayment period.

📞 Speak to a Mortgage Expert

🚀 Need help securing an interest-only mortgage? Our licensed mortgage brokers can help you explore your options and find the best lender.

📌 Book a FREE consultation today & get expert mortgage advice!

Speak to an Expert

🔗 Trusted Resources

✅ Government of Canada – CMHC Mortgage Rules
✅ Canada Revenue Agency – Home Buying Tax Benefits
✅ Genesis Group’s Comprehensive Guides for Homebuyers and Investors in Canada

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5 Year - Variable

4.45%

This exclusive rate is available for High Ratio Mortgages and applies to both new purchases and some mortgage switches. With a guaranteed rate of Prime -1.00%, you’ll enjoy the freedom to make extra payments or increase your monthly payments by up to 20% per year.

And the best part? This is a full-frills mortgage—no hidden surprises or restrictive clauses like a bona fide sales clause!

Prime Rate @ 5.45%

4.45% - 5.50%

If you don’t qualify for our lowest advertised rate, don’t worry! We have other competitive options tailored to your needs. Factors such as your credit score and home equity will determine your final rate.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

5 Year - Open

4.95%

Enjoy a rate discount starting from Prime -0.50% for your term. This 5-year Adjustable Rate Mortgage (ARM) offers unmatched flexibility: pay it, lock it, break it, or change it—with no restrictions or penalties.

Perfect for insured, insurable, and uninsured new purchases and switches, this option is available for owner-occupied properties only.

Prime Rate @ 5.45%

4.95% - 6.75%

If you don’t qualify for our lowest advertised rate, don’t worry—there are still excellent low-rate options for you! Your final rate depends on factors such as your credit rating and home equity.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

5 Year - Fixed

4.24%

Lock in this competitive rate for High Ratio purchases! Enjoy the flexibility of making up to 20% lump sum payments annually, plus the option to increase your regular payments by up to 20%—perfect for managing your mortgage your way. Secure this rate for up to 120 days, giving you the confidence to plan ahead.

4.24% - 5.69%

Even if you don’t qualify for our lowest advertised rate, we’re here to help with a variety of competitive options designed to meet your needs. The rates above reflect realistic possibilities based on factors such as your credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

4 Year - Fixed

4.59%

Take advantage of this competitive rate available for High Ratio purchases and select Insured transfers! Enjoy the flexibility of making up to 20% lump sum payments annually and increasing your regular payments by up to 20%. This is a full-featured mortgage designed to give you the freedom and flexibility you need. 

4.59% - 6.84%

If you don’t qualify for our lowest advertised rate, don’t worry—we’ve got a variety of low-rate options to fit your needs. The rates shown above reflect realistic scenarios and are influenced by factors like credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

3 Year - Fixed

4.39%

Take advantage of this fantastic rate available exclusively for High Ratio deals! With the flexibility to make up to 15% lump sum payments annually and the option to increase your regular payments by up to 15%, this is a full-featured mortgage that adapts to your needs. Lock in this rate for up to 120 days and plan your homeownership journey with confidence.

4.39% - 5.79%

Don’t worry if you don’t qualify for our lowest advertised rate—we’ve got you covered with a range of low-rate options tailored to fit your unique circumstances. The rates above reflect realistic scenarios based on factors such as credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

2 Year - Fixed

4.84%

Lock in this competitive rate for High Ratio purchases! Enjoy the flexibility of making up to 20% lump sum payments annually, plus the option to increase your regular payments by up to 20%—perfect for managing your mortgage your way. Secure this rate for up to 120 days, giving you the confidence to plan ahead.

4.84% - 6.19%

Even if you don’t qualify for our lowest advertised rate, we’re here to help with a variety of competitive options designed to meet your needs. The rates above reflect realistic possibilities based on factors such as your credit score, home equity, and financial profile.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

1 Year - Fixed

5.49%

Unlock this exclusive low rate for High Ratio purchases and Switches. Enjoy up to 20% lump sum payments annually and the flexibility to increase your payments by 20%! Plus, lock in this fully-loaded mortgage rate for up to 120 days—no hidden restrictions, just exceptional value.

5.49% - 6.99%

Even if you don’t qualify for our lowest rate, we’ve got plenty of low-rate options tailored to fit your unique situation. Your final rate depends on factors like your home equity and credit score, but with Genesis, you’ll always get the best-possible rate for your needs.

Note: Additional premiums may apply for rental properties, extended amortizations, non-standard properties, or alternative lending solutions.

Secure Your Best Rate Today!

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