The Mortgage
Race
Two mortgages. Two rates. 25 years animated in real time.
Watch the interest gap grow and see exactly how much a lower rate saves.
CMHC +$13,950
Total interest difference
That is the difference in total interest paid between Mortgage A (5.44%) and Mortgage B (4.89%) over 25 years on a $463,950 mortgage.
Mortgage A
$2,816/monthly
Total interest: $380,768
Mortgage B
$2,669/monthly
Total interest: $336,863
Canadian semi-annual compounding · CMHC insured. Adjust inputs above, then hit Play.
How the math works
Canadian semi-annual compounding
The Canadian Interest Act requires mortgages to compound semi-annually, not monthly like US mortgages. The correct effective monthly rate is (1 + r/2)^(1/6) minus 1.
Rate renewals
Canadian mortgages typically renew every 3 to 5 years. Use the renewal fields above each mortgage to simulate what happens when a fixed-rate term ends and you refinance at a different rate.
Why small differences add up
On a $500K mortgage, a 0.55% rate gap means roughly $146 less per month and over $43,000 less in total interest over 25 years. Compounding amplifies every fraction of a percent.
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