Variable rate mortgage calculator
See your payment at higher and lower rates, and the trigger rate at which a fixed payment stops paying down your mortgage.
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Two kinds of variable mortgage
- Adjustable payment: your payment changes whenever your rate does, so the amortization stays on track.
- Fixed payment: your payment stays the same. When rates rise, less of it goes to principal and your amortization gets longer.
What the trigger rate means
On a fixed-payment mortgage, the trigger rate is the rate at which the whole payment goes to interest. Above it, your payment no longer covers the interest and the unpaid amount may be added to your balance.
Trigger rate ≈ payment × 12 ÷ balance
Your lender’s figure can differ slightly. See our guide to variable rates and the trigger rate for what happens next.
Frequently asked questions
Why doesn’t this match the fixed-rate calculator?
Fixed-rate mortgages in Canada compound semi-annually. Variable-rate mortgages commonly compound monthly, so the same rate gives a slightly higher payment. Check your contract.
What happens if I reach the trigger rate?
Your agreement must state your trigger rate, and options usually include raising your payment or making a lump-sum payment. See your contract for the terms.
Does the trigger rate change over time?
Yes. As your balance falls, the same payment covers interest at a higher rate, so your trigger rate rises.
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