Calgary Mortgage Prepayment Calculator
Quick Answer
Making a $10,000 lump sum payment on a $400,000 mortgage at 4.99% saves approximately $16,000 in interest. Adding $200/month extra saves another $30,000+ and shortens your amortization by 3-4 years. Most Canadian lenders allow 10-20% annual prepayment.
Calculator
Total Interest Saved
$55,592
💡 What This Means for You
A $10,000 lump sum saves $7,431 in interest. Adding $200/month to your payments saves another $48,161 and pays off your mortgage 3.5 years early. Most lenders allow 10–20% annual prepayment.
How It Works
Prepayment privileges let you pay down your mortgage faster. Most Canadian lenders allow 10–20% of the original balance as a lump sum annually, plus the ability to increase regular payments by 10–20%.
Every extra dollar goes directly to principal, reducing the balance that interest is charged on. The earlier you make prepayments, the more you save.
Real Calgary Scenarios
Small Boost
$5,000 lump + $100/mo
$3,716
interest saved (lump only)
Moderate Push
$15,000 lump + $300/mo
$11,147
interest saved (lump only)
Aggressive Paydown
$30,000 lump + $500/mo
$22,293
interest saved (lump only)
Frequently Asked Questions
How much can I prepay without penalty?
Most Canadian lenders allow 10-20% of the original mortgage amount as annual lump sum prepayments. Check your mortgage agreement for your specific prepayment privileges.
When is the best time to make a lump sum payment?
As early as possible. Interest savings are greatest when you reduce principal early in the amortization, when a larger portion of each payment goes to interest.
Should I prepay or invest?
If your mortgage rate is higher than your expected after-tax investment return, prepay. If you can earn more investing (e.g., in a TFSA or RRSP), investing may be better. The guaranteed 'return' of mortgage prepayment is your mortgage rate.
Want exact numbers based on your prepayment calculator results?
Speak with a Calgary mortgage expert — no obligation.
Get My Personalized Mortgage Plan