Monthly Mortgage Payment Multiplier
Here is a handy little table that I found in the book “Personal Finance for Canadians for Dummies” for calculating monthly mortgage payments using a simple multiplier.
| Interest Rate | 15-Year Amortization | 25-Year Amortization |
| 5.0% | 7.88 | 5.82 |
| 5.5% | 8.14 | 6.1 |
| 6.0% | 8.4 | 6.4 |
| 6.5% | 8.66 | 6.7 |
| 7.0% | 8.93 | 7.00 |
| 7.5% | 9.21 | 7.32 |
| 8.0% | 9.48 | 7.63 |
| 8.5% | 9.76 | 7.95 |
| 9.0% | 10.05 | 8.27 |
| 9.5% | 10.33 | 8.61 |
| 10.0% | 10.62 | 8.94 |
| 10.5% | 10.92 | 9.29 |
| 11.0% | 11.21 | 9.62 |
| 11.5% | 11.51 | 9.97 |
| 12.0% | 11.81 | 10.32 |
How does the table work? You find the current going interest rate, then multiply your (mortgage balance/1000) by the multiplier indicated.
For example, at todays 5 year fixed rates of around 5%, a 25-year $200k mortgage would mean a monthly mortgage payment of approximately $200k/1000 x 5.82 = $1164/month. This is the mortgage payment only and does NOT include property/water tax, insurance and heat/light.
By looking at the chart, another useful rule of thumb is that for every 0.5% that your interest rate goes up or down, you’re going to increase/decrease your monthly payment by around $30/month.
Or, you can simply use an online calculator like the one at Dinky Town.
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