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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