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Mortgage Calculator
Your monthly payment, the total interest you'll pay, and how your balance shrinks over time.
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Already Own? HELOC Check & the "Velocity Banking" Payoff Method
Enter your home's value and remaining mortgage. If your loan-to-value fits typical HELOC limits, we'll show your estimated HELOC room, then compare three ways to pay off the same mortgage: as-is, simple extra payments, and the HELOC "velocity banking" method.
How "velocity banking" works, step by step (and the honest catch)
The method: (1) open a HELOC against your equity; (2) draw a lump-sum "chunk" and pay it straight onto your mortgage principal; (3) run your monthly surplus through the HELOC until the chunk is repaid; (4) repeat until the mortgage is gone. Because the chunk removes principal immediately, the mortgage stops charging interest on it right away.
The honest catch: almost all of the acceleration comes from your monthly surplus attacking debt, not from the HELOC. Sending that same surplus directly to the mortgage as a plain extra payment gets nearly identical results with no HELOC interest, no variable-rate risk, and nothing new secured against your home. When the HELOC rate is higher than your mortgage rate (it usually is), chunking typically costs slightly more than simple extra payments. The comparison table above shows the difference for your exact numbers instead of asking you to take anyone's word for it.
Not to be confused with Canada's Smith Manoeuvre, which uses a readvanceable HELOC to convert mortgage debt into tax-deductible investment debt; that is a different strategy with its own risks and is worth professional advice.
About this calculator
This mortgage calculator estimates your principal-and-interest payment from the home price, down payment, interest rate, and amortization period, then adds property tax, home insurance, condo fees, and mortgage-default insurance (PMI in the US, CMHC in Canada) to show your total monthly housing cost. The year-by-year schedule shows how much of each year's payments go to interest versus paying down the balance: early years are interest-heavy, and the split gradually flips.
Mortgage FAQ
Why does the same rate give a slightly different payment in Canada vs the US?
Canadian fixed-rate mortgages compound semi-annually by law (the Interest Act), while US mortgages compound monthly. At the same quoted rate, the Canadian effective monthly rate is slightly lower, so the payment is slightly smaller. The country toggle handles this automatically.
What are PMI and CMHC insurance?
Both protect the lender when your down payment is under 20%. In the US, private mortgage insurance (PMI) is typically charged as an annual percentage of the loan and can usually be removed once you reach about 20% equity. In Canada, the CMHC premium (roughly 2.8%–4.0% of the loan, depending on your down payment) is normally added to the mortgage principal. Exact rates vary by insurer and situation.
How much does accelerated bi-weekly really save?
Paying half your monthly payment every two weeks means 26 half-payments a year, the equivalent of 13 monthly payments instead of 12. That one extra payment per year typically shortens a 25–30 year mortgage by several years. Toggle it above to see the exact effect for your numbers.
What is "velocity banking"?
A mortgage-payoff method: draw a lump-sum chunk from a HELOC, pay it onto your mortgage principal, then route your monthly surplus through the HELOC until the chunk is repaid, and repeat. It genuinely accelerates payoff, but mostly because your surplus cash is attacking debt; see the comparison tool above for whether it beats simply sending that surplus to the mortgage directly.
Does velocity banking beat plain extra payments?
Usually not by much, and often it loses slightly. When the HELOC rate is higher than your mortgage rate, every dollar parked on the HELOC costs more than it saves on the mortgage. It can edge ahead only while the HELOC rate is below your mortgage rate, and HELOC rates float. Run your own numbers above rather than trusting a video.
How much HELOC can I get?
In Canada, combined mortgage + HELOC is typically capped at 80% of your home's value, with the revolving portion capped at 65%. In the US, lenders commonly allow a combined 80–85%. Your remaining room is the cap times your home value, minus the mortgage balance; the tool above estimates it for you.
What costs does this estimate leave out?
Closing costs, land-transfer taxes, utilities, and maintenance aren't included, and the rate is assumed fixed for the whole amortization. Canadian mortgages actually renew every term (often 1–5 years) at whatever rates prevail then, so treat long-horizon totals as estimates.