Mortgage Payment

A mortgage payment is the recurring scheduled amount paid by the borrower to the lender under a mortgage contract. Each payment is allocated between interest (the cost of borrowing on the outstanding balance) and principal (reduction of the amount owed). Property tax instalments collected by the lender and default-insurance premiums where applicable may be added to the scheduled mortgage payment. Verify your specific mortgage terms with your lender and a BC lawyer or notary.

Federally regulated lenders in Canada typically offer monthly, semi-monthly, bi-weekly, weekly, accelerated bi-weekly, and accelerated weekly payment frequencies. The Financial Consumer Agency of Canada (FCAC) oversees federally regulated financial institutions. Confirm available payment options and their impact on total interest paid with your lender, as offerings may vary.

Each scheduled mortgage payment is allocated between interest and principal. Earlier in the amortization period, a larger share of each payment is interest; the principal share increases over time as the outstanding balance is paid down. This allocation is determined by the amortization schedule in your mortgage contract. Verify your specific amortization schedule and payment allocation with your lender or mortgage broker.

Yes, property tax instalments (sometimes called the 'tax portion') may be collected by the lender and added to the scheduled mortgage payment. The lender then remits the property taxes to the relevant municipality on the borrower's behalf. Verify whether your lender offers or requires property tax collection as part of your mortgage payment, and confirm the amount with your lender and municipality.

Default-insurance premiums (commonly mortgage loan insurance from Canada Mortgage and Housing Corporation (CMHC) or private insurers) are required for high-ratio mortgages (typically those with less than 20% (as of 2026-07-27 — verify current) down payment) on properties under $1,000,000 (as of 2026-07-27 — verify current) purchase price. These premiums may be added to the mortgage principal or included in the scheduled mortgage payment. Verify current thresholds, premium rates, and payment structures with your lender, mortgage broker, or CMHC directly.

BC does not have a single statute dictating the internal structure of mortgage payments; mortgage contracts are generally governed by contract law and federal regulation of financial institutions. The British Columbia Financial Services Authority (BCFSA) regulates mortgage brokers under the Mortgage Brokers Act and related rules, but payment structure is typically a matter of contract between borrower and lender. Verify your rights and obligations under your specific mortgage contract with a BC lawyer or notary.

A standard bi-weekly payment is the monthly payment divided by two, paid every two weeks (26 payments per year, equivalent to 13 monthly payments annually). An accelerated bi-weekly payment is calculated by dividing the monthly payment in half and paying that amount every two weeks, resulting in one extra monthly payment per year and faster principal repayment. Verify the total interest savings and payment amounts for each option with your lender or mortgage broker before choosing.

No, mortgage payments do not typically include strata fees (common expenses for strata properties governed by the Strata Property Act, SBC 1998, c. 43). Strata fees are paid separately by the strata lot owner directly to the strata corporation. Verify your total monthly housing costs, including mortgage payment, strata fees, property taxes, and utilities, with your lender, strata corporation, and financial advisor.

The ability to change your mortgage payment frequency depends on the terms of your mortgage contract and your lender's policies. Many lenders allow changes to payment frequency without penalty, but some mortgage contracts may restrict changes or impose conditions. Verify your specific mortgage contract terms and contact your lender directly to request a change and confirm any requirements or fees.

No, mortgage payments (both interest and principal portions) are not subject to GST (a federal tax under the Excise Tax Act) or BC's Provincial Sales Tax. Interest on residential mortgage loans is an exempt financial service under federal GST legislation. Verify the tax treatment of any other fees or charges related to your mortgage (such as legal fees, appraisal fees, or broker fees) with a licensed tax professional or BC lawyer.