Calculating mortgage payments in Canada involves understanding the components: the principal amount, interest rate, and loan term. The standard formula is: M = P[r(1+r)^n]/[(1+r)^n – 1] Where: – M is your monthly payment – P is the principal loan amount – r is your monthly interest rate (annual rate divided by 12) – n is your number of payments (or the loan’s term in months) This formula applies to fixed-rate mortgages. For adjustable-rate mortgages, calculations can vary due to the changing interest rates. It’s crucial to make timely payments as set by your lender to maintain a healthy credit score. Many financial institutions offer online calculators to help you estimate your monthly payments. Understanding this calculation helps you manage your mortgage and plan your finances effectively.