Mortgage Calculator
Calculate your monthly mortgage payments based on the home value,
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Your Estimated Monthly Mortgage Payment
Steps to Calculate Your Payments
- Determine the purchase price of the home.
- Calculate the down payment (usually 5-20% of the purchase price in Canada).
- Subtract the down payment from the purchase price to get the mortgage amount.
- Choose a mortgage term (typically 5 years in Canada) and amortization period (usually 25-30 years).
- Determine the interest rate (check current rates from Canadian lenders).
- Use a mortgage calculator to determine the monthly payment.
- Factor in additional costs like property taxes and home insurance.
- Consider the impact of making accelerated bi-weekly payments.
- Review the total interest paid over the life of the mortgage.
- Ensure the monthly payments fit within your budget (typically not exceeding 32% of your gross monthly income for housing costs).
Terms Explained
- Home Value
- The current market value or purchase price of the property.
- Down Payment
- The initial upfront portion of the total home purchase price paid by the buyer.
- Mortgage Amount
- The amount borrowed from a lender to purchase the home (Home Value minus Down Payment).
- Interest Rate
- The percentage charged by the lender for borrowing the money, usually expressed as an annual rate.
- Mortgage Term
- The length of time your mortgage agreement and interest rate are in effect (typically 1-5 years in Canada).
This calculator is for demonstration purposes only. Always consult a professional financial advisor before making personal financial decisions.