Our mortgage payment calculator calculates your monthly payment by completing this simple form. If you are purchasing a home, our payment calculator allows you to test down payment scenarios. We also help you calculate CMHC insurance. To get the best rate available on the market, contact a mortgage broker near you.
Why use a mortgage calculator?
For most, buying a home is the biggest purchase in their life, so why not be extra prepared and informed throughout the whole buying process. Most people will usually focus their attention and energy on the final purchase price or the total mortgage amount. In truth, one of the most important number to look at carefully is your monthly/bi-weekly mortgage payments. Yes, it is also very important to look at what your city taxes and school taxes will be, but your regular mortgage payment is the amount you will have to take away from your pay cheques every month. In other words, it's the amount to look at when you are doing your weekly or monthly budget, so better make sure you can afford your mortgage payments while still being able to enjoy the things you usually do.
How much mortgage can I afford?
A mortgage calculator will allow you to do just that, estimate accurately what your regular mortgage payments will be so that you can add them to your weekly/monthly budget. Our advanced mortgage affordability calculator above will allow you to find out just how much these payments will be but also help you figure out how much you can afford to pay for your new home depending on various factors like the interest rate, amortization period and your down payment.
How to calculate mortgage payment?
Here is the list of information you'll need to use our mortgage payment calculator:
- The purchase price of your home: this is the total amount paid to purchase the home.
- Your down payment: this is the amount you will pay up front for your home.
- The mortgage rate: this is the interest rate you will pay on your mortgage.
- The mortgage amortization period: This is the total number of years over which you will pay back your mortgage.
- The mortgage term: This is the number of years for which your mortgage interest rate will be fixed.
- Your mortgage payment frequency: Either monthly or bi-weekly.
What is mortgage Loan Insurance?
In Canada, if you want to buy a home with a down payment that is less than 20% of the value of your home, you'll need loan insurance. The Loan Insurance protects the lender (the bank) in case you can't make your payments.
How to get approved for a mortgage loan?
Here are just a few tips that could help you get approved for your mortgage loan according to a mortgage expert at one of Canada's premier financial institutions.
1- Prepare your down payment
You want to make sure to keep the money you have prepared for your down payment in one account for at least 90 days before applying for your mortgage loan, without touching it or moving it.
2- Prepare your income documents
If you are self-employed, you want to make sure to have all your relevant income documents with you and available when applying, such as 2 years of NOAs (Notice of Assessment) and T1 generals.
3- Pay down your debt
This one might be very obvious but is a very important one. In our expert's own words, "you definitely want to make sure any outstanding accounts are up to date". In other words, you want to make sure you take care of any possible debt you might have before starting your mortgage approval process.
4- Check your credit cards
It could also be recommended to drop some credit cards that you don't use or reduce the limit on your credit cards if it's not needed.
5- Check your debt ratio
Last but not least, it isn't required but highly recommended to run a TDSR (total debt service ratio) calculation of your own, because financial institutions will. So better be prepared then surprised once they do.