Mortgage Calculator (Original Source RateHub.ca)
How to Calculate Your Mortgage
Numerous factors go into estimating how much your mortgage payments will be. The most important numbers are the total mortgage amount, which is the price of the home, minus the down payment, plus mortgage insurance if applicable; the amortization period (the number of years the mortgage payments will be spread across), and the mortgage rate (the rate of interest paid on the mortgage).
To use the RateHub.ca calculator, enter the purchase price, and select your amortization period and mortgage rate. Then you can see how your payment will be affected by the size of your down payment and frequency of payments. The calculator also shows you what the land transfer tax will be, and approximately how much money you will need for closing costs.
If you’re renewing or refinancing and know the total amount of the mortgage, use the “Renewal or Refinance” tab to estimate mortgage payments without accounting for a down payment.
HOW TO LOWER MORTGAGE PAYMENTS
Here are a few ways to lower your mortgage: make a bigger down payment (when you do you reduce the overall purchase price of the home), extend the amortization period, or choose a lower mortgage rate.
WHAT IS AN AMMORTIZATION SCHEDULE?
An amortization schedule shows your monthly payments over time and also indicates the portion of each payment paying down your principal vs. the interest.
The maximum amortization in Canada is 25 years on down payments less than 20%. Though your amortization may be 25 years, your term will be much shorter. With the most common term in Canada being 5 years, your amortization will be up for renewal before your mortgage is paid off, which is why our amortization schedule shows you the balance of your mortgage at the end of your term.
WHAT IS CMHC INSURANCE?
CMHC insurance is mandatory in Canada for down payments between 5% and 19.99%, which are known as high-ratio mortgages. It is calculated as a percentage applied to your total mortgage amount.