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Mortgage calculator

Mortgage calculator online in Canada in 2022. How to figure out a mortgage loan yourself?

Your city
Bank
TD Bank TD Bank
TD Bank TD Bank
Royal Bank of Canada Royal Bank of Canada
Scotiabank Scotiabank
Bank of Montreal Bank of Montreal
Canadian Imperial Bank Of Commerce (CIBC) Canadian Imperial Bank Of Commerce (CIBC)
HSBC HSBC
Tangerine Bank Tangerine Bank
ATB Financial ATB Financial
Coast Capital Savings Coast Capital Savings
Calculation according to the real estate value
Calculation according to the loan amount
Calculation of a mortgage loan at any bank
Loan amount
i

Specify the desired loan amount

CAD
CAD
USD
50000 $
1000000 $
Mortgage calculator Mortgage calculator Mortgage calculator Mortgage calculator Mortgage calculator
Loan amount
i

Loan amount

CAD
CAD
USD
50000 $
1000000 $
Down payment
i

Specify the percentage of the down payment

%
$
5
90
Your loan amount
$
Loan term
i

Specify the loan term for the calculation

years
months
1
30
Interest rate
i

Choose the interest rate on the loan

1 %
30 %
Type of payments
i

Specify the type of payment for calculating

Fill out an application for a mortgage!
Fill out an application for a mortgage!

Take advantage of our mortgage selection system with a free credit rating check!

What is a mortgage calculator?

A mortgage calculator is a special tool designed to help borrowers calculate the cost of a mortgage loan and mortgage payments and analyze loan alternatives.

The shortcoming of most mortgage calculators is that they do not allow you to include your fixed costs in addition to the monthly mortgage payment. Such factors may be a burden and affect your ability to service the loan: utilities like gas, electricity, internet, gas for your car, etc. These factors may seem to have nothing to do with the mortgage, purchase price, and monthly mortgage payments, but they play a significant role in the long run.

The affordability of a mortgage loan depends on your monthly income and its stability, amortization period, purchase price, mortgage payment amount, mortgage principal, payment frequency, mortgage default insurance, and the expenses that constantly fall off your financial pie. Some costs that are not constant can be reduced, but others must be accounted for so that you always have enough cash reserves to cover them.

With a mortgage calculator, you can quickly calculate a possible mortgage amount and prepare before you go to the lender and apply for a mortgage loan. It increases your chances of paying off your mortgage successfully. Some calculators have an introductory section and an additional optional section where you can enter your credit score, monthly property tax amount, monthly payment for homeowner's insurance, mortgage insurance, etc. The more details a mortgage calculator takes into account, the more accurate results you will get. Some calculators give you an option to display the results in a graph with a percentage breakdown of the cost of the loan. To be precise with data, you can check some figures with the Canada life assurance company.

Why do you need a mortgage calculator?

A mortgage home must be not only beautiful but also affordable for you because until the mortgage amount is fully repaid, this property is not entirely yours. You cannot dispose of it freely, and if you get into trouble and can no longer make your monthly mortgage payment, it will eventually be repossessed.

The mortgage payment calculator is designed for your convenience. You do not have to use formulas and calculate at your leisure. Instead, it is all done automatically because the calculator knows the formulas.

A mortgage payment calculator can help you check what amount would be added to your permanent monthly expenses and see if the amount is acceptable for you. Thus, you can determine the appropriate loan term because shorter mortgage loans have lower interest rates but higher monthly payments, which could stress your budget.

On the other hand, long mortgage loans have lower monthly mortgage payments with the same mortgage principal, but it is a significant overpayment in the long run. Another issue a mortgage payment calculator can help you understand is the amount of your down payment. You can quickly calculate different options and see what works best for you. For example, sometimes, you decide to make a smaller down payment and use some of your savings for investments. This is a viable option if you know there's a good chance you will not overpay for additional mortgage insurance because of the smaller down payment.

Suppose you are considering different locations, such as rural or urban. In that case, you will need to evaluate which option is better from a financial perspective, property taxes, and what mortgage amount works best for you. Even before you pay off your mortgage, it is better to live in a home that you like and can afford at the same time.

How does a mortgage calculator work?

A mortgage calculator converts your input data into the ability to estimate mortgage payments, mortgage terms, and monthly housing costs. It allows you to control your finances and not overestimate your current possibilities even before contacting a mortgage expert.

A mortgage calculator can convert your inputs into monthly payments using a specific formula. A calculator will do the complicated calculations and give you an idea of interest payments and extra monthly payments allowing you to save money.

To estimate how much you can pay monthly for your mortgage and make the right financial decision, you need to choose the right calculator. Otherwise, you may be "surprised" later that your monthly expenses for a new home are higher than you could have expected and very much different from the calculator results. Make sure the calculation includes property taxes, homeowner's insurance, insurance for critical illness (ensure you get quotes for your area, it does not take much time), utilities, and condo fees; such additional payments are significant. Including other costs is also relevant because your first month comprises much more than just interest and principal. The lender's fee, third-parties closing costs for residential properties, and HOA fees might be high enough that you should include them in your calculation.

Factors that determine your mortgage interest rate

The mortgage interest rate is essential in deciding which lender to apply for a loan. It depends on several factors that are internal (dependent on you) and external (market and economic conditions).

Let us start with the internal aspects:

The credit score is not only your matter if you want to take out a loan because it says something about your creditworthiness. For example, the credit score is influenced by the borrower's payment history, the amount of credit used, the type of credit, the number of recent credit applications, etc.

Several factors influence the market:

How to calculate mortgage payments

As always, you have several options and can decide which one is better for you. For example, if you are good at math, you can try arithmetic. But you have to be prepared that even a single calculation error can lead to an utterly misleading result.

The second option is to use a calculator to do the calculations for you. Alternatively, both methods can be combined. For example, you can manually calculate and then use the mortgage calculator to check yourself. But this verification may not work 100% because you cannot see the formula the online calculator uses behind its handy interface.

Manually

First, you can do the calculation manually. You need to solve the equation with many factors and see how the factors affect your borrowing costs. For example, you can use the following equation:

M=P[i(1+i)^n]/[(1+ i)^n-1]

Anyway, you will need a calculator to calculate the exponents and do the simple math inside the brackets.

It should be mentioned that your actual mortgage payment may involve a much more complicated calculation since a mortgage usually involves more variables:

You can ask the lender for the full list of influencing factors and get them by carefully reading the loan product description.

Using a calculator

If you do not feel like calculating long equations to figure out your monthly payment and get your preliminary payment schedule, you can always use a free online tool called a mortgage calculator.

Important! It is designed to make life easier and reduce manual work and human errors. It includes the necessary formulas, but you must still enter the numbers accurately. If you make a mistake while entering the data, you will not get the correct result.

There are numerous free loan calculators on the internet. If you want to use an independent loan calculator that is not on your lender's website, it may be pretty simple and not consider all the necessary factors. There may not be fields to enter all the data you need for your mortgage loan. Therefore, carefully check which fields are available. If you use the mortgage calculator on the lender's website, you are much more likely to get a more accurate result.

Note: Even good loan calculators, including the one on the lender's website, will always state that the results are approximate and that the exact figures you will receive from the lender and the correct repayment schedule are part of your loan agreement.

How to compare loans using a mortgage calculator

It depends on the calculator you use. Some allow you to do one calculation after another. Other calculators are advanced enough to do some calculations to illustrate the cost comparison. These may be different mortgage products from the same lender or offers from different lenders.

Mortgages are a multi-factorial affair; even with a simple calculator, you can play around with loan amount, term, down payment amount, etc.

If you get the data on different mortgage options, you can make a spreadsheet and see what is affordable for you and does not overwhelm you because a mortgage is a marathon with high costs. The mistake of taking out an unaffordable loan can leave you without a home.

To make a good decision, consider several options and lenders and choose the one that is good for you.

Who offers mortgages in Canada?

Mortgage loans have a high principal value and are made by reputable lenders in the credit market. A mortgage lender is a financial institution or even an individual who can finance the purchase of a home.

In Canada, various banks offer mortgage loans, from large to small banks, private lenders, credit unions, and even alternative lenders.

When choosing a lender, it is up to you to find the best option among the alternatives offered with favorable interest rates and credit terms. Keep in mind that your loan terms depend in part on you: your credit history, your down payment, etc.

Is it easy to get a mortgage in Canada?

Large banks have the most stringent mortgage lending requirements because they aim to work with low-risk, low-default customers to minimize foreclosure instances.

To protect customers, there is a federal regulation for mortgage lending. To be approved, you must have a good credit score, a good employment history, and stable, sufficient income to service the loan, and you may have to pass a mortgage stress test.

Even though A-lenders' (known as 'prime' mortgage lenders) terms are strict, you may be able to get more favorable interest rates compared to smaller or alternative lenders.

If the A lender's criteria are too strict and you do not qualify, you can also explore B lenders' options where the requirements are less stringent. Their legal requirements are also not as severe. B lenders are quasi-regulated lenders, not directly regulated federally but indirectly follow regulations.

Alternative lenders could be a solution if neither the A nor B lender requirements are compatible with your profile.

Private lenders offer their lending criteria and lending terms. For example, it may be your employer willing to support you to stay in the province with your family, at least during the repayment of the loan, and the loan terms could be favorable as long as you work there. However, it may also be your family member, friend, or someone else.

What is the monthly payment on a 500k mortgage?

It depends on many factors, such as your lender, the interest rate, the amount of your down payment, the price of the property, whether it's your first home, or whether it's a mortgage loan to renovate an existing property. Only by knowing your data can you get more or less accurate results, depending on the calculator. The best way to test your data is to use the online calculator on the potential lender's website. For example, with an interest rate of 5% and a down payment of 20%, your monthly payment will be $1,861.14.

What are the essential factors that affect the cost of a mortgage?

Many factors determine the cost of your mortgage. They are mainly divided into external and internal factors. External factors are out of your control, such as the state of the economy, the bond market, the inflation rate, the unemployment rate, regulatory policies, and the type of lender you have (A-type, B-type, alternative, or private lender).

The internal factors depend on you, your credit score, repayment history, loan application history, risk profile, stress test results, stable employment history, home location, whether this is your first property or first purchase or renovation of an existing property, down payment, mortgage insurance, and homeowner's insurance, etc.