Ratehub Mortgage Calculator in Canada 🇨🇦

What is the Ratehub mortgage calculator?

Ratehub is an online comparison platform for mortgage rates, credit cards, deposits, and insurance. It was founded to help its users make smart financial decisions with the help of a professional team of advisors and a set of information and analysis tools for the loan products offered by various lenders. Ratehub does not promote any financial solutions but provides calculators to clarify market offers for those who want to buy their first home, plan a renovation or invest in real estate but do not have sufficient funds (or do not want to deplete their savings) to make such a significant purchase.

Ratehub has developed a series of calculators available 24/7 for personal analysis. They help you identify the advantages and disadvantages of all credit products and the consequences of your financial decisions and see alternatives. Online calculators provide accurate results based on the data you enter. Still, they cannot analyze all the details of your financial situation and therefore cannot replace the advice of a financial expert or a mortgage specialist.

On the other hand, calculators help bring more transparency to the financial market for ordinary customers who want to use their income wisely and enjoy a high standard of living.

Ratehub mortgage calculators

In total, Ratehub offers five loan calculators that are related to mortgage financing and apply to the entire life cycle of your perspective loan. Below we briefly describe what the calculators can do and how they can help you make decisions.

• With the mortgage payment calculator, you can see how much your mortgage would cost you each month (or each week, depending on the repayment frequency you choose). As a result, it helps to save money and make better financial decisions about mortgage rates, affordable purchase prices, mortgage payments, etc. In addition, the Ratehub mortgage payment calculator not only makes clear how much you would pay monthly for your mortgage (or in another freely selectable frequency), but it also shows essential things like:

• Down payment;

• Amount of down payment as a percentage of the property price;

• Amortization of the mortgage;

• Insurance costs (if any);

• Existing constant monthly expenses;

• The remaining balance of the mortgage at the end of the term;

• Cash that is needed to close the deal and pay for the accompanying actions.

• The mortgage affordability calculator will help you determine which mortgage is bearable for you based on your current financial situation and what amount you can repay without hurting your credit score and straining your household budget. In other words, it helps you avoid unbearable monthly payments. The affordability calculator takes the information about your household income and converts it into a realistic mortgage amount by going through the items of your expenses in the budget.

• The mortgage refinance calculator shows the financial consequences of refinancing the existing mortgage and getting better terms with another lender. This tool may seem to be only about financing from another lender, but there is more to it. It shows possible penalties for canceling your mortgage (depending on the lender) and possible interest rates on refinanced loans. It gives you a scenario to think about and discuss with your financial advisor.

• The mortgage penalty calculator based on your current mortgage shows how much you would have to pay if you decide to cancel the mortgage before the end of the term provided for in the loan agreement. This instrument shows you real scenarios in a situation where you will have to pay the penalty to your current lender if you decide to switch to another lender with better terms and significant interest savings. If you see that you will end up paying much less than you did on the first loan, accepting the additional penalties included in your loan terms is more accessible.

• The Maximum Equity Through Refinance calculator shows your hidden reserve within your partially repaid mortgage. You can use it to cover significant expenses and still enjoy financial stability. This tool shows how much money you can access by making the most of your property value.

In addition to mortgage calculators, Ratehub offers such automated tools for calculations as:

• The CMHC calculator helps you determine the best price for mortgage default insurance. If you have to buy such insurance anyway under your loan terms and percentage of your downpayment, it is better to use the best offer.

• The Real Estate Transfer Tax Calculator will show you the approximate amount of real estate tax you must pay when buying a property outside Alberta and Saskatchewan.

• The debt consolidation calculator shows how much you could save if you transfer all your expensive loans to another borrower at a lower interest rate, assuming a new loan.

These calculators consider multiple factors like mortgage rate, purchase price, land transfer tax, land transfer tax, CMHC insurance, and mortgage payments. The tools offered by Ratehub help you decide on the minimum down payment and amortization period that work best for you. Ratehub claims that 1,200,000 Canadians a month save money and make better financial decisions using the tools elaborated by this platform.

Why do you need the Ratehub mortgage calculators?

Ratehub loan calculators are necessary if you are planning to buy a home or if you enjoy financial stability and want to choose the best option available to you in your current financial circumstances.

There are many things to consider when making such significant purchases like a property, such as:

• What location do you prefer and why?

• Can you afford a house in this location, or would it currently be a condo?

• What taxes and how much taxes you will have to pay on your property depending on the location;

• Which option would be most financially advantageous to you in terms of the amount of the down payment?

• What type of interest rate is best for you;

• What is preferable: an extended amortization of a short-term mortgage with further extension at a better interest rate?

• What interest rates are offered in the mortgage loan market?

• How much do you have to pay for your mortgage and other ongoing costs?

• Are you entitled to some compensation if this is your first home?

• How much you will have to pay for insurance and where you can get the best possible quotes without calling insurance agencies multiple times;

• What financial consequences you should expect if you decide to cancel your mortgage for refinancing;

• Is there a way to get money with your existing mortgage through a new mortgage?

These and many other questions can be answered before you schedule an appointment with a broker, mortgage specialist, or financial advisor. By entering the exact numbers available, you can get a quick overview of your economic horizon and be better prepared to decide.

Besides, mortgage calculators are created for informational purposes and do not mean any compromise with lending institutions.

How to use the Ratehub calculator

Mortgage calculators require you to do some preparation before you can enjoy a one-click calculation.

First of all, you need to determine the purpose of your loan and be clear about your priorities. Then, this can be a quick repayment, whether you pay high monthly installments but within a few years, or lower installments and then a faster repayment of the original loan by refinancing at a better interest rate.

You know best for yourself whether you are inclined to make risky choices, such as a lottery with floating interest rates that may be low at the moment but grow high over the life of your loan due to certain macroeconomic factors.

Another thing is that you need to gather initial information, such as the average or exact cost of the desired property and its location because you will be asked to give provincial details as well.

So, let us give a brief overview of Ratehub mortgage calculators and how to work with them step by step.

• Start working with the mortgage payment calculator.

• You need to enter the price of the property (it can be specific or preliminary);

• You can either choose the available options for down payments or enter your percentage;

• The cost of mortgage insurance is automatically calculated based on the data the calculator has;

• The payback period for your mortgage, which can vary from 5 to 30 years, or your option;

• The mortgage rate and mortgage type must be selected from the drop-down list;

• Tax information is automatically calculated based on the property location information you enter;

• The total amount needed for the mortgage includes approximate legal fees, PST insurance, land transfer tax and down payment, and title insurance. These lines are calculated automatically and, of course, only give a general idea of how much money you will need to set aside;

• Other cash amounts, such as home inspection and appraisal fees, are approximated and automatically calculated;

• Monthly expenses can be changed in most cases to adjust the final total. The exception is the monthly mortgage payment that is based on your original data. Home and property taxes, cable, and internet can be entered situationally, and then the calculation is highly customized;

The interest rate risk section is automatically calculated and shows you the historical trend of interest rate fluctuations, including repayments over the life of the loan.

• To get an answer to the question of how much mortgage you can afford, the mortgage amortization calculator requires the following information:

• information about your household income, including bonuses and income other than salary (gross);

• the annual income of the co-applicant;

• the expected down payment, noting that the minimum down payment in Canada is 5% of the property value, and if it is less than 20%, you will need to purchase special insurance (CMHC insurance);

• the cost of living associated with the purchase of your future home (monthly condo fees, annual property tax, monthly heating costs);

This calculator allows you to leave this section blank if you do not know the costs. In such a case, average values will be used, and you will still get the results of your calculation; current debt payments (credit card loan, car loan, etc., or leave this section blank if you do not use other credit products; therefore, these expenses are irrelevant to your budget).

As a result, you will receive information about the mortgage amount you can bear. Then, you can negotiate with the owner about the property price or choose another option that suits your current financial capabilities.

• The mortgage refinance calculator prompts you for:

• the value of the property;

• the current mortgage balance.

Then you have to choose if you want a better rate or access equity. The lower rate option requires you to key in the following:

• Now, the calculator invites you to select the interest rate for the new loan and the lender from the lost (or custom) interest rate;

• The current mortgage payment and its amount are also requested.

• Finally, you will be given the amount of the approximate penalty your lender will charge you, as well as the future monthly payment (or other frequency you choose), and you will get a clue how much you will save if you convert the mortgage option into a new one.

1. The mortgage penalty calculator shows you the price of canceling the previous mortgage that you must pay before taking out a new mortgage for your property.
   You can determine the approximate mortgage redemption fee based on the outstanding mortgage amount, the current mortgage rate, and the three-month interest rate. Of course, you can get exact figures from your lender. Still, it's always relevant to know in advance the consequences of your financial decisions and how they would affect your household's income distribution.

2. The Maximum Equity Through Refinance calculator requires you to enter your home's value and the mortgage's outstanding amount. It will show you what cash you can expect as the difference after repaying the mortgage and the mortgage renewal amount.

Mortgage calculators are easy to use and allow you to consider land transfer taxes before entering into the deal, forecast mortgage payments before signing a loan agreement, and compare the price with your financial abilities. One more feature of calculators is that you can change the maximum amortization period one or more times and find options for mortgage insurance. So if you buy a newly built property, you can expect savings opportunities if you are eligible. For more details, check with your mortgage provider.