Realtor mortgage calculator in Canada 🇨🇦

What is the Realtor mortgage calculator?

Canadian Real Estate Association (CREA) made available a mortgage calculator created by real estate professionals. It cannot replace a professional financial advisor but can show you more than just a mortgage amount scenario.

Such a crucial decision as signing a mortgage contract in Canada requires a lot of information and a critical evaluation of your financial capabilities. If you do not feel like calculating your payments using formulas and equations, you can use the mortgage calculator offered by the Canadian Real Estate Association. It will help you find answers to the most common questions, such as those listed below:

• How much would my monthly mortgage payment be?

• How much can I afford to pay for my home;

• What would be the amount of interest paid knowing current interest rates;

• Which amortization schedule works best for me;

• How can I break down the monthly payments I already have as an ongoing expense?

• What maximum amortization period should I choose so that my monthly payments are balanced and affordable?

• How much house can we afford?

• Are high ratio mortgages suitable for me?

• What would be the minimum down payment knowing the approximate purchase price of my dream home?

• What is the principal amount for the loan I want?

• What mortgage choice I should make;

• What is the preliminary mortgage amount?

• Etc.

If you are taking out a mortgage or considering renovations or refinancing existing mortgage loans, the Canadian Real Estate Association mortgage calculator is an excellent tool to see your prospects. This organization does not operate as a lender. Still, it provides information to help customers of banks, other lenders, and people who are members of the Canadian real estate association to be informed.

It pays to analyze significant investments in detail without being pressured by marketing offers and the agent’s communication skills. Mortgage calculators make it possible to find a better price for a house or negotiate mutually beneficial terms for the seller and you as a buyer.

Reputable lenders not only have a range of mortgage loans with different terms, interest rates, etc., but they are interested in giving loans to borrowers who can service them, so be responsive as a lender, and it would save you from having credit score problems.

Check what regular payments you can afford and test different payment frequencies before signing a mortgage loan agreement. It is similarly calculated in less than one minute.

Realtor mortgage calculators

The mortgage calculator offered by the Canadian Real Estate Association is a multi-step tool that does more than just review the potential cost of your mortgage loan and monthly payments. It includes the following sections:

• mortgage calculator;

• cash needs calculator based on your mortgage;

• calculator for potential monthly expenses;

• interest rate risk calculator.

Mortgage calculator information and results are used as the basis for other sections. It gives a reasonably detailed picture of current and future expenses. The result will be more accurate and complete if you identify the correct numbers in all sections. If there is no separate field for specific costs, you can always add that amount to one of the lines you feel is most important for that purpose.

The Canadian Real Estate Association has provided an intelligent tool that takes into account the province and its tax which might help make an approximate estimation of approximate provincial land transfer tax;

If this is your first home or purchasing a newly built property, these fields will also affect the overall result. Some numbers you can change. Others (such as taxes) are included in the formula and cannot be affected unless you choose a different location with different or no such fees.

The section on cash requirements is an important reminder that taking out a loan based on the price of the property and the amount of the installments is not all you need to consider. Buying a property also involves cash outlays, which you should not neglect. Cash expenses depend on several factors, including the type of property (condo or house) and the property's location. Altogether it makes part of the cash expenditures scenario you will discuss with the mortgage provider. It helps make personal financial decisions leading you to smaller monthly payments, reasonable loan interest rates, and wise down payments when getting the loan desired for your purchase.

You can only regulate monthly expenses to a certain extent so your quality of life does not deteriorate. Besides utilities, monthly mortgage payments are something you have to pay anyway.

Interest rate risk is significant for long-term loans and variable interest rates. It can change significantly in the future along with the prime rate, and you need to have some reserve to service your mortgage loan under changing market conditions. The residual debt at the end of the term shows you what you have to work with in the future and what loan conditions you should better choose, taking into account your current situation and your financial possibilities.

The Land Transfer Tax calculator is designed to determine the percentage of the purchase price. All Canadian provinces levy the Land Transfer Tax, so this amount must be taken into account when buying a property.
The amount of tax depends not only on the province but also on the municipality, which may impose an additional land transfer tax on the purchase price.
First-home buyers in Ontario and British Columbia are entitled to an LTT rebate, and you can determine that amount (approximately) using this calculator.

The affordability calculator will show you you your prospects if you decide to buy a property that will strain your budget. This calculator can take into account not only your income but also that of your competitor. Based on your income and monthly or annual expenses that include loan servicing, house and condo payments, and taxes, you can see what portion of your financial pie can potentially be available for taking out a mortgage and improving your living conditions.

Why do you need a Realtor calculator?

Home buyers interested in a successful financial future use the general affordability rule. They take all possibly known factors and make a calculation. Typically calculated expenses include:

• CMHC insurance (mortgage default insurance);

• principal paid;

• property taxes and other corresponding payments related to legal registration procedures depending on province;

• monthly mortgage payment percentage of your household income;

• mortgage term and financial benefit of fixed rates vs. rates vary, etc.

Various professionals who are members of CREA (Canadian association working with real estate services) choose mortgage loan calculators to minimize their efforts and time spent on preliminary calculations. They gather as much information as possible and then use automated tools to see the benefits of each scenario.

The calculator allows you to see the result of your calculations in less than a minute in a convenient form: table and graph. Upon correct information you entered into the calculator, the calculator provides results deemed reliable but is not guaranteed accurate for 100%. Using a calculator when you consider taking a loan might help prevent borrower defaults and make mortgage loan servicing convenient for your budget.

A calculator shows you where you can save and can not cut expenses connected with a significant purchase. It allows to compare mortgage rates, see the advantages of insurable mortgages, calculate the total amount of interest paid under fixed rates, etc.

The formulas used by real estate webmasters of this site are accurate, but the results obtained are for informational purposes only.

How to use a Realtor calculator?

• Mortgage payment calculator

First, you need to gather the required numbers for the calculation. You may need to review real estate listings or talk to your potential home seller to determine the home price. It is good if you know the desired location of your home, as this will make the calculation more accurate, as you will also be able to see the estimated tax amount.

You will also need to enter the percentage of your down payment (note that the lender has its standards depending on the product and the loan amount). To make the calculation accurate, it's good to figure out a realistic percentage for the mortgage amount you need.

Mortgage insurance is calculated using a formula that the calculator knows. So at this point, you will get your preliminary mortgage amount.

In the next step, you will get information about your mortgage payments and the loan charge. This will depend on the amortization period you choose, the payment frequency, and taxes (land transfer tax, etc.).

When you buy your first home in Ontario or British Columbia and check the appropriate box, the calculator will give you the amount of the expected rebate. It is the same as the LTT amount, but limits are set at the provincial level.

The Cash Requirements section provides an automatic general calculation depending on the property type (house or condo).

The Expenses section requires you to enter data about your expenses. The monthly mortgage payment is automatically included in the first line. Still, you enter property taxes, other monthly debt payments, utilities, building insurance, phone, cable, and internet manually and get the total amount at the end of this section.

The Interest Rate Risk section is automatically calculated based on the previously entered data about your mortgage, which indicates the mortgage amount today (initial amount), the principal amounts paid during the term, and the remaining mortgage amount at the end of the term.

The mortgage payments are also calculated using three additional different interest rate scenarios and compared to the interest rate you selected in the first section of the mortgage loan calculator. Also, this section provides a graph of the approximate value for a five-year fixed rate mortgage since 2006 to give you an idea of how the situation might evolve based on past periods.

The amortization schedule is provided as a chart based on your selected mortgage to show how the payment burden would change over the life of your loan.

• The land transfer tax calculator that helps to calculate the land transfer tax, works in a straightforward way. You just need to enter the purchase price, province, and city, and the rest will be calculated automatically. The result depends on the city you enter, as it affects the amount of the real estate transfer tax and the municipal tax that is also calculated based on the property price. At the same time, the local tax is levied only by some municipalities. You can test some options if you are not quite sure where you will buy your house or condo.

It allows you to see what corresponding mortgage payments are affordable for you.

• The affordability calculator requires you to enter:

Your gross household monthly income and such current expenses as:

• Debt payments (credit cards, car, other loans, monthly mortgage payments which you already have, if any, etc.)

• Living expenses (property taxes, condo fees, heating costs, etc.).

The number of fields is limited, but if you consider other expenses constant and important, you can calculate their total amount and add them to one of the fields that best fit this category.

Different calculators offered by the Canadian Real Estate association help you evaluate the various cash expenditures scenario.