Scotiabank Mortgage Calculator of March 2023

What is the Scotiabank mortgage calculator?

Scotiabank is headquartered in Canada but also serves customers outside the America. It offers a wide range of financial services, including loans and mortgages.

Scotiabank has made available online calculators for its main financial services. One can take advantage of its calculating tools to find means to save money and achieve one's goals, tax-free savings, benefits of bank cards, and, of course, loans offered by Scotiabank.

Scotiabank's mortgage calculators allow you to convert your funds into an appropriate loan product that meets your needs and expectations in terms of payment options, down payment amount, monthly mortgage payments, cost of the loan, payment frequency, amortization period, etc.

• “What can I afford?” calculator is a handy tool for finding acceptable financing options that will help you learn about the possibilities available to you in mortgage financing for purchasing your dream home.

• The “Rent or Own” calculator helps you look into the future by making some assumptions and figuring out which is more beneficial: continuing to pay for the use of someone else's property or it's time to buy your own and save money by no longer overpaying.

• The mortgage calculator runs different scenarios that allow you to see what seems realistic and helps you save money by paying less on your mortgage loan. Then, depending on whether you are ready to pay off your mortgage faster, you can follow the scenario with the small changes or spread your mortgage further.

• The mortgage comparison calculator allows you to compare different options Scotiabank offers from the standpoint of your mortgage amount, amortization, lump-sum payments, and savings options. It works for one mortgage loan, or you can see multiple variations.

• The mortgage prepayment calculator can help you decide if it is beneficial for your current situation to pay off the mortgage faster and how it would affect your credit burden and budget. This tool helps you minimize credit risk.

• “Be mortgage-free faster” calculator allows you to understand which options will help you build your equity by reducing your mortgage.

Why do you need the Scotiabank mortgage calculator?

According to the laws, customers must be informed about the terms, costs, and benefits. So, trustworthy lenders make sure that the loan terms, advantages, and disadvantages are correctly presented, and there is an opportunity to make a good analysis before applying for a mortgage loan (get details of your minimum down payment, monthly payment, interest rate, mortgage amount, affordable purchase price, mortgage term. etc.)

As a rule, a mortgage means a long-term commitment, and a borrower must be sure that the deal is acceptable and that they can repay their loans in full and on time. Mortgage calculators partially perform this analytical and descriptive information function.

There is absolutely no pressure to sell a particular loan product when you look through different scenarios and mortgage types, interest rates, and amortization periods. You can take your time and be independent of the banks' working hours. Only when you are ready to talk to the specialist and sign the loan agreement you can arrange your visit to the bank.

A simple online calculator tool will help you prepare for the conversation with the seller of your dream house to analyze additional details of your business from the point of view of constant and variable costs. For example, in addition to the cost of your home, you may consider choosing a standard heating system or an alternative heating system, the type of property (e.g., vacation properties or type B vacation properties, year-round road access, etc.) It makes life easier when you see clearly:

• whether you are eligible for refinancing;

• if there is a way to arrange a higher principal enabling you to purchase a bigger home;

• if there is a short-term mortgage affordable to you after comparing online long and short-term mortgage options;

• whether the fixed rate or variable rate meets your risk criteria;

• what monthly payment amount works well with your budget;

• if you should go ahead and purchase a home or keep renting for now;

• whether you can get a sufficient amount of mortgage to finance the purchase and can start negotiations;

• what lender offers you the best option for home financing (or refinancing).

In the long run, the calculation may vary depending on the type of interest rate (fixed interest or variable rate), the level of the prime rate, and the closing date, but you can save quite a bit of cash with a suitable home mortgage product.

In summary, mortgage calculators are created for the following purposes:

• informational;

• analytical;

• transparency: to clarify the benefits you can get by choosing this or that type of mortgage.

How to use the Scotiabank mortgage calculators?

The mortgage affordability calculator requires you to provide the following information:

• monthly information about your income and expenses, including servicing existing loans;

• mortgage information (product: one of twelve mortgage options currently offered by Scotiabank; interest rate, amortization). This calculation allows you to see the potential mortgage amount, minimum down payment, and mortgage default insurance premium (this option can be excluded at your discretion).

You can change the numbers to get multiple variations for decision-making and even test all twelve products to create a large data pool with various mortgage payments, lump sum, interest rates, down payment, mortgage payment, and different payment frequencies (bi-weekly, monthly, etc.)

“Rent or own?” calculator asks you to enter the following information:

• the approximate value of your home;

• available down payment;

• amortization;

• one of twelve mortgage products must be selected from the drop-box list;

• interest rate;

• expected appreciation of the house (the calculation is based on the hypothesis that the value would increase).

The second section is about your rent:

• your current monthly rent;

• the expected annual increase in rent payments;

• the period chosen for the comparison calculation is calculated with the help of the calculator.

As a result, you will see clear numbers that tell you what would cost you less and could be a good solution. For example, sometimes mortgage payments over the same period can be significantly lower than rent.

The mortgage calculator gives you a picture of the monthly mortgage payments and the amount of mortgage associated with such costs for you. To get this result, you need to fill in the fields with the requested information:

• mortgage amount;

• duration of the mortgage;

• type of mortgage;

• frequency of payments;

• lump sum amount if you are interested in paying off your mortgage faster.

The following calculator is called the Mortgage Comparison Calculator and is a separate section from the previous calculator. You can do multiple calculations if you are interested in comparing some mortgage products (especially if you know that Scotiabank offers several mortgage loan products).

The information you need to enter is the same as in the calculator above:

• amount of the mortgage;

• duration of the mortgage;

• type of mortgage product;

• interest;

• lump sum to accelerate repayment and kind of increase in your payments and their frequency (one-time or annual) by a percentage you choose.

By changing the numbers, you can decide which option is preferable.

The Mortgage Prepayment Calculator is a detailed tool to help you determine if this option is right for you. You are asked to fill carefully in the following information:

• whether you want to prepay or pay off your mortgage;

• how many months your current term is left;

• the amount you wish to repay;

• current interest rate;

• original mortgage principal amount ;

• discount for fixed-rate mortgages given to you initially;

• current mortgage balance;

• the cashback you received at the beginning of the term (if any);

• date, month, and year you first took out the mortgage.

“Be mortgage-free faster” calculator consists of three blocks:

• starting point;

• small changes;

• diversify your mortgage.

The calculation can be made for payment or amortization. You have to key in the following values:

• the anticipated value of the house;

• available down payment;

• expected annual appreciation of the home;

• interest rate;

• amortization;

• payment amount.
  Some assumptions are made for the calculation, for example:

• the mortgage starts from the first of the selected month;

• interest on the appreciation of the house is compounded annually;

• the equity shown at the end of the period is the equity delivered after the last payment.

The prepayment or increased payment is applied in the first upcoming month in which the payment is due.

In the small changes section, you can change your payment from monthly to more frequent (semi-monthly, weekly, etc.)

Select the lump sum and the frequency of the advance payment to apply.

In the block of diversification of your mortgage, you should choose:

• interest rate;

• mortgage type;

• payment amount.

As a result, you will see the amount you can save if the mortgage is completed faster.