Mortgage Calculators
Whether you’re looking for a mortgage for a new home, refinance, or early renewal, there are many useful tools at your disposal to give an accurate gauge on what your monthly payments may be. Understanding your mortgage payments and having an idea of what you may be able to afford on a monthly basis is a big step in determining whether a home, and the associated mortgage, is right for you. Mortgage calculators are a great resource for taking that first step in determining affordability, and there are many different calculators out there. If you are unsure about what type of mortgage is right for you, contact Karen Canning, your Langley Mortgage Broker for expert mortgage advice.
How Do Mortgage Calculators Help
Mortgage payment calculators help to estimate your monthly payment and amortization schedule for the life of your mortgage. If you're purchasing a home, payment calculators can allow you to test different down payment and amortization scenarios, and compare variable and fixed mortgage rates. These calculators also help to determine your mortgage default insurance premiums and any other taxes and fees that may be applicable depending on the region you are looking to purchase in. Using a calculator is a great way to quickly compare affordability numbers when shopping for homes in your area. These calculators however are only useful if you provide them with the correct information.
What Information Do You Need?
There are several factors that go into estimating the amount your regular mortgage payments will be; but there are 3 particularly important figures.
The total mortgage amount: You’ve been shopping around and have a general idea of the prices in your search area. The total mortgage amount is the price of your new home, less your down payment amount, plus mortgage insurance, if applicable.
The amortization period: the amortization period is the total life of your mortgage, and the number of years the mortgage payments will be spread across. In Canada, a 25 year mortgage is generally the longest amortization period with some exceptions.
The mortgage rate: the rate of interest that you will pay against the mortgage. For qualification, borrowers must qualify for a rate 2% higher than they actually receive to a minimum of 5.25%. Keep this in mind when it comes time for mortgage qualification, and ensure your mortgage broker explains this nuance in detail.
What To Keep In Mind
Mortgage regulations in Canada are fairly consistent throughout each of the provinces, but some requirements can be impacted by home value and tax jurisdiction. In general, in Canada, the minimum down payment for purchase of a home is 5%, with the maximum amortization period 35 years; ensure you check local guidelines to see what impact they may have on the numbers listed above or contact your Langley or Abbotsford Mortgage Broker.
Contact Your Mortgage Expert
If you are unsure of what mortgage rules apply to your area of purchase, or what numbers you should be using in a mortgage calculator; be sure to reach out to a mortgage expert. Karen Canning, your Langley Mortgage Broker has been serving the BC mortgage market for over 15 years, and seeks to educate her clients about the many mortgage options available to them. Contact Karen today with any questions you may have, or to get started on your mortgage qualification or pre-approval process.