Canadian Mortgage Calculator
This mortgage calculator can be used to figure out monthly payments of a Canadian home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate.
The calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the town property taxes, and their effect on the total monthly mortgage payment.
Do I really need a Mortage Calculator
Yes, mortage calculators in Canada and in the US can be very different.
How Much Can I Afford
The shortest answer to that question is: it depends on a number of factors. The most important are your gross household income, your down payment and the mortgage interest rate. Lenders will also consider your assets and liabilities. Your own lifestyle and debt comfort zone also come into play.
Use a Mortgage Affordability Calculator to estimate the maximum mortgage you can afford. This calculation is based on two simple rules that lenders use to determine how much of a mortgage you can afford. The first rule is that your monthly housing costs should not exceed 32% of your gross monthly household income. Housing costs include monthly mortgage payments, taxes and heating expenses. If applicable, this sum should also include half of monthly condominium fees.
Secondly, your entire monthly debt load should not be any more than 40% of your gross monthly income. This includes housing costs, and other debts such as car payments, personal loans, and credit card payments
Where Can I Learn About Lending Rules
Canada has seen a lot of changes to their mortgage rules lately. To keep up with the latest changes we suggest you try contacting a mortage broker.
Why Is There So Many Mortgage Calculators
Home buyers come in a variety of different situations so there are mortgage calculators for everybody. To start, we suggest a very basic calculator that you can build on to better understand what you can really afford.
I bank at a Canadian bank (TD, CIBC, etc) do I have to use their Mortgage Calculator
No! Similar to CMHC the TD Mortgage Calculator, the CIBC mortgage calculator or other are just some of the many free calculators offered by Canadian banks.
Do I have to use the CMHC Mortgage Calculator
No! The mortgage calculator at CMHC is just one of many you can use. While they might be a crown corporation that doesn't mean they don't have competition.
When will you have a more complex Canadian Mortgage Calculator
Our next version calculator, which again will be exclusively for Canadians. Should be released in the next 2-3 months; then you will be able to include your bills and more. The Canada mortgage calculator will also include taxes that exclusive to Canadians. Remember, when choosing a calculator, choose one for Canadians and designed for Canada's rules.