Mortgage calculators at your fingertips!
A multitude of calculators for you to figure out your details. Mortgage Calculator, Purchase Calculator. Land Transfer Tax Calculator, Debt Ratio Calculator, Closing Cost Calculator and more..
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Get Pre-Qualified
Answer a few easy questions and estimate your maximum purchase price without a credit check.
Knowing exactly what you can afford is the first step towards home ownership!
This is your first step
Knowing exactly what you can afford is the first step towards home ownership!
Easy & Accurate
Also, super fast! You’ll get all the details you need before pre-approval.
Private & Secure
It’s private, secure and you don’t need a credit check to complete the pre-qual.
Side-by-side comparison
Mortgage Rates
Let’s say you’re considering two mortgage options—one with a rate of 5.49% and a second with a rate of 5.59%. Of course, choosing a mortgage is about more than just the interest rates. However, if you want to look at it from a number perspective, the great thing about the Canadian Mortgage App is that you can.
With the side-by-side compare feature, you can compare the two interest rates over the term of your mortgage to see how much interest you’ll pay for each of them. The Canadian Mortgage App makes things even more convenient by clearly spelling out how much interest you’ll save from one mortgage option to the next.
Insured vs. Conventional
Another thing you might be considering is 10% down vs. 20% down. If you have enough to make a 20% down payment, you can put 20% down or go with a lesser down payment of 10%.
Why would you go with a lesser down payment of 10%? Maybe your money is invested in the stock markets, and your investments are down. Perhaps you feel better with more emergency savings in the bank.
Whatever the reason, the Canadian Mortgage App makes it easy to compare the two options with its side-by-side feature. You can see how much you’ll save in interest by putting 20% down. When you put less than 20% down, you’re required to pay mortgage default insurance. The Canadian Mortgage App even factors that in.
25 vs. 30 Year Amortization
If you’re putting at least 20% down, you can choose a 25 or 30-year amortization. Amortization is a fancy way of saying the time it takes to pay your mortgage in full if you make the minimum payment.
Why would you go with a 30-year amortization instead of a 25-year amortization? It makes it easier to budget from a cash flow standpoint. The payments for a 30-year amortization will almost always be more affordable than a 25-year amortization. However, there is a downside. You’ll end up paying more interest over the life of your mortgage since you’re stretching your mortgage out an extra five years. The mortgage rate for a 30-year amortization is also usually about 0.10% higher than a 25-year.
The great thing about the Canadian Mortgage App is that you can compare the 25-year and 30-year amortization to see precisely how much more interest going with a 30-year amortization will cost you and whether it’s worth it.
The Mortgage Stress Test with the Canadian Mortgage App Calculator
The Mortgage Stress Test
If you have bought a home in recent years, you should know the mortgage stress test. It’s a test to keep Canadians from overextending themselves when buying a home.
The stress test was introduced several years ago. Under the stress test, you must qualify at the higher mortgage stress test rate (currently 5.25%) or your mortgage rate plus 2%.
Each December, OSFI decides if it will change the stress test rate. To no one’s surprise, OSFI chose to leave the stress test rate the same at 5.25%. However, this doesn’t mean much and here’s why.
Canadians are required to qualify at the greater stress test rate or their mortgage rate plus 2%. With the stress test rate being 5.25%, we would have to see mortgage rates below 3.25% for the stress test rate to come into play. We are nowhere close to that with fixed mortgage rates in the 4-5% range and variable in the 5-6% range. Therefore, keeping the stress test rate the same is relatively meaningless.
It could only impact Canadians if Canada’s banking regularly raised the stress test rate enough to qualify at a higher rate, which it didn’t.
How much do you “actually” save when you pay your Mortgage sooner?
With mortgage rates increasing, you may think of ridding yourself of your mortgage debt sooner rather than later. You’re not alone. Let’s look at three simple ways to pay down your mortgage sooner.
Increase Payment
Do you have extra money at the end of the month and are unsure what to do with it? If you leave the money sitting in your savings account, you’re most likely losing money since savings account rates tend to be much lower than the rate of inflation. If you have a mortgage rate in the 4% or 5% range, you can get a much better return by putting the money against your mortgage.
Increasing your payment makes sense if you have extra money at the end of each month and want to pay off your mortgage faster without thinking about it. When you increase your payment, your mortgage payment is automatically higher, without you needing to do anything or think about it.
Most lenders are flexible. You can increase your payment by $50, $100 or whatever you can afford. Unlike a regular mortgage payment split between principal and interest, that extra $50 or $100 goes entirely towards the principal, helping you pay down your mortgage much faster.
One-Time Payment
The second option is a one-time payment. Let’s say you receive an unexpected one-time chunk of change. Maybe it’s a spot bonus at work. Perhaps it’s a one-time inheritance. Whatever the reason, you can choose to put some or all that money toward your mortgage.
The beauty of a one-time payment is that, like increasing your payment, the one-time fee entirely goes toward your principal. If your mortgage balance is $500,000 and you make a $2,000 lump sum payment, your balance will be $498,000. It’s as simple as that.
You’ll also pay less interest on your mortgage over its lifetime, as the interest is calculated on a lesser balance. It’s a win-win situation.
Annual Prepayment
The third way to pay down your mortgage sooner is to make annual prepayments. Instead of receiving a one-time amount, let’s say you expect to receive the same amount each year. Examples of this include a tax refund or workplace bonus.
Like a one-time payment, when you make annual prepayments, the amounts go entirely towards reducing the balance on your mortgage. And doing it over time adds up in terms of principal and interest savings.