Mortgage calculator
The Top Law Firm Ontario Mortgage Calculator allows you to estimate your mortgage payments using the total cost of the home, your down payment, a fixed interest rate, the amortization period, and your pay periods. Once completed, you can click the chart icon to get a more in-depth breakdown of your mortgage payments.
Note: mortgage amortization
A down payment of less than 20% of the price of your new home will require mortgage insurance on the loan. You will also only be able to amortize your home for 25 years.
The total amount is not the amount your home is worth but the total amount of your mortgage.
What is a mortgage?
A mortgage is a loan that is secured using the equity of a property. A loan is commonly paid to the lender over a long amortization period of 15 - 30 years. Amortization is simply the process of paying off debt using regular payments. The term of a mortgage can vary, but commonly can be anywhere from 1-5 years in length prior to a renewal or refinance is required.
What inputs are used in a mortgage calculator
A mortgage uses a few different items to properly calculate an accurate mortgage payment.
Key Mortgage calculator components:
- Loan amount— The total amount borrowed from the lender (this is not the purchase price).
- Down payment— The amount of money you put into your newly purchased home. This is typically paid out of pocket and is a percentage of the total purchase amount. New home buyers in Canada can have a down payment as low as 5%. A 20% down payment is recommended to avoid incurring more costs on your mortgage.
- Amortization period— The length of time the loan must be paid in full. Mortgages in Canada are commonly between 15 and 25 years.
- Interest rate— A percentage of the total cost being borrowed. This amount goes to the lender as a fee for loaning the money. There are fixed-rate and adjustable-rate mortgages available.
Early repayment options
A mortgage can be one of the largest financial debts you will ever enter into. It is common for a household to want to repay this obligation as fast as possible. The faster you pay off your mortgage, the lower the interest fees you will incur. To pay off your mortgage faster you may have three options: you can make extra payments, increase your payment schedule, or pay your lender in a large lump sum.
There are often some drawbacks to early repayment. This will depend greatly on the fine print of your unique mortgage. Make sure to ask questions about your repayment options when signing your mortgage. You can incur costs because of penalties or a loss of tax deductions.
*Disclaimer: This mortgage calculator is for informational purposes only. For more in-depth information and when making important financial decisions please speak to your mortgage specialist. While we make every effort to keep it up to date, The Top Law Firm doesn’t guarantee the accuracy and reliability of this calculator. The Top Law Firm is not liable for loss or damage of any kind arising from the use of this tool.