Canadian Mortgage Calculator

Canadian Mortgage Calculator: Step-by-Step Guide

This guide will walk you through the process of using the Canadian Mortgage Calculator to calculate your monthly mortgage payments and other related details. Follow the steps below to get started.

Step 1: Enter Home Price

Home Price ($):

Input the total price of the home you are planning to purchase. This field requires a numerical value between $10,000 and $10,000,000, and must be entered in multiples of $1,000. Ensure this value is accurate for the calculation of your mortgage amount.

Step 2: Specify Your Down Payment

Down Payment ($):

Enter the amount you plan to pay upfront as a down payment. This is a required field and should be a number that is zero or higher, entered in increments of $1,000. The down payment will directly affect your mortgage amount.

Step 3: Input the Interest Rate

Annual Interest Rate (%):

Input the annual interest rate as a percentage, which will be used to calculate your mortgage payments. The rate must be between 0.01% and 25%, with increments of 0.01% allowed. Be sure you have the correct rate provided by your lender for the most accurate calculation.

Step 4: Choose the Amortization Period

Amortization Period (Years):

Select the number of years over which you plan to repay the mortgage. Options available include 5, 10, 15, 20, 25, and 30 years. This choice will influence your payment amount and total interest paid.

Step 5: Select the Payment Frequency

Payment Frequency:

• Monthly (12x per year)
• Semi-monthly (24x per year)
• Bi-weekly (26x per year)
• Weekly (52x per year)

Decide how often you would like to make payments each year. Your choice will impact the total number of payments and the total interest paid over the life of the mortgage.

Step 6: Review the Results

• Mortgage Amount: This is calculated by subtracting the down payment from the home price. It represents the total loan amount.
• Down Payment Percentage: This percentage provides insight into the portion of the home price you have already paid.
• Payment Amount: This result shows your regular payment amount based on the provided details.
• Total Cost of Payments: This calculates the total amount paid over the life of the mortgage, including both the principal and interest.
• Total Interest Paid: This field reveals the total interest cost over the entire mortgage period.

After reviewing the results, you can adjust the input fields to see how changes in parameters like down payment or interest rate affect your mortgage.