The interest rate on the outstanding balance of the mortgage, which can be fixed for the term or variable, fluctuating with the prime rate.
The term of a mortgage refers to the number of months or years that the lender and borrower commit to one another at the quoted interest rate and agreed-upon mortgage features. It differs from the amortization period in that mortgage terms usually range from 6 months to 5 years, while it may require a 25-year amortization period to pay back the entire borrowed amount, for example. Each time a term is up, you must either renew for another term with your current lender at new rates or find a different lender.
The amount that you pay upfront when purchasing a home. Depending on the type of mortgage, down payments generally range from 5% to 20% of the purchase price. Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. To help you make an estimate, a 10% down payment on a $500,000 property, would be $50,000.
Monthly costs for heating your home and water. If you do not know this amount, we suggest using an average monthly amount of $100.
Monthly condominium fees are charged for condo owners for use of common property and building expenses. Since many borrowers do not know this amount, we suggest using an average monthly fee of $300.
Property taxes charged by the municipality on your home, broken down on a monthly basis. Since many borrowers do not know this amount, we have estimated an average annual amount of $3,000 (or $250 per month).
All monthly payment obligations of the borrowers, such as loans, credit card balances, line of credit, child support payments (not including mortgage loan payments).
The combined total annual income before tax and deductions, including any supplemental income, for all borrowers for this mortgage.
The time over which all regular payments would pay off the mortgage. This is usually 25 years for a new mortgage, however it can be greater, up to a maximum of 30 years.
Based on the information you entered, this is the estimated maximum loan amount for which you may qualify.
Based on the information you entered, this is the maximum home price you can afford. This amount is equivalent to your down payment plus the Maximum Mortgage amount. This calculation is an estimate for informational purposes only, and does not include CMHC Insurance Premiums, applicable sales taxes, closing costs, or other fees that may be required.
Based on the information you entered, this is the maximum monthly mortgage payment you can afford.
Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment of 5%, with interest rates comparable to those with a 20% down payment. To obtain mortgage loan insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium payable is calculated as a percentage of the loan and is based on the size of your down payment. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.