Mortgage Calculator

Welcome to the Mortgage Calculator. This calculator, care of Ratehub, will calculate your monthly payment with your corresponding amortization schedule. Its great! This is good information if you are looking to purchase a home. This calculator will allow you to look at various scenarios, like test down payment, amortization scenarios, and also compare variable and fixed mortgage rates! On top of this, it will also help you calculate Land Transfer Tax and CMHC Mortgage Insurance. logo

How to Estimate Mortgage Payments

Mortgage Payment calculations can be very complex to the buyer, these calculators have made it much easier for everyone. That is not to say these have replaced the expertise of your trusted advisor, however, they are great at painting a picture for any buyer when looking to buy their first home or to resale their current home and upsize!

This mortgage payment calculator, brought to you by RateHub, provides you with everything you will need to create different scenarios for your purchase. This will help you decide what mortgage product is right for your needs. 

Several factors go into the estimation of your monthly mortgage payment. Below are three numbers, which are particularly essential in helping you understand the numbers.

  1. Mortgage Amount: This amount is the price of your purchase, minus the down payment you are putting towards the purchase, if the down payment is under 20% of the purchase price then it will also include the CMHC mortgage insurance as well.
  2. Amortization Period: The total life of your mortgage is what is referred to as the Amortization Period. This basically is the number of years your mortgage balance will be spread across. An example of this is 20 Years, 25 Years, or 30 Years. 
  3. Rate: This is the interest rate you have negotiated with your lender. Rates can be broken down into two categories, fixed and variable. The lower the negotiated rate, the lower the payments!

How to use the mortgage payment calculator

Using the calculator, us very simple. Start by entering the purchase price of the property you have purchased or an estimated purchase price of a property you want to purchase. Select your amortization period and finally enter your negotiated mortgage rate with your lender. If you don’t have a negotiated rate the calculator will provide you with current best options for rates. Once these steps are completed, the calculator will illustrate what your estimated mortgage rate will be.

Depending on the size of your down payment, the calculator will illustrate for separate monthly payments and will automatically calculate the CMHC Insurance Premium, if your down payment is less than 20% of the purchase price. To modify this at any time, simply change the amount of your down payment as well as your payment frequency to understand how your payments can be modified.

We have a separate page in the Buyers section of this website, which illustrates the inner workings of Land Transfer Tax, Ontario Land Transfer Tax Calculator however, this calculator will also illustrate to you the Land Transfer Tax applicable together with the estimated amount of money you will need on closing of your purchase. It is important to note, purchasing in the City of Toronto has its own LTT on top of the Provincial LTT that is charged. This means you are paying twice the amount of LTT if you purchase in the City of Toronto. This is important as it will increase your closing costs by 40%.

When looking to buy a new home, it is important to first meet with your lender. If you don’t have a lender then ask me as I work with many lenders. Understanding the numbers will solve a number of issues that can come up during the buying process. Using this calculator is a great starting point as it will estimate what you can afford before you start your search and meet with your lender.

How to lower your mortgage payments

Who doesn’t want lower monthly payments? There are ways to achieve this. Reducing your purchase price for one, making a bigger down payment is also a good idea, if you can afford to, and increasing the Amortization Period is another way. A 20-year amortization period will yield a higher monthly payment than a 30-year amortization period. Lastly, a low mortgage rate is also essential. Depending on the federal and bank rates, going with a variable mortgage over a fixed might be something to consider. Always consult with your mortgage professional for advice.