A mortgage qualification calculator in Ontario is beneficial in several ways. It provides a rough estimate of mortgage payments and allows homeowners to compare different mortgage types. 

By entering property value, the down payment, depreciation, term, and interest rate, you can quickly view how much of a mortgage you can afford.

Why should I use a mortgage calculator?

There are many reasons to use a mortgage calculator. While contacting a lending officer is always advisable, mortgage calculators provide a rough estimate of what you can afford when looking for a house. They provide a baseline when renewing a mortgage with your financial institution and can assist with re-negotiations.

There are additional reasons for using a mortgage calculator that people rarely consider. These include:

  1. Allowing you to examine different scenarios. Homeowners can insert different variables into the calculator to examine various options.
    Depending on your situation, you may be looking at what options increase your cash flow or help you pay off the mortgage quicker. A mortgage calculator equips you in making informed decisions.
  2. Examining the feasibility of purchasing a new home. No one wants to go into debt, and not being able to make payments is worse.
    Mortgage calculators assist you in understanding how large of a home you need. It allows you to determine if the size meets your needs or if it is best to remain at your current location.
  3. Assisting in budgeting. Mortgage calculators assist you in determining whether the payments fit within your budget.
    Again, it also shows the price range that you can afford. It allows you to make informed decisions while deciding on a house and what savings you need before purchasing.
  4. Saving time. Engaging in different scenarios allows homeowners to make side-by-side comparisons. The tools will assist in determining the length of the mortgage, the type, and the best repayment method.
    This knowledge saves time when going to a lender. You will enter knowing what you are looking for and what scenario works for you. 
  5. Saving money. By going through different variables like amortization, down payments, and interest rates, homeowners can determine what is best for them.
    This knowledge becomes empowering when meeting with a lender to negotiate your mortgage.
  6. Helpful in mortgage re-negotiations. When your term is up, your lender will contact you to renew your mortgage. A mortgage calculator will allow you to see what options are available.
    Furthermore, if you are unhappy with your current financial institution, mortgage calculators from other places will assist you in making an informed decision.

Many homeowners miss out on the benefits of using a mortgage qualification calculator in Ontario throughout their journey. These aren’t just advantageous while purchasing a new home or when moving. They also have intrinsic value when re-negotiating or renewing your mortgage.
Mortgage calculators are instrumental in educating homeowners in making informed decisions. 

Whether you are looking to purchase a house, move, or re-negotiate your term, Northwood Mortgage can help. Call us at 1-888-495-4825 to book your appointment or visit us here.