Posted onNovember 22/2015
Mortgage calculators are great tools that give you a snapshot of what you’ll be paying each month to finance your home. These calculators let you see how much your mortgage payments will be so you can get an idea of how much you need to budget each month.
When using a mortgage calculator it’s important to be honest and current. If you are expecting the property’s value to drop or increase before you buy it, but it hasn’t yet, don’t bank on it. The more accurate you are when you use the calculator, the better your results.
Below you’ll find examples of the information you’ll need on-hand to use mortgage calculators.
This will let you know how much funding you will qualify for.
Asking price: This is the asking price of the property you are looking to buy. Do not round up or down. Put the exact asking price.
Interest rate: This is the current mortgage interest rate. For the sake of this calculator it is assumed that you will be taking a fixed rate. This doesn’t mean that you must take a fixed rate when you take on a mortgage. Your broker will find the ideal package for you; however, for now, use a fixed rate.
Amortization: This is amount of time it will take you to pay off the mortgage in its entirety. Amortization periods can be as little as 10 years or as long as 35 years. However, in Canada the longest amortization period you can have on an insured mortgage is 25 years.
Heating: Each home comes with a unique heating cost. The size of the property will determine how much it costs to heat it.
Taxes: These are property taxes. These particular taxes are calculated by the provincial government and are based on the value of the home and the land it sits on. Homes in Toronto are subject to Toronto property taxes as well.
Condo fees: These only apply if you are buying a condo and cover the monthly operating expenses of the condo corporation.
You can try Northwood’s Qualifier here: https://www.northwoodmortgage.com/mortgage-calculators/mortgage-qualifier-calculator/
Land transfer tax:
This is applicable for Ontario residents only. Furthermore, all home purchases in Toronto are subject to Toronto Land Transfer Tax on top of the Ontario cost.
Purchase price in dollars: This is the total purchase price of the home. Do not round up or down when inputting the purchase price. It must be exact.
Land transfer tax in $: Land transfer tax ranges from .5% to 2% of the home’s purchase price.
You can try Northwood’s Land Transfer Tax Calculator here:
Mortgage calculators provide potential and current homeowners with tools to help them get their finances in order and create a monthly budget. Knowing exactly how much you will be spending on mortgage payments, condo fees, heating, land transfer tax, etc., can give you an idea of what you’ll need to buy your dream home.
For more information about mortgage calculators and to speak with a broker, contact Northwood Mortgages. We know mortgages better than anyone, so much so that it’s part of our name. Let us help you calculate your monthly payments and get you one step closer to your dream house.