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Canadian Mortgage Calculator

March 11th, 2011    •  Written by    •   No Comments »

Categories: Blog, Brokers, Canadian Mortgage Calculator, Canadian Mortgage Rates, First Time Home Buyers

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During the home purchasing process, there will come a time where you want to determine your maximum eligible borrowing amount and a suitable payment that fits your budget. A Calgary mortgage broker is always a great resource to help you through this but there are individuals out there who like to take charge and be pro-active during this process. These individuals like to run different scenarios on their own and here is where the use of an online Canadian mortgage calculator comes in.

By using a Canadian mortgage calculator, a potential borrower can determine not only their eligible borrowing amount based on their income and debt obligations (Mortgage Qualifier Tool), but also payment amounts, given their desired payment frequency, the rate they qualify for, and amortization schedule they choose (Canadian Mortgage Calculator Tool).

If you’re wondering about the links in the last paragraph, the Finance Consumer Agency of Canada has Canadian mortgage calculator and qualifier tools that are some of the best I’ve been able to find on the internet. Check them out and play around with some numbers.

If you’re looking for something more streamlined, the Canadian mortgage calculator on my site on the Mortgage Calculator page should suffice. In addition to providing you with your payment amount, you can also calculate maximum loan amount (if you know your rate and payment amount) as well as gauge what your balance outstanding would be at the end of the term and the interest you’d pay over the term and life of the mortgage (amortization).

It’s important, however, to recognize that if you lock into a variable Canadian mortgage, you’re susceptible to likely increases in your payments if rates increase. The opposite also holds true as your payments are likely to decrease if rates decrease. This is something to keep in mind if you are favoring a variable Canadian mortgage rate. It’s important that you discuss with your Calgary mortgage broker what your payments would be if interest rates increased. Your Calgary mortgage broker can help you by going over the scenarios along with a Canadian mortgage calculator to help you identify up to what point your payments would be within your budget if rates were to increase.

  

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