Mortgage Calculators are great tools that help give you a snapshot of what you will be paying each month to finance your home. These calculations will help you see how much your mortgage payments will be so you have an idea of how much to budget each month towards your payments.
If you plan on using a mortgage calculator it is best to be honest and current. Don’t bank on a property’s value to drop or increase before you buy it. The more accurate you are with your information, the better the results will be.
This will let you know how much funding you will qualify for with your mortgage.
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.
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 our Mortgage Calculator here:
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.
Mortgage calculators provide potential and current homeowners with the tools they need to help them get their finances in order and to create a monthly budget. Knowing how much you will be spending on mortgage payments and can give you an idea of what you will need to buy your new home.
For more information about mortgage calculators or to speak with one of us about getting your new home contact us at Bosveld and Roach today. Let us help you today with your mortgage payments and get you one step closer to that new home.