Mortgage Payment Calculator

Contact Us

Located in Burnaby, we serve throughout British Columbia, including, but not limited to the cities of Vancouver, Burnaby, Richmond, New Westminster, West Vancouver, North Vancouver, Port Moody, Coquitlam, Port Coquitlam, Pitt Meadows, Maple Ridge, Mission, Surrey, Delta, Cloverdale, Langley, Abbotsford and surrounding cities.

Analyze your mortgage payment

Mortgage Amount

The initial sum of money that a borrower borrows from a lender.

Payment Frequency

Mortgage payment frequency refers to how often borrowers make payments on their home loans. Common options include monthly, biweekly, or semi-monthly payments. Monthly payments are made once a month, while biweekly payments split the yearly amount into 26 payments a year. Semi-monthly payments divide the monthly amount into two equal payments, typically due on the 1st and 15th of the month. The choice of frequency can impact the overall interest paid and the speed at which the loan is paid off. More frequent payments may reduce interest costs and lead to earlier loan payoff. For more information click —> Mortgage payment Frequency

Fixed Rate

A fixed-rate mortgage is a home loan where the interest rate remains constant throughout the entire loan term, typically ranging from 1 to 10 years. This means that borrowers pay the same interest rate and consistent monthly mortgage payments for the chosen term, regardless of market interest rate fluctuations. Fixed-rate mortgages offer financial predictability and protection against rising interest rates, making them popular for budget-conscious homeowners.

Variable Rate

A variable rate mortgage in Canada, often referred to as an adjustable-rate mortgage (ARM), is a home loan where the interest rate can fluctuate based on changes in the lender’s prime rate or another specified benchmark. These mortgages typically offer lower initial interest rates compared to fixed-rate mortgages, but they can change periodically, which can affect monthly payments. Borrowers may experience savings if rates remain low but also face the risk of increased payments if rates rise. Variable rate mortgages often come with terms like 3, 5, or 10 years, during which the rate remains fixed before potentially adjusting. They suit borrowers willing to accept interest rate fluctuations for potential savings.

Rate Term

The term of a mortgage refers to the agreed-upon period during which the borrower and lender commit to specific mortgage terms and conditions, including the interest rate. Typical mortgage terms in Canada range from 1 to 10 years, with the most common being 5 years. During this term, the interest rate remains fixed (for fixed-rate mortgages) or variable (for adjustable-rate mortgages) as per the contract. At the end of the term, borrowers can choose to renew the mortgage at the prevailing rates, pay off the remaining balance, or refinance. The choice of term duration influences the predictability and cost of the mortgage over that period.

Amortization

In Canada, the amortization in a mortgage represents the total number of years it takes to fully repay the loan, including principal and interest. Common amortization periods are typically 25 to 30 years, but they can vary. A longer amortization period results in lower monthly payments but higher overall interest costs, while a shorter term increases monthly payments but reduces the total interest paid. The amortization does not necessarily coincide with the mortgage term; the latter is usually 1 to 10 years, during which interest rates are fixed or adjustable. Borrowers can choose the amortization period that suits their financial goals and capacity.

Pay your mortgage faster

In Canada, there are several strategies to pay off a mortgage faster, including Payment Increase, One-time Pre-Payment, and Annual Pre-Payment:

Payment Increase: This method involves increasing your regular mortgage payment amount. You can typically do this when you renew your mortgage or sometimes even during your current term. By increasing your regular payment, you’re putting more money toward the principal (the loan amount), which can significantly reduce the interest you pay over the life of the mortgage. The higher payments help you pay off the loan quicker and build equity faster. However, this strategy might require you to budget for higher monthly payments.
One-time Pre-Payment: This involves making a lump-sum payment toward your mortgage principal. You can do this at any time during your mortgage term, subject to the terms of your mortgage agreement. One-time pre-payments can come from bonuses, tax refunds, or other windfalls. By reducing the principal amount, you reduce the overall interest charged on the mortgage, leading to earlier loan payoff.
Annual Pre-Payment: Many mortgage agreements allow borrowers to make an annual pre-payment of a certain percentage of the original mortgage amount (often around 10-20%). This extra payment goes directly towards reducing the principal and is in addition to your regular mortgage payments. By making this annual contribution, you reduce both the principal and interest over time, accelerating your mortgage payoff.

Each of these strategies can help you pay off your mortgage faster and save on interest costs. It’s essential to check your specific mortgage terms and discuss these options with your lender, mortgage professional or financial advisor to determine which strategy aligns best with your financial goals and circumstances. Additionally, some mortgages may have restrictions or penalties for pre-payments, so understanding your mortgage terms is crucial.