Mortgage Payment Calculator Description
Use this mortgage payment calculator to give you an estimate of what the cost of a mortgage will be on your next property. You can adjust the term, interest rate, down payment, and the listing or selling price. Below you’ll find the glossary of terms to help assist when using the mortgage payment calculator.
When purchasing a property, most rely on a loan to pay for the property over a period of time, this is called a mortgage. The mortgage company will use your property as a security for the loan should you fail to make payments, otherwise known as a foreclosure.
A mortgage term is how long you’ll be paying off a mortgage. This can also can be considered the time at which point you’ll no longer have a mortgage. The maximum length is 30 years with 20% down. With less than 20% down payment, the maximum length is 25 years.
An interest rate is a percentage that you pay to borrow the money for your property. In Canada, this is typically renewed every five years with your lender.
The down payment is the amount that you’ll be putting towards the property. In most cases, there is a minimum requirement of a 5% down payment.
A listing price is the amount of money in which the seller has their property listed on the open market.