Using a mortgage payment calculator can help you accurately estimate your monthly mortgage payments and determine whether you can afford a particular home or mortgage product. Here are five important things to know about using a mortgage calculator:

1- Total Mortgage Amount

This figure represents the total cost of your new home, including the price of the property, minus the down payment, plus mortgage insurance if required.

2- Interest Rate

The interest rate is the annual rate charged by the lender on the mortgage loan.

3- Amortization Period

This is the total life of your mortgage and the number of years over which the mortgage payments will be spread. The maximum mortgage amortization period in Canada is currently 25 years.

4- Payment Frequency

Payment frequency options include weekly, bi-weekly, semi-monthly, and monthly payments. By making more frequent payments, you can pay off your mortgage faster and save thousands of dollars in interest. Opting for accelerated weekly or bi-weekly payment frequency can be a wise choice if you can afford it.

5- Term

The mortgage term is the length of time your mortgage contract is in effect, and it includes everything outlined in your contract, such as the interest rate. Mortgage terms can range from a few months to several years, and at the end of each term, you must renew your mortgage.

Use A Mortgage Calculator

By understanding these five factors and using a mortgage calculator, you can accurately estimate your monthly mortgage payments and make informed decisions about buying a home. To use the Government of Canada mortgage calculator, click here.