Getting a mortgage can make the buying of your first home much easier-as it eliminates the need to pay the entire purchasing price up front. However, it can still be an incredibly daunting process. The Canada Mortgage and Housing Corporation has also created several calculators for use by homebuyers, for services ranging from affordability to mortgage rates and debt service.
Mortgage Calculator
This tool allows potential homebuyers to determine the mortgage rate that best suits their needs. In order to use it, they will need the following:
- The purchase price of your home
- The amount of your down payment
- The length of your amortization period (the time in which the mortgage is to be paid off).
If your down payment is under 20% of the purchase price, then you are required to purchase mortgage insurance (the size of which will be included in calculations). Mortgage insurance cannot be obtained if the purchasing price is over $1 million.
Click here to use the Mortgage Calculator.
Mortgage Calculator w/Amortization Schedule
This calculator generates an amortization schedule for your current mortgage. Quickly see your principal balances, as well as how much interest you will pay. The impact of any principal prepayments can also be determined. For a full amortization schedule, either by year or by month, press the report button.
Click here to use the Amortization Calculator
Affordability Calculator
This tool allows uses to calculate the housing option that best fits their price range. There are options for buying, renting or both. These are used in conjunction with a person’s income, monthly expenses and the province in which they live. Once all the above information has been entered, the affordability calculator will produce a rental rate that is the recommended maximum amount for them to afford comfortably.
Click here to use the Affordability Calculator.
Land Transfer Tax Calculator
Land transfer taxes are normally calculated as a percentage of the property value, with properties sold in Toronto also incurring municipal taxes. As a result, they often take up the largest percentage of closing costs. However, many provinces offer tax refunds for first-time buyers. In Ontario, the refund for first-time buyers has a maximum amount of $4,000, with properties priced at over $368,333 being eligible for the full refund. RateHub offers a tool than can calculate your land transfer tax rate, as well as the available refund depending on your province of residence.
