Mortgage Calculator


Mortgage Payment Calculator

Frequently Asked Questions

  • What is a Mortgage Calculator?

    A mortgage calculator is a valuable online tool that helps prospective homebuyers, or current homeowners estimate their monthly mortgage payments. You can get a rough idea of how much you'll owe each month by inputting essential information, like your purchase price, down payment, interest rate, and amortization period.

    How Does the Mortgage Calculator Work?

    A mortgage calculator takes key inputs, like your loan amount, interest rate, and loan term, and then applies a formula to calculate the monthly mortgage payment. It factors in the principal amount and estimates how much you can expect to pay each month. This is an excellent tool to help with financial planning.

    What Information Do I Need to Use the Calculator?

    To use the mortgage calculator, all you need to do is input your purchase price, down payment, loan interest rate, and amortization period.

    What is the Purchase Price?

    In the context of a mortgage, the purchase price is the total cost of the property you intend to buy or the total amount you paid for a house you already bought.

    What is the Interest Rate?

    The interest rate is the percentage a lender charges for borrowing money to purchase a home. It represents the cost of the loan and has a significant impact on your monthly mortgage payments.

    What is the Amortization Period?

    The amortization period is the total length of time, usually measured in years, to repay your mortgage in full. During this period, you make regular monthly payments that cover the loan’s principal and interest. The amortization period can impact your monthly payment amount and the total interest paid over the life of the loan.
  • What is a Down Payment?

    Ottawa mortgage brokers are there to assist you with home financing. A mortgage broker can assist with purchases, renewals and refinances for example. As a mortgage broker typically works for you for free. This is similar to a realtor who is helping you buy a home as the seller pays them. This is a great way to have an expert by your side at all times at no cost to you.
    Learn more: Purchase mortgage
    Learn more: Mortgage refinance

    How Accurate are the Calculations?

    It’s essential to keep in mind that mortgage calculators provide estimates. Therefore, the calculated result for your monthly payment may not be 100% accurate due to other factors and costs, like property taxes or homeowner’s insurance. For precise financial planning, it’s important you consult with a mortgage broker like me to ensure all angles are considered.

    Can I Include Property Taxes and Insurance in the Calculator?

    This mortgage calculator excludes property taxes and insurance. As mentioned, the mortgage calculator is an estimate based on set inputs. Therefore, it’s essential to factor in other variables, like property taxes and insurance, to get a more accurate picture.

    Can I Compare Different Scenarios?

    You can absolutely use the calculator to compare different scenarios. These tools allow you to input various parameters, such as different interest rates and amortization periods, and instantly see how each scenario affects your monthly mortgage payments.

    Is the Calculator's Result the Final Payment Amount?

    Are There Other Costs Not Included in the Calculator?

    While the calculator’s result provides a reasonable estimate of how much your mortgage payments will be, it does not reflect the final payment amount. The final payment amount can vary due to additional expenses and may be subject to change during the mortgage process.
    The mortgage calculator does not include all potential costs associated with homeownership. Some expenses not typically considered by the calculator include property taxes, homeowner’s insurance, private mortgage insurance (if your down payment is less than 20%), homeowner association fees, and closing costs.

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