With a lot of Canadian mortgage calculators available online, you can easily compute your mortgage quickly for as long as you have the accurate data with you. Run down these guidelines in order for you to have an overview on how to go about calculating a Canadian mortgage.
- Find a mortgage broker or lending agency. When you have undergone the pre-mortgage qualification process with your real estate agent, finding a lending agency or a broker that will help you acquire a mortgage is your next step. There are a lot of financial institutions that offer home mortgaging in Canada to choose form such as banks, credit unions, finance and trust companies to name a few. It is highly recommended to speak to more than one lender because terms and options will vary. Get referrals from family or friends, look at the yellow pages, or contact the Canadian Association of Mortgage Professionals.
- Choose your interest rate. To know the current interest rates, you can ask the lending institution you have chosen or your broker to get an accurate figure. Choose if you want the interest fixed or variable. Fixed interests are rates that are fixed on a specific period of time. Variables rates, on the other hand, are interest rates that fluctuate and are usually tied to an index which adjusts depending on the prevailing interest rates in the market.
- Frequency of payments. The frequency of payments does not matter. Even if you can make your payments, weekly, twice a month or monthly, the total mortgage calculated and approved for you will not be affected. Of course, this philosophy can change should the institution providing you the mortgage offer you a promotional payment scheme that will either reduce your interest rates or provide you certain rebates.
- Term of the mortgage. This is an agreement between you and your mortgage provider with regards to the timeframe of your mortgage's efficacy. Generally, Canadian mortgage terms are anywhere from 6 months to 10 years. By the end of your mortgage term, assuming your payments are always on time, you will have the option to pay the remaining amount of your loan in full or have it recalculated based on the current market rates.
- Amortization. This is the length of time given for you to complete the payment of your loan. Most loans amortizes in a period of 25 years. There are options of 5 to 35 years as well. Having a shorter amortization period may have higher payments but the total interest charged is greatly reduced.
- Mortgage calculator. If you have already acquired the information needed to compute your Canadian mortgage, you can choose from a reputable institution such as The Royal Bank of Canada's website at rbcroyalbank.com to calculate your mortgage. All you need to do is enter the data need on the corresponding fields and calculate.
Buying property or a home can be a very delicate activity to engage in. It is wise to prepare yourself by knowing all aspects of ownership especially on mortgages. So, before taking that big step, make sure you are ready. Remember that when you are in doubt, consult the experts. A financial advisor or coach should do nicely.