Canadian Mortgage Calculator
The Canadian Mortgage Calculator is a fixed-interest mortgage calculator specially customized for Canadian users with the CAD (Canadian dollar) as the currency. Just change the values in the fields and click "Calculate" to use.
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Mortgage Amortization Graph
Getting your first mortgage in Canada
In Canada, the traditional period for amortization of a mortgage (the time to pay it off) is 25 years. But this is done in periods of five years at a time. You can choose to pay the mortgage down in a shorter period than that, but not in a longer one.
Obviously, the longer the amortization period, the smaller your interest payments will be, but the more the loan will cost in total.
The five-year mortgage term is the amount of time your mortgage contract is in effect. At the end of each term, you need to renew your mortgage for another term. This is an opportunity to consider whether you'd like to make any changes to your mortgage. Most mortgage terms are five years, though shorter terms are possible. The agreed-upon interest rate is in effect for the term. At the end of the term, you can renegotiate the rate and other details of the contract for the next term.
You can choose between an open mortgage, which provides the flexibility of being able to repay all or part of your mortgage at any time without a prepayment charge, or a closed mortgage which limits your prepayment options, but usually offers a lower interest rate than an open mortgage.
Traditionally, mortgage payments are made every month. It is possible to arrange biweekly payments which will permit faster repayment and a lower loan cost. An accelerated bi-weekly payment, for example, means that you pay one-half of your monthly payment at a time, but pay every two weeks rather than two times a month. This means you make 26 payments a year instead of 24 — and those two extra payments make a significant difference.
Your mortgage offers you the option to build up a cash account. As you amortize the principal, you can use the funds stored there to take out cash when you need it. These funds are borrowed without charge, and are simply added back on to your mortgage principal.
There are also options for flexible payments and skipped payments.
Remember, your mortgage is portable -- if you move before the five-year term is up, you can apply your old mortgage to your new home. (If it's a more expensive home, you take out a new loan for the difference.)
What are Homeowners Association (HOA) Condo Fees?
This is one of the fields on the calculator. Homeowners Association (HOA) fees are funds that are collected from homeowners in a condominium complex to obtain the income needed to pay (typically) for master insurance, exterior and interior (as appropriate) maintenance, landscaping, water, sewer, and garbage costs. HOA fees are typically paid monthly.