Tag Archive for “mortgage calculator”

Canadian mortgage rates are low and housing prices are softening from province to province. But before running off to see the mortgage broker, Canadians entering the housing market for the first time should ask themselves whether they can afford a new home.

There are a number of steps prospective first-time buyers should take to assess their financial readiness before committing to home ownership, and being aware of the different aspects involved in qualifying for a loan and financing mortgage payments can start consumers off on the right track, according to M&I, part of BMO Financial Group, parent company of the Bank of Montreal.

The first thing potential homeowners should consider is how much of their income will be spent on housing. Between mortgage payments – which include interest and insurance – and property taxes, the costs can add up. One good rule of thumb is to keep the ratio of mortgage debt to income under one-third.
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A new report finds housing market trends in most cities remained relatively stable over the month of July as many buyers continued to use mortgage calculators to see the advantage of low rates.

According to the Conference Board of Canada, while home resales dropped in the majority of the 28 markets surveyed, just five of those declines were more than 5 percent. In addition, sales led their year-ago figures in 23 areas.

New listings showed mixed gains, with the number of new homes for sale increasing in 13 areas but falling in 15. However, just three cities saw fewer home listings than in July 2010.

The leveling off of sales trends in those areas reduced monthly price gains in 16 of 28 markets. Compared to last year, home values are up in 20 of those areas. Continue reading »

There are numerous good reasons as to why mid-term you may be considering the option of breaking your mortgage. You may have found yourself in need of extra finances, have located a much better rate, are aiming to consolidate high interest debts, are interested in early renewal or are paying out the balance of your home loan early.

Before you make your decision, you will need discuss the option with your mortgage broker and weigh the mortgage penalty fee against your potential future savings.

The Mortgage Penalty Calculator is a helpful resource Canadian Mortgage Trends has supplied to Canadian mortgage holders amid these important considerations. The calculator can provide you with an estimation of what your penalty fee will look like as you determine your best financial route. Continue reading »

A recent survey conducted by the Canada Mortgage and Housing Corporation revealed that an increased number of Canadians are doing their homework before entering the real estate market.

Many potential homebuyers are flocking to the internet to further their knowledge, using search engines to look up terms and find better options. Of those responding to CMHC's survey, 86 percent used a search engine to find the best interest rates, while 76 percent searched mortgage options and 69 percent looked for mortgage calculators. Continue reading »

One of the biggest issues for many first-time homebuyers is figuring out how expensive a property they can actually afford. Real estate professionals say that there’s a relatively easy way for people to determine how much they can afford.

Agent Andrew Bodnar told Postmedia News buyers first need to add up all of their debt, such as credit card payments or auto loans. Then, they should use a mortgage calculator to figure out what the annual mortgage payments and taxes on a property would add up to, plus half of any condo fees.

If that sum is more than 40 percent of their gross family income, then the home is probably too expensive. Although he adds that people with a very good credit profile might be able to get away with a ratio as high as 44 percent.

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Fixed Mortgage Rates

According to recent forecasts laid out by a CIBC economist, selecting a fixed-rate five year mortgage term over a variable rate mortgage could grant Canadian mortgagors the best mortgage rates over the next five years.

CIBC’s Benjamin Tal presented a chart at last week’s CAAMP forum to illustrate the savings a five-year fixed rate mortgage could potentially garner over a five-year variable rate mortgage.

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Knowing how much you can reasonably, comfortably and responsibly contribute to home ownership is paramount in your making a wise and sound investment on your Canadian property. The big four factors that generally contribute to this mortgage amount are:

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A growing number of Canadians are negotiating lower than advertised rates, according to a survey conducted last month by CAAMP and Maritz. While advertised rates have averaged 5.65 per cent over the past year, Canadians who have opted for a five year, fixed-rate mortgage within that timeframe have managed to secure an average rate of 4.23 per cent, saving 1.42 per cent in interest payments over their term.

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Imagine a mortgage calculator so comprehensive that the least expensive route to home ownership becomes tangible before a commitment is made; a mortgage calculator that can calculate beyond down payment, monthly payments, rates and amortization length.

Thanks to the Canadian Mortgage Calculator created by Jon Wittwer, this ability has become accessible to all prospective Canadian homebuyers with an Internet connection and Excel. Wittwer’s mortgage calculators actually take into consideration potential tax deductions mortgage interest can generate, and the lump sum payments you might make along the way.

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Should you continue renting or buy property? The first-time homebuyer’s sometimes lengthy debate.

If you’re currently questioning whether a home purchase would benefit your current economical situation, then you should utilize the free, online tool that is proving its usefulness abundantly: the Canadian mortgage calculator.

The online mortgage calculator does all the math for you, and is a great asset in determining your true budget for home buying. Mortgage calculators can go beyond down payment, amortization length and interest rate. Many mortgage calculators factor in some of the items you may, in the zeal of home shopping, overlook.

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