It also gives you a more accurate sense of what you can afford.īy using a mortgage calculator to estimate your payments, you’ll have a more realistic picture of the options available to you-and you’ll be better placed to assess mortgage products.
A mortgage payment calculator is an indispensable tool that will help you understand what your payments will be over time. Just how much a home mortgage will end up costing you over the long haul can be hard to fully grasp, especially when you factor in interest. But how do you ensure you get a mortgage that you can actually afford over the long term? That’s where a mortgage payment calculator comes in. What is a trigger rate? That’s when the interest rate hits a level when the entire mortgage payment goes toward interest, and not paying down the mortgage.
According to a National Bank of Canada report, the majority of variable-rate-fixed-payment mortgage borrowers who signed onto between 20 have hit their trigger rates this year. For the majority of Canadians, buying a home will be the single biggest purchase they ever make, and getting a mortgage is an essential part of this process.
