Skip links
Contact-us
Equipe Prospero | Courtiers hypothécaires

Mortgage Loan Calculator – Simplified Mortgage Payment Calculation

Have you found an interesting property or are you about to start shopping for a single-family home, condo, or duplex? To see if your project is feasible, the Multi-Prêts mortgage payment calculator is a very useful tool!

This calculator is programmed to simulate the features of your mortgage financing in different scenarios. It allows you to estimate monthly payments and loan amounts by considering factors such as the repayment term and down payment. Monthly payments and interest: with this mortgage calculator, you get an overview of your mortgage.

No need to be a math whiz to use it—the mortgage payment calculation is automatic!

Multi-Prêts Mortgage Payment Calculator

Multi-Prêts mortgage

How Does the Multi-Prêts Mortgage Calculator Work?

The Multi-Prêts mortgage calculator is an essential tool for anyone seeking to understand their mortgage payments. With this tool, you can simulate your mortgage loans based on different interest rate and amortization scenarios. Here’s how it works in practice:

Entering Financial Data

Start by calculating the amount you wish to borrow, which is the property’s purchase price minus your down payment. You can also choose your rate, each option impacting your monthly payments differently.

Repayment Term

The mortgage calculator allows you to select a repayment term suited to your financial capacity. You can adjust the term from 5 to 30 years, depending on your needs. The shorter the term, the higher your payments, but you’ll save on long-term interest costs.

Simulations and Projections

Once the data is entered, the Payment Calculator provides a complete overview of your periodic payments, allowing you to adjust payment frequency. You’ll also see how much you can save by finding the best mortgage rate.

 

Make an Informed Decision with the Multi-Prêts Mortgage Calculator

 

This calculator helps you make informed financial decisions regarding your mortgage solution, whether with a fixed or variable rate. You can also contact a mortgage broker from Équipe Distinction for more information!

 

Get My Rate

Tips for the Down Payment

In mortgage financing, the basic rule is simple: the maximum amount available depends on your down payment. The more capital you put down, the higher your chances of obtaining a larger sum and favorable conditions from lenders. Your personal contribution is calculated based on the property’s purchase price.

Regardless of the down payment amount, it’s possible to shorten the amortization period. For example, with a down payment of less than 20%, the maximum amortization is 25 years. A 30-year amortization, however, is only possible with a 20% or greater down payment. Therefore, an insured loan cannot have a 30-year amortization.

If the house costs $500,000, the down payment will be $25,000, and for a property costing $600,000, the down payment will be $25,000 + 10% of the additional $100,000, totaling a $35,000 down payment. Accumulating such a sum demonstrates solid savings habits to lenders.

However, having a substantial down payment doesn’t guarantee repayment reliability. For example, a young borrower may only have a 5% down payment but earn an annual salary of $200,000, which provides a very low debt ratio and high repayment capacity. Conversely, a retiree might provide a 50% down payment but have a limited repayment capacity due to a low pension income.

For properties priced over $1,000,000, the lender takes on higher risk and will require a larger down payment. If you also commit to a reasonable amortization period, you increase your chances of success! Note that the lender may not necessarily prefer a 25-year amortization over a 30-year one.

Finally, for purchasing a three- or four-unit property (if owner-occupied), your down payment must be at least 10%. Mortgage insurance is only required for insured loans with less than a 20% down payment.

Think You’ve Found the Perfect Property? Talk to a Multi-Prêts Mortgage Broker

 

Get My Rate

Tips for the Repayment Term (Amortization Period)

The Multi-Prêts mortgage calculator allows you to simulate loan costs based on the repayment term. The shorter the amortization period, the higher the monthly payments, but you save on long-term interest. Conversely, extending payments over a longer term reduces monthly payments but increases the total loan cost. With current home prices, it may be more challenging for borrowers to qualify with a 10- or 15-year amortization. Here are some specific recommendations:

01

If your down payment is less than 20%, choose a maximum repayment period of 25 years.

02

If your down payment exceeds 20%, you can choose a repayment period of up to 30 years.

Tips for Monthly Payments

 

Monthly payments play a central role in managing mortgage loans. Properly calculating your mortgage payments is essential for maintaining good financial health while repaying your loan. Here are some financial tips to optimize your monthly payments:

 

Before committing to a real estate purchase, use the Mortgage Calculator to estimate monthly payments based on your borrowing capacity. Adjust the amortization period to balance comfortable payments and reduced interest costs. A 25-year amortization is often recommended to maximize financing.

More frequent payments, like prepayments, can help reduce the total mortgage repayment cost. An accelerated payment frequency can be a good option for those looking to repay faster without significantly increasing the monthly payment.

By taking out life insurance or an insurance premium, you protect your loved ones in case of an unforeseen event. Some financial institutions, like Scotiabank, offer mortgage solutions that include this protection, ensuring loan repayment in the event of death.

 

By planning your monthly payments well and using tools like our mortgage calculator, you can optimize your mortgage solutions while maintaining good budget control.

The Multi-Prêts Mortgage Calculator

A 30-year amortization period is often recommended for clients with a tighter budget or those who do not qualify with monthly payments based on a 25-year amortization. It’s important to note that a 30-year amortization generally results in a slight premium on the interest rate.

Get My Rate

Starting today, use the mortgage calculator to simulate the actual cost of your loan based on amortization length, interest rate, payment frequency, and down payment.

Need advice? Seek help from a broker with Équipe Distinction!

Loading...