If nothing else, you will have learned a great deal about how mortgage costs are calculated. Playing with these variables will identify opportunities for you to save money on your home, even before you contact a lender or mortgage broker. If you’re not sure if homeownership is for you, a renting versus buying calculator is a good place to start.įinally, one advantage of mortgage calculators is that they allow to you model different scenarios based on different purchase prices, down payment amounts, amortization periods, and so on. This information can help you build a budget and ensure your other financial priorities, like paying off debt and saving for your future, remain on track. Some calculators help reveal the true costs of homeownership, including the cost of property and land transfer taxes, home insurance and utilities. Mortgage calculators can help answer all of these questions. Typically, the money must be paid back over a period of five to 25 years, so picking the right mortgage product is crucial.Įven if you’re comfortable with your choice, you will (and should) ask yourself questions as time passes and your financial situation changes: Could I get a more competitive mortgage rate? Should I absorb the financial penalties that come with switching lenders? How much am I really paying to own a home? These buyers must take out a loan, called a mortgage, to cover the remaining balance. The vast majority of home buyers don’t have enough money on hand to cover the cost of purchase. You wouldn’t buy a car without knowing what it would cost you on a monthly basis, and you shouldn’t buy a home without an accurate idea of how it will impact your finances, either. Why should you use a mortgage calculator? Learn more about our advertising and trusted partners. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. ![]() MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999.
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