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Mortgages

A mortgage is a rate, a term and a penalty.

Buying, renewing or refinancing: enter your amount and your rate, then read what the contract says happens if you leave before the term ends.

Purchase
Purchase
Renewal
Renewal
Refinance
Refinance

Calculators

Mortgage payment
Monthly payment$2,035.62
Total interest$260,685
Total repaid$610,685

For information only — not an approval, and not a rate offer.

How much you can borrow
Maximum purchase price$373,617
Maximum mortgage$323,617
Monthly payment$2,266.67
Limiting ratioGross debt service (GDS)Housing cost is the cap.
Qualifying rate7.00%The lender tests you at this rate, not yours.

For information only — not an approval, and not a rate offer.

Down payment insurance
Insurance premium$16,800Added to the principal: it earns interest for the whole amortization.
Total mortgage$436,800
Loan-to-value93.33%
Minimum down payment$22,500

For information only — not an approval, and not a rate offer.

Renewal difference
Difference per payment$289.68
Difference over a year$3,476
New payment$1,839.95
Current payment$1,550.27

For information only — not an approval, and not a rate offer.

Refinance break-even
Break-even2 yr 2 moBreak-even lands after the term ends: it does not pay for itself.
Estimated penalty$4,125trois mois d'intérêts
Monthly saving$161.95
Net saving over the term-$238

For information only — not an approval, and not a rate offer.

Land transfer tax
Welcome tax$4,904
When dueAfter closingBilled by the municipality, a few months after closing.

For information only — not an approval, and not a rate offer.

Fixed or variable
Fixed would have cost less by$6,328Over the five-year term.
Break-even increase0.50%Past this increase, fixed wins.
Fixed payment$2,681.63
Variable payment at first$2,578.93
Variable payment after increase$2,839.13

For information only — not an approval, and not a rate offer.

Debt consolidation
Freed up each month$866.20
Extra interest paid overall$16,439Spreading a short debt over the full amortization often cancels the rate advantage.
New monthly payment$175.80
Current payments$1,042.00

For information only — not an approval, and not a rate offer.

The clauses that cost money

Two offers at the same rate are not the same deal

ClauseWhat it changesWhat to ask the lender
TermHow long the rate is locked in, usually 1 to 5 years. Not the same as amortization.What happens if you sell or refinance before it ends.
Fixed or variableFixed locks the payment; variable follows the lender’s prime rate.Whether the variable converts to fixed, and at what rate.
PenaltyOn a fixed rate, the greater of three months’ interest or the interest rate differential (IRD). Every lender calculates the IRD its own way.The exact calculation method, written in the contract.
PrepaymentThe share of the principal you can pay down each year without penalty.The annual cap, and whether you can double a payment.

Run the numbers before you talk to a lender

Buying, renewing or refinancing
S-01First purchase

The listed price is not what you will pay: add the default insurance premium, the land transfer duties and the notary.

  • — Down payment and CMHC premium
  • — Land transfer duties (welcome tax) and notary
  • — Payment at the qualifying rate
Run the numbers
S-02Renewal

The renewal letter your lender sends is rarely its best rate. Compare before you sign it and send it back.

  • — Remaining balance and amortization
  • — Payment at the new rate
  • — Dollar gap between two offers
Run the numbers
S-03Refinancing

Breaking a term costs a penalty, plus the notary and the appraisal. Work out how many months of savings it takes to recover them.

  • — Penalty: three months’ interest or IRD
  • — Notary, appraisal, discharge
  • — Months to recover the costs
Run the numbers