Several ways to calculate a mortgage in Canada
How do I know how much money I can take out a home loan?
The question of purchasing real estate is a pressing one for every Canadian and immigrant. One effective way to buy a home is to take out a mortgage. To understand how much you can expect to pay, use the methods outlined in this article.
The easiest way: to use a calculator
To quickly calculate your mortgage loan amount, you can use the special calculator on the Canadian Mortgage and Housing Corporation (CMHC) website. It is an official and constantly updated source of information.
Step 1
First, you need to calculate how much your monthly mortgage payment will be. To do this, you must enter into the calculator the price of the proposed home, the amount of the down payment, the interest rate, the depreciation period, and the frequency of payments.
You must first enter the value of the property, the down payment, and the depreciation period (how long the house has been in use):
A few tips for those who have decided on a mortgage
- Use the services of mortgage brokers — they will help you choose the bank with the best conditions
- Pay attention to the reviews and reputation of the broker you turn to
- Try to take out a mortgage loan below the maximum you can afford to protect yourself from unforeseen circumstances.
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