Looking to buy a home or refinance your mortgage? Understanding the potential costs of your new loan is essential. Our convenient mortgage calculator can provide valuable insights to guide you on your borrower journey.
If you purchase a house in Toronto, Ontario for $700,000 with a down payment of $140,000 and an interest rate of 2.5%, you’ll have a monthly mortgage payment of $2,512. When you first purchase your home you will pay a $20,950 land transfer tax and pay annual property taxes of $4,197. Because your down payment is higher than 20% of the purchase price, you will not have to pay for mortgage default insurance. The average monthly cost of home insurance for your property will be $87.
To be a successful homeowner, you’ll need to reliably make your mortgage payments. Once you determine what your mortgage will cost, you can start budgeting for it and preparing your finances for what is sure to be a life-changing purchase.
The Myfinancesguru.com mortgage calculator considers three key factors: your principal loan amount, the interest rate provided by your lender, and the total number of payments necessary to complete your loan term.
Your mortgage payment generally includes principal and interest costs, though some loan products may feature interest-only periods. Additionally, if you’re obligated to purchase mortgage default insurance, those premiums might also be included in your monthly payment.
Understanding the cost of the mortgage you require is crucial in the homebuying process.
Utilizing a calculator like the one provided here can help you set realistic expectations as a homebuyer, easing the sometimes nerve-wracking experience of purchasing a home in Canada.
The principal refers to the initial amount of money that a homebuyer borrows from a lender to purchase a property.
The content provided on Myfinancesguru.com is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.
