's mortgage payment calculator calculates your monthly payment and shows you the corresponding amortization schedule. If you are purchasing a home, their payment calculator allows you to test down payment and amortization scenarios, and compare variable and fixed mortgage rates. There is also a Mortgage Affordability Calculator
and a Land Transfer Tax Calculator.
If you are buying a house and your mortgage contract is with a federally regulated financial institution (the big banks), the new mortgage rules that came into effect Jan. 1, 2018 will have a direct affect on how much you can afford.
- That are getting either a high-ratio mortgage with a downpayment of less than 20% on the purchase price on a home (insured mortgage)
- Those with a down payment of at least 20% (uninsured mortgage)
- Are now subject to a mortgage stress test and have to qualify at a rate that’s higher than they actually pay
Buyers who make a down payment of less than 20% must qualify using either the Bank of Canada's five-year conventional mortgage rate
(qualifying rate), or the rate offered by your lender without adding the extra 2%, whichever is higher. Let's take a look at the following example:
- if you make down payment of less than 20% your lender offers a rate of 3.19%, you’ll have to use the 5.34% Bank of Canada's conventional mortgage rate in your stress test. ( 3.19% + 2%= 5.19% - Bank of Canada's conventional mortgage rate of 5.34% is the higher of the two)
Buyers who make a down payment of 20% or more, the minimum qualifying rate is based on either the Bank of Canada’s five-year conventional mortgage rate (qualifying rate) or the rate offered by your lender plus 2%, whichever is higher.
- If you make a down payment of 20% or more and your lender offers a rate of 3.19%, you’ll also have to qualify using a rate of 5.34%. ( 3.19% + 2%= 5.19% - Bank of Canada's conventional mortgage rate of 5.34% is the higher of the two)
To see how rising interest rates might affect your mortgage payments simply apply the Bank of Canada's five-year conventional mortgage rate (currently 5.34%), or the rate offered by your bank plus 2%, to your current mortgage using the Mortgage calculator below.
When your mortgage term comes to an end, you'll need to pay off your mortgage or renew it for another term. If your mortgage contract is with a federally regulated financial institution, such as a bank, and you are renewing an existing mortgage, then you don't have to go through a stress test. Your lender must also provide you with a renewal statement at least 21 days before the end of the existing term. You can try to negotiate a better rate with your current lender; however, your current lender will review your current financial situation including your credit score, how much debt you've accumulated and your current employment situation.
You can also shop around for a better rate, but you will have to go through a stress test. If you shop around and fail a stress test, you may have to stay with your current lender when refinancing. Remember, these rules only apply to the big banks and not private lenders; however, they have higher interest rates as they must assume the risk of default themselves. Renewing Your Mortgage from Financial Consumer Agency of Canada
If you’re planning on refinancing your mortgage, you’ll have to qualify according to the higher stress test rates rather than your existing contractual mortgage rate.
*This calculator is for illustrative purposes only. MSrealestate.ca does not guarantee the accuracy, reliability or completeness of any information or calculations provided by this calculator. MSrealestate.ca is not be liable for loss or damage of any kind arising from the use of this tool. Please consult with a mortgage and/or lending professional to review your options.