Quick Calculations for 5 Year Mortgage
For those of you in our Collingwood, Blue Mountains, Wasaga Beach, Clearview, Meaford or Grey Highlands areas who are thinking about mortgages…did you know that Canadian mortgages are calculated semi-annually, not in advance, and therefore you cannot do a straight interest calculation to come up with an accurate mortgage payment.
Here’s An Example:
If you wish to calculate a 5 year mortgage, amortized over 25 years at current rates – say 3.19%, the multiplier is $4.83 per thousand dollars of mortgage.
So a $100,000 mortgage with a 5 year term, amortized over 25 years will cost approximately $483.00 per month. ($100 x $4.83)
Similarly, a $200,000 mortgage with the above terms/amortization would result in a monthly payment of approximately $966.00 per month. ($200 x $4.83)
