Mortgage Calculator

Mortgage Repayment Summary

Note: Since the PMI is usually paid only at the beginning of the mortgage term while the property tax is usually paid annually, the monthly payment calculation with tax and pmi is simply taken as an average over the full length of the mortgage term.

Payment Breakdown

Property Tax

Note: Property Tax is calculated on the value of the home determined by the government and is paid annually but sometimes can be included into the mortgage payment plan. Needless to say, the property tax is always paid every year regardless of whether the mortgage is paid off or not, as long as you are the legal home owner.

Private Mortgage Insurance (PMI)

Note: PMI is usually only required when the down payment is less than 20% of the home value or purchase price. The insurance is to provide coverage for the lender in case the borrower can not pay off the mortgage and the lender can not cover the cost of the mortgage by the resale of the property. Thus even though the insurance is paid by the borrower, only the lender is covered. The idea behind it is to convince the lender that you are not likely to default on the mortgage and willing to pay extra for insurance since you choose to pay less than the minimum down payment to avoid having to pay for PMI.

To obtain Mortgage Insurance for yourself and not the lender, in the case you can not pay off the mortgage due to loss of job, injury, or death, etc., you would need to obtain separate insurance from a licensed insurance broker or your bank. Make sure to read the fine print about the Mortgage Insurance you consider getting as well as fully understanding every question on the medical overview questionnaire, even it if means going over it with your doctor. This is because many banks and insurance companies have what's called a "Post Claim Underwriting" method of checking your medical history AFTER you file for a claim on your insurance. This means that they are lenient in accepting you for the insurance but they are very strict in actually giving you your claim in the case you need the insurance! Any part of the initial medical questionnaire can possibly void your claim if they deem it inaccurate, even if that question has very little to do with your actual claim! You can learn more by watching CBC Marketplace Investigation on Mortgage Insurance.

Monthly vs. Bi-Weekly Payment (Excluding Tax/PMI)

Note: The bi-weekly payment is usually taken as simply half the monthly payment. Also, it is important to make sure to consult with your bank over any hidden fees or tactics involved in their Bi-Weekly Program! Any hidden fees may add up to offset the interest savings and may even end up costing more than going with a traditional monthly mortgage payment plan! Banks are always pinching pennies and a bi-weekly plan requires them to monitor a greater number of payments which is why they want to offset those extra costs with hidden fees so make sure you are well aware and ask a lot of questions to your bank or mortgage broker!

Balloon Payment Breakdown (Excluding Tax/PMI)

Note: Although using a balloon payment mortgage strategy involves paying extra in total interest, the actual monthly payments are lower. This is sometimes useful for businesses or people that have low income in the near future but forecast a higher income or revenue in the future. This makes it easier to pay the lower monthly mortgage payments in the short term while allowing them to use the higher future income to pay off the final balloon payment. With all non-conventional mortgage payment strategies (even with the conventional ones!), it is important to go over and understand all the fine print, hidden fees, terms and conditions that your bank may have. Another very important note to make is to go over the scenario where you may not be able to pay off the final balloon payment and if possible would like to extend your mortgage plan, so make sure you go over that with your bank or other mortgage provider too!