CAD mortgages
#1
CAD mortgages
What are the general rates and conditions now, for example: a $600,000.00 house with a deposit of $100,000.00, what would the repayments be? (found my dream home but not sure if I can afford it....being too premature I think but one never knows)
#2
Joined: Oct 2007
Location: Ontario
Posts: 6,609
Re: CAD mortgages
Google "canadian mortgage calculator" and you should find what you are looking for... :0)
#3
Joined: Apr 2005
Posts: 9,606
Re: CAD mortgages
Always worth negotiating with the lenders. We renewed our 5-year term last year, for another five years, fixed at 5.79%. The lender has, without a whimper, agreed to cut that to 4.5%, with only a small penalty (that I will challenge).
#7
Re: CAD mortgages
Because I took out a variable rate mortgage in 2006 at a discount to prime. (Actually the 0.82% is a composite of an original mortgage and an additional borrowing at two different discount rate). I'm good for a couple of years but could be in for a shock if interest rates skyrocket by then.
#9
Joined: Apr 2005
Posts: 9,606
Re: CAD mortgages
Because I took out a variable rate mortgage in 2006 at a discount to prime. (Actually the 0.82% is a composite of an original mortgage and an additional borrowing at two different discount rate). I'm good for a couple of years but could be in for a shock if interest rates skyrocket by then.
#10
Re: CAD mortgages
4.5% is a rough guide to a fixed mortgage.
What you do need to know is that a fixed mortgage is for a maximum of 5 years at which point it will need to be renewed and at which point you can change provider if you so desire.
#11
Banned
Joined: Oct 2008
Location: the GTA
Posts: 3,824
Re: CAD mortgages
To give you some idea of payments based on $500,000 with 25 year amortization.
3% $2366 p/m
4% $2630 p/m
4.5% $2767 p/m
5% $2908 p/m
On a $600,000 purchase with $100k down you would be required to buy default insurance of, I believe 1.75% ($8,750) which can be added to the mortgage, increasing the above amounts accordingly.
Any bank lender will calculate for you the amount of mortgage you can obtain. This gives you some comfort when shopping as to how much you can afford, and get a mortgage.
3% $2366 p/m
4% $2630 p/m
4.5% $2767 p/m
5% $2908 p/m
On a $600,000 purchase with $100k down you would be required to buy default insurance of, I believe 1.75% ($8,750) which can be added to the mortgage, increasing the above amounts accordingly.
Any bank lender will calculate for you the amount of mortgage you can obtain. This gives you some comfort when shopping as to how much you can afford, and get a mortgage.
Last edited by Auld Yin; Apr 9th 2009 at 6:56 pm. Reason: More info added
#12
Joined: Mar 2009
Posts: 1,986
Re: CAD mortgages
This may not be relevant in the case of the OP, but worth noting anyway. Some employers (mine is an example) will guarantee a loan for up to the 20% minimum required to avoid the CMHC premium. I am required to have at least 10%, and the remainder can take the form of a personal loan at prime. Good deal at the moment. Worth checking I suspect if you work for a large company
#13
Re: CAD mortgages
To give you some idea of payments based on $500,000 with 25 year amortization.
3% $2366 p/m
4% $2630 p/m
4.5% $2767 p/m
5% $2908 p/m
On a $600,000 purchase with $100k down you would be required to buy default insurance of, I believe 1.75% ($8,750) which can be added to the mortgage, increasing the above amounts accordingly.
Any bank lender will calculate for you the amount of mortgage you can obtain. This gives you some comfort when shopping as to how much you can afford, and get a mortgage.
3% $2366 p/m
4% $2630 p/m
4.5% $2767 p/m
5% $2908 p/m
On a $600,000 purchase with $100k down you would be required to buy default insurance of, I believe 1.75% ($8,750) which can be added to the mortgage, increasing the above amounts accordingly.
Any bank lender will calculate for you the amount of mortgage you can obtain. This gives you some comfort when shopping as to how much you can afford, and get a mortgage.
#14
Joined: Jul 2005
Posts: 15,883
Re: CAD mortgages
#15
Banned
Joined: Oct 2008
Location: the GTA
Posts: 3,824
Re: CAD mortgages
This may not be relevant in the case of the OP, but worth noting anyway. Some employers (mine is an example) will guarantee a loan for up to the 20% minimum required to avoid the CMHC premium. I am required to have at least 10%, and the remainder can take the form of a personal loan at prime. Good deal at the moment. Worth checking I suspect if you work for a large company