Buying a Home?
If you’ve made the decision to buy a home, congratulations! Home ownership is an amazing experience and a significant milestone for those people who take the plunge.
One of the first steps to take is figuring out what you can afford and what your regular mortgage payments will look like. Once you’ve been pre-approved for a mortgage, use our Ottawa mortgage calculator to figure out exactly what you’ll be paying, month-to-month, on your mortgage.
Ready to Refinance?
Have interest rates dropped since you signed your mortgage? You might be able to refinance your mortgage.
Refinancing your mortgage lets you take advantage of a lower interest rate and lower monthly payments, but that’s not all. Refinancing can also open the doors to accessing home equity, consolidating debt, and simplifying your monthly expenses
Time to Renew?
When your mortgage term is up, you have an opportunity to renegotiate the contract with your lender.
Your lender will likely start the renewal process approximately 5 months before the maturity date, or the date when the mortgage term ends. If your circumstances have changed, this window gives you an opportunity to renew your mortgage with more favourable terms.
Definitions of Values
Here’s a breakdown of each value to input into our Ottawa mortgage calculator.
This is the total purchase price of the property.
The amount of money you pay upfront for purchasing your home.
- The minimum down payment for homes less than $500,000 is 5%.
- Homes up to $999,999 require 5% on the first $500,000 and 10% on the price above $500,000.
- The minimum down payment required for homes over $1 million is 20%.
Please note that home buyers must purchase mortgage insurance if they make a down payment of less than 20%.
This is the interest rate on your mortgage, expressed as a percentage. Remember, mortgage rates are unique to your situation, depend on your provider, and are influenced by economic factors. Your interest rate may differ depending on:
- The term of your mortgage: The length of time your contract is in effect, which can range from one to ten years. It often takes multiple term renewals to pay your mortgage in full. Your mortgage term is not to be confused with the amortization period.
- Whether you have a fixed or variable-rate mortgage.
This is the length of time it takes to fully pay off your mortgage, which is an estimate based on your current term. The standard amortization period is 25 years if your down payment is less than 20%. To have an amortization over 25 years, you must have a down payment of at least 20% of the purchase price. Typically, the longer the amortization period, the lower your payments will be, but this also means you will end up paying more in interest over the mortgage’s lifetime.
This is the frequency at which you will make payments, whether it’s weekly, bi-weekly, or monthly.