Mortgage Payment Calculator
Disclaimer: The mortgage calculator and information provided on this page are for general informational purposes only and do not constitute financial, legal, or tax advice. Calculations are estimates and may not reflect actual mortgage terms offered by lenders. Users should consult with a licensed mortgage broker, financial advisor, or lender for personalized advice and official mortgage rates. We do not guarantee the accuracy or applicability of any figures shown. Use of this tool is at your own discretion and risk.
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What Is a Mortgage?
A mortgage is a loan that helps you buy a home. You borrow money from a lender. typically a bank or credit union—to cover most of the home’s cost, and then repay it over time with interest. In British Columbia, most homebuyers use a mortgage to finance their purchase, and the terms depend on factors like your down payment, interest rate, and loan period.
How a Mortgage Is Calculated
Your mortgage payment is mainly based on five key components:
- Purchase Price: The total cost of the home.
- Down Payment: The amount you pay upfront. A higher down payment means you borrow less.
- Term in Years: The length of time you take to pay off the loan. Common terms are 15, 20, or 25 years.
- Interest Rate: The yearly rate your lender charges for the loan.
- Property Tax: The annual tax based on your home’s value. This can be included in your monthly estimate.
How to Use the Mortgage Calculator Below
To estimate your monthly mortgage payment using the calculator:
- Enter the purchase price of the home.
- Input your down payment amount (either a flat amount or a percentage). In BC, the minimum is 5% for homes under $500,000.
- Choose your desired term in years.
- Enter the interest rate provided by your lender.
- Add your annual property tax if you want it factored into your monthly estimate.
- Click Calculate to see your estimated monthly mortgage payment.
This estimate gives you a general idea of your monthly costs. It does not include other potential homeownership expenses like insurance, strata fees, or maintenance. For a complete financial picture, consider speaking with a mortgage advisor or lender