Canadian mortgage affordability calculator

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Mortgage is one of best options to look forward to when it comes to buying property in Canada. To help you out here we gave best, easiest way to calculate mortgage online. It is easy because you enter only few details so that you know the answer. This mortgage affordability calculator is a tool that checks as to what will be effects of mortgage on you.

Use of mortgage affordability calculator

When you use mortgage calculator you know whether you can buy a home or other real estate projects. Apart from this you have idea of how much you should borrow to purchase your property. You get to know as to what will be monthly payments towards the amount you borrowed, amount of interest and similar things.

Canadian mortgage affordability calculator

Using online Canadian mortgage affordability calculator is better option before you go to the bank to check details of the loan. It is so because when you use affordability calculator you crack the truth behind your financial position and whether or how much money can you borrow from the bank.

In this way you compare results before you go to the bank and before you finally check details of mortgage based on various factors that banks come up with. In other words you find as to how much amount you are able to afford when it comes to spending on your mortgage.

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Why should I use affordability calculator?

It is not mandatory for you to use this affordability calculator but it will be an added advantage when you use this calculator. And there are many reasons for saying so. Firstly you may have an estimate on your home price and if you are financially stable to purchase that home of yours or not.

Second all you have to do is enter a couple of details and bang, you have the answer on your computer or phone or tablet screen. However you see to it that you enter correct details because if one field or detail is wrong then it may affect rest of the things in the calculator. Now you keep reading this page to know about steps to use Canadian mortgage affordability calculator.

How to use Canadian mortgage affordability calculator

  • You enter your monthly income
  • You specify monthly home expenses
  • Next you enter other expenses
  • Fourth you mention down payment
  • You also indicate rate of interest

When you enter these details you know purchase price, down payment amount, mortgage principal, mortgage monthly payment. In simple manner you know use of this mortgage affordability calculator. You even know mathematical formula to calculate affordability mortgage in Canada.

Formula to calculate affordability mortgage in Canada

\(M = P.\frac{r (1+r)^{{n}}}{ (1+r)^{{n}}-1}\)

Here P = principal amount, M = mortgage, r = rate of interest and n = duration or number of years.

Know how to use Canadian mortgage calculator.