Congratulations on making the decision to purchase a home. There are a lot of benefits to homeownership such as more privacy, it’s a great financial investment, there are some initial tax benefits, more creative freedom, and home equity. Making sure you have the appropriate amount of finances so you can afford a house and start reaping these benefits of home ownership is the first step of the loan approval process.
Reviewing your finances and using a mortgage calculator is a convenient way to stay on top of your expenses and help you become more organised. So, to help you get started, your local Grande Prairie mortgage broker, Gert Martens with Dominion Lending Centres, has listed the usefulness and importance of mortgage calculators.
A mortgage calculator is a useful tool where you can find out what type of mortgage payments you will have depending on the type of home you are looking for. With this device, you can manually type in the sale price of the home you want, the down payment percentage you are thinking about paying, the length of the mortgage you are interested in, and the annual percentage interest rate.
Once you input all this information, multiple different factors are calculated. The calculator will provide information on how much you would owe if you were to make a 10% down payment on a $150,000. It is important to note, however, that if you pay below 20% on your down payment in Canada, you will be required to obtain mortgage default insurance.
Your mortgage calculator will also tell you what the amount that would need to be financed is, your monthly payment with principal and interest as well as what your monthly payment would be if you had to pay mortgage default insurance on top of your Grande Prairie home loan payments.
Regardless if you are a first-time home buyer or are refinancing your home, a mortgage calculator is free to use and can help you see what your affordability is before you begin the application process. Please click HERE to try out our mortgage calculator today!
For more information on mortgage calculators or to get started on your application for a Grande Prairie home loan, please contact Gert Martens at 780-933-0109.