How to save on your mortgage payments?
1. Compare interest rates offered by lenders for the kind of mortgage you wish to get.
2. Choose the shortest mortgage life you can afford.
3. Pay your mortgage on time.
4. Increase your down payment at least up to 20% to reduce your home loan and avoid paying for the mortgage default insurance.
5. Request for the cancellation of mortgage default insurance once you’ve paid a certain balance of the loan.
6. Increase your credit score to get more favourable mortgage terms.
Which mortgage payment frequency should you choose?
It all depends on your capability to pay for the mortgage. In general, it’s advisable to choose the shortest mortgage life you can afford since it can potentially reduce your full interest on the loan. However, the shorter the life of the loan, the higher the monthly interest payment may be. If you want to take advantage of lower monthly repayments during the first few years, you can apply for a variable mortgage (if you think the interest will go down further in the succeeding years) or choose a product that will allow you to reduce the life of your mortgage later (say, from 25 years to 15 years).
How to understand your mortgage amortization schedule?
A mortgage amortization schedule is provided by the lender such as the bank to help you keep track of your mortgage balance by showing the payments you’ve made. In the schedule, you will see the following fields:
• Date of payment
• Monthly principal
• Interest rate per month
• Breakdown of the mortgage payment, which is divided into principal and interest
• Running balance of the mortgage, which is obtained by subtracting the total home loan from the principal payment
Find out how much interest you can save on your mortgage.
If you are thinking of obtaining a mortgage, whether you are looking for a new mortgage, refinancing or renewing your mortgage, our mortgage payment calculator will assist you in determining mortgage payments and also how much interest can potentially save. Wondering how much house you can afford, enter the information below and then slide the property price, it will automatically calculate the totals for you. Quickly see how much interest you will pay, and your principal and balance. Check out the 3 side by side comparison scenarios which allows you to compare various options so you can make an informed decision.
Our Mortgage Payment calculator will generate an amortization schedule for your current mortgage. A shorter amortization period will let you pay off your mortgage quicker and save money. Choose 2 or 3 amortization periods to compare the savings and see what your mortgage payment will be.
With our CompareMyRates.ca calculator, you will see how much you will pay on your mortgage by changing the frequency. Changing from regular bi-weekly or weekly to accelerated bi-weekly or accelerated weekly payments can save money over the life of your mortgage. When you select an accelerated weekly or bi-weekly payment option, you are essentially making the equivalent of one additional monthly payment each year which will help pay off your mortgage faster. Use our Mortgage Payment Calculator to find out how much you can potentially save if you accelerate your payments.