Save Money with the Right Mortgage Calculator for Kitchener

If you have a mortgage or are thinking about getting one, you owe it to yourself to check out the best mortgage calculator Kitchener has available. The Bank of Canada has given clear signs that it plans on increasing interest rates on an ongoing basis. This can have a profound impact on how much money you have to pay in order to service your mortgage.

Not All Mortgage Calculator’s are Created Equal

There is a general misconception that all mortgage calculators work the same way. Since, you are looking for a mortgage in the Kitchener area, the calculator needs to take into consideration the entire amortization of the mortgage.

In the U.S.A. a 30 year fixed rate mortgage would be amortized over 30 years. This means is you would pay the exact same amount and at the end of 30 years, the mortgage would be paid in full. In Canada, the mortgage could be amortized over 30 years but has a 5 year term. This means that at the end of 5 years, you would need to renegotiate the interest rates. The risk is that the rates could be considerably higher than what you are paying right now.

Beware Teaser Interest Rates

Something that you should be aware of when using a mortgage calculator for Kitchener real estate. The interest rates being used in the calculations may not be accurate. What some lenders do is offer a reduced rate or “teaser rate” which is used to catch your attention. Typically what happens is the teaser rate is only for a few months or years and the mortgage would then revert back to prevailing market rates.

Additional Considerations to Factor in When Using a Mortgage Calculator

While the mortgage calculator will be useful when trying to determine your monthly payment, there is also a need to look at the cost to maintain the property. Insurance, repairs, and renovations are costs that the calculator does not factor in. It would be prudent to build a buffer so your budget. This way your budget is not stretched to the max servicing the mortgage. Build yourself a buffer and that way you ensure you have some money put aside to enjoy the home.