Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Are you interested in learning about the mortgage pre-approval process? Or, do you want to learn how to improve your credit score? One of the biggest steps you’ll take in life is buying a home. And, while you might want to go and pick out your dream home first, this is a mistake. You need to get .... More »
A significant number of Canadian households reported being late on a debt payment or missing it entirely, according to a new report from Statistics Canada. The 2016 data from the agency’s Survey of Financial Security shows that more than 1-in-10 Canadians (11%) with some form of debt reported skip.... More »
The head of the Canada Mortgage and Housing Corporation (CMHC) gave a candid assessment of the country’s housing market, saying the “party” of homeownership as a sole savings vehicle will come to an end. Evan Siddall made the comments during an interview with BNN Bloomberg’s Aman.... More »
The big news of the week was the Federal Reserve’s interest rate cut, the first one since the financial crisis more than 10 years ago. Despite a strong domestic economy, Federal Reserve Chairman Jerome Powell said the cut was a pre-emptive move to brace against “downside risks.” .... More »
The Canadian Real Estate Association (CREA) largely blames tighter mortgage lending rules for the slow housing market in March. Sales dropped 4.6% year-over-year to levels not seen since 2013. Sales were 12% below the 10-year average for March, and 20% below the average for British Columbia, Alberta and Saskatchewan. But there was a glimmer of […]
Looking at mortgage rates for a new house? Need a mortgage calculator? Canada residents know it’s easy to fall in love with your dream home. But, it helps to factor in the mortgage loan amount and interest rate beforehand. You want to determine how much house you can afford - preferably before you call the movers!
Use these steps to walk-through how to use a mortgage calculator. You can find a mortgage that’s affordable (and, then tell the kids to go pack their toys).
When to Use a Mortgage Payment Calculator
A mortgage payment calculator can help determine your monthly mortgage payment. The payment is based on interest and principal (the mortgage).
To use a mortgage payment calculator, you need:
The mortgage loan amount: If the home costs $50,000, and you put down 20 percent, or $10,000, the loan balance is $40,000.
The payment type: Do you want monthly or bi-weekly payments?
The loan term: Typically loan terms (amortization) are 30-years unless you select a shorter term…
Every once in a while you may get a notice from your bank. Your account’s monthly fees are going up. It may be a modest difference, of a dollar or so. You may write it off as the cost of doing business with your financial institution.
But right now, that fee hike may be a symptom of a broader economic phenomenon. It affects almost everything about your money, from how much you may pay for a mortgage to how much return you get on your savings.
What is it? The yield curve, which in Canada is teetering between flat and inverted. An inverted yield curve is uncommon, and it has ripple effects throughout the financial industry.
What is the Yield Curve?
The yield curve shows the relationship between expected returns on short-term versus long-term fixed income instruments. We’re talking here about how much banks make on the purchase of government treasury bonds.
When things are normal, the curve plots upwards. Typically, longer term vehicles bring in a greater return…