Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How is my monthly mortgage payment calculated?

Your monthly mortgage payment is calculated from the loan amount, the interest rate and the amortization period, using a formula that spreads principal and interest over the number of scheduled payments, per CMHC and standard Canadian lender practice used across Saskatoon mortgage files.

The detail that trips up a lot of buyers is compounding. Canadian mortgages compound semi annually rather than monthly, unlike the monthly compounding a foreign calculator assumes, so lenders here apply the correct Canadian formula automatically rather than the simpler one.

If your down payment is under 20 percent, the CMHC, Sagen or Canada Guaranty insurance premium gets added to the principal before the payment is calculated, so the number you see already includes it rather than showing it as a separate line.

Property tax and, on a condominium, part of the monthly fee are often layered on top of the mortgage payment itself in a lender's overall affordability figure. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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