Select Real Estate Group has teamed up with rates-comparison site RateHub to provide a calculator that will show you how your monthly mortgage payments will change with rising interest rates. Please refer to the user guidelines below.
HOW IT WORKS:
To use this calculator you need to know your current interest rate, amortization period, mortgage payment amount and payment frequency.
Amortization period — this is the length of time it will take you to pay off your mortgage in full. In Canada, most mortgages have a 25-year amortization. This is different from your mortgage term, the length of time you commit to a specific rate, lender and loan conditions. The typical mortgage term in Canada is 5 years.
Payment frequency — most people pay their mortgage once a month. “Semi-monthly” means you pay twice a month, for a total of 24 yearly payments. “Bi-weekly” means you pay every two weeks, for a total of 26 payments a year. “Accelerated bi-weekly” means you pay the same amount you’d be paying with a semi-monthly option but make 26 rather than 24 payments per year, which allows you to pay down your mortgage faster and save on interest.
