For those of you in our Collingwood, Blue Mountains, Wasaga Beach, Clearview, Meaford or Grey Highlands areas who are thinking about mortgages…did you know that Canadian mortgages are calculated semi-annually, not in advance, and therefore you cannot do a straight interest calculation to come up with an accurate mortgage payment.
Here’s An Example:
If you wish to calculate a 5 year mortgage, amortized over 25 years at current rates – say 3.19%, the multiplier is $4.83 per thousand dollars of mortgage.
So a $100,000 mortgage with a 5 year term, amortized over 25 years will cost approximately $483.00 per month. ($100 x $4.83)
Similarly, a $200,000 mortgage with the above terms/amortization would result in a monthly payment of approximately $966.00 per month. ($200 x $4.83)