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home > commercial mortgages > rates > articles > payments > Canadian mortgage formula Canadian commercial mortgage loan payment formulaThis is the Canadian commercial mortgage payment formula. Use it to calculate what your monthly Canadian commercial mortgage payments will be. To be perfectly honest with you it's a little bit complicated. And in order to use it you'll need a paper, a pencil and a hand held calculator that has an 'exponent' button on it that usually looks like the following picture: And the hand held calculator you use has to be accurate. To test to see if your calculator is accurate enough, type into it the number "0.05" then divide it by the number "2." If your answer is "0.025" your calculator is accurate enough. But, if your answer is "0.03" your calculator isn't accurate enough (cause it's rounding off numbers too soon). One more point: you'll be using a lot of decimal numbers (like: 0.0042398729), and you'll need to write down all the numbers after the decimal point that you see on your calculator screen. Use this Canadian commercial mortgage payment formula, by following fourteen steps  starting with step one. Pssst! You can also use the commercial mortgage payment calculators to calculate your commercial mortgage payments. Canadian commercial mortgage payment formula: Step oneThe first step of using this Canadian commercial mortgage payment formula, is to choose your mortgage principal. On your piece of paper, write "step one answer = [answer goes here]." A mortgage principal is the amount of money you want to borrow to get your commercial mortgage. So for example, if you want to borrow $100, 000 for your commercial mortgage, then you would write down: "step one answer = 100000." Move on to step two. Canadian commercial mortgage payment formula: Step twoThe second step of using this Canadian commercial mortgage payment formula, is to choose your mortgage amortization length. You can choose anywhere from a 5 year mortgage amortization length to a 25 year mortgage amortization length. Note: If you want to choose an amortization length in half years, you'll need to use the number "0.5." So for example, if you want to choose a 5 1/2 year amortization length, you'll need to use the number "5.5". On your piece of paper, write "step two answer = [answer goes here]." Mortgage amortization is the length of time you want to take to completely pay off your commercial mortgage. So for example, if you want to have a commercial mortgage for 25 years, then you would write down: "step two answer = 25." Move on to step three. Canadian commercial mortgage payment formula: Step threeThe third step of using this Canadian commercial mortgage payment formula, is to choose your mortgage rate. You have to choose a rate that you predict or hope you'll get for your commercial mortgage. Why? Cause there's never "set" mortgage rates for commercial mortgages: they're always different depending on your particular situation (your property type, how much you borrow etc.) On your piece of paper, write "step three answer = [answer goes here]." What's a mortgage rate? It's the percentage of interest you'll be charged on your principal (the amount of money you borrowed) by your lender for borrowing money from them. So for example, if you choose a commercial mortgage rate of 5%, then you would write down: "step three answer = 5." Move on to step four. Canadian commercial mortgage payment formula: Step fourThe fourth step of using this Canadian commercial mortgage payment formula, is to divide your step three answer by the number "100." On your piece of paper, write: step four answer = step three answer / 100 So for example, if your answer in step three was "5" then you would write: step four answer = 5 / 100 Move on to step five. Canadian commercial mortgage payment formula: Step fiveThe fifth step of using this Canadian commercial mortgage payment formula, is to take your answer from step two and times it by the number "12." On your piece of paper, write: step five answer = step two answer x 12 So for example, if your answer in step two was "5" then you would write: step five answer = 5 x 12 Move on to step six. Canadian commercial mortgage payment formula: Step sixThe sixth step of using this Canadian commercial mortgage payment formula, is to take your answer from step four and divide it by the number "2." On your piece of paper, write: step six answer = step four answer / 2 So for example, if your answer in step four was "0.05" then you would write: step six answer = 0.05 / 2 Move on to step seven. Canadian commercial mortgage payment formula: Step sevenThe seventh step of using this Canadian commercial mortgage payment formula, is to take your answer from step six and add it to the number "1." On your piece of paper, write: step seven answer = step six answer + 1 So for example, if your answer in step six was "0.025" then you would write: step seven answer = 0.025 + 1 Move on to step eight. Canadian commercial mortgage payment formula: Step eightThe eighth step of using this Canadian commercial mortgage payment formula, is to take your answer from step seven and raise it to the exponent "0.166666666 To do this, type your step seven answer into your calculator. Then, press the 'exponent' button on your calculator which usually looks like the following picture: Then, type in the number: 0.166666666 and press the 'equal' sign (=). On your piece of paper, write: step eight answer = step seven answer 'to the exponent' 0.166666666 So for example, if your answer in step seven was "1.025" then you would write: step eight answer = 1.025 'to the exponent' 0.166666666 Pssst! Notice how many numbers after the decimal have to be used....it's important to write them all down! Move on to step nine. Canadian commercial mortgage payment formula: Step nineThe ninth step of using this Canadian commercial mortgage payment formula, is to take your answer from step eight and subtract the number "1." On your piece of paper, write: step nine answer = step eight answer  1 So for example, if your answer in step eight was "1.004123915" then you would write: step nine answer = 1.004123915  1 Move on to step ten. Canadian commercial mortgage payment formula: Step tenThe tenth step of using this Canadian commercial mortgage payment formula, is to take your answer from step nine and add the number "1." On your piece of paper, write: step ten answer = step nine answer + 1 So for example, if your answer in step nine was "0.004123915" then you would write: step ten answer = 0.004123915 + 1 Move on to step eleven. Canadian commercial mortgage payment formula: Step elevenThe eleventh step of using this Canadian commercial mortgage payment formula, is to take your answer from step ten and raise it to the exponent of the number you got in step five. To do this, type your step ten answer into your calculator. Then, press the 'exponent' button on your calculator which usually looks like the following picture: Then, type in the number you got in step five, and press the 'equal' sign (=). On your piece of paper, write: step eleven answer = step ten answer 'to the exponent' step five answer So for example, if your answer in step ten was "1.004123915" and your answer in step five was "60" then you would write: step eleven answer = 1.004123915 'to the exponent' 60 Pssst! Notice how many numbers after the decimal have to be usedf..it's important to write them all down! Move on to step twelve. Canadian commercial mortgage payment formula: Step twelveThe twelfth step of using this Canadian commercial mortgage payment formula, is to take your answer from step one, and times it by your answer in step nine, and then times that answer by your answer in step eleven. On your piece of paper, write: step twelve answer = step one answer x step nine answer x step eleven answer So for example, if your answer in step one was 100,000, and your answer in step nine was 0.004123915, and your answer in step eleven was 1.280084531 then you would write: step twelve answer = 100000 x 0.004123915 x 1.280084531 Move on to step thirteen. Canadian commercial mortgage payment formula: Step thirteenThe thirteenth step of using this Canadian commercial mortgage payment formula, is to take your answer from step eleven and subtract the number "1." On your piece of paper, write: step thirteen answer = step eleven answer  1 So for example, if your answer in step eleven was 1.280084531 then you would write: step thirteen answer = 1.280084531  1 Move on to step fourteen. Canadian commercial mortgage payment formula: Step fourteenThe fourteenth step of using this Canadian commercial mortgage payment formula, is to take your answer from step twelve and divide it by your answer from step thirteen. The answer to this step will be the amount your monthly commercial mortgage payments could be. On your piece of paper, write: step fourteen answer = step twelve answer / step thirteen answer So for example, if your answer in step twelve was 527.8959798 and your answer in step thirteen was 0.280084531then you would write: step fourteen answer = 527.8959798 / 0.280084531 Get a commercial mortgage today! Fill out the commercial mortgage application. If you have questions about this Canadian commercial mortgage payment formula, simply contact The Mortgage Store Online's brokers by using the contact form by calling them at 18666740548. << return to commercial mortgage payments 

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