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Canadian home loan mortgage payment formula

This is the Canadian home mortgage payment formula. Use it to calculate what your monthly, bi-weekly or weekly Canadian home mortgage payments will be.

To be perfectly honest with you, this formula is a little bit complicated. And in order to use it you'll need 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 on your calculator screen.

Use this Canadian home mortgage payment formula, by following fifteen steps - starting with step one.

Pssst! You can also use the home mortgage payment calculators to calculate your home mortgage payments.

Canadian home mortgage payment formula: Step one

The first step of using this Canadian home 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 home mortgage. So for example, if you want to borrow $100,000 for your home mortgage, then you would write down: "step one answer = 100000."

Move on to step two.

Canadian home mortgage payment formula: Step two

The second step of using this Canadian home 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 home mortgage. So for example, if you want to have a home mortgage for 25 years, then you would write down: "step two answer = 25."

Move on to step three.

Canadian home mortgage payment formula: Step three

The third step of using this Canadian home mortgage payment formula, is to choose your mortgage rate.

On your piece of paper, write "step three answer = [answer goes here]."

A mortgage rate is 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 home mortgage rate of 5%, then you would write down: "step three answer = 5."

If you're getting a home mortgage, choose your rate from the list of the current mortgage rates below.

Or, if you're getting a multi-residential mortgage (a mortgage for a property that has more than one living unit like duplexes or apartment buildings), you'll have to choose a rate that you predict or hope you'll get for your multi-residential mortgage. Why? Cause there's never "set" mortgage rates for multi-residential mortgages: they're always different depending on your particular situation (your property type, how much you borrow etc.)

Current Mortgage Rates:

List rates however they are on the current rates page.A TABLE HERE I THINK.

Just so you know: these current mortgage rates are available from The Mortgage Store Online's "institutional lenders" (like banks and trust companies).

Move on to step four.

Canadian home mortgage payment formula: Step four

The fourth step of using this Canadian home 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
step four answer = [your calculated answer goes here]

So for example, if your answer in step three was "5" then you would write:

step four answer = 5 / 100
step four answer = 0.05

Move on to step five.

Canadian home mortgage payment formula: Step five

The fifth step of using this Canadian home 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
step five answer = [your calculated answer goes here]

So for example, if your answer in step two was "5" then you would write:

step five answer = 5 x 12
step five answer = 60

Move on to step six.

Canadian home mortgage payment formula: Step six

The sixth step of using this Canadian home 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
step six answer = [your calculated answer goes here]

So for example, if your answer in step four was "0.05" then you would write:

step six answer = 0.05 / 2
step six answer = 0.025

Move on to step seven.

Canadian home mortgage payment formula: Step seven

The seventh step of using this Canadian home 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
step seven answer = [your calculated answer goes here]

So for example, if your answer in step six was "0.025" then you would write:

step seven answer = 0.025 + 1
step seven answer = 1.025

Move on to step eight.

Canadian home mortgage payment formula: Step eight

The eighth step of using this Canadian home 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
step eight answer = [your calculated answer goes here]

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
step eight answer = 1.004123915

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 home mortgage payment formula: Step nine

The ninth step of using this Canadian home 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
step nine answer = [your calculated answer goes here]

So for example, if your answer in step eight was "1.004123915" then you would write:

step nine answer = 1.004123915 - 1
step nine answer = 0.004123915

Move on to step ten.

Canadian home mortgage payment formula: Step ten

The tenth step of using this Canadian home 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
step ten answer = [your calculated answer goes here]

So for example, if your answer in step nine was "0.004123915" then you would write:

step ten answer = 0.004123915 + 1
step ten answer = 1.004123915

Move on to step eleven.

Canadian home mortgage payment formula: Step eleven

The eleventh step of using this Canadian home 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
step eleven answer = [your calculated answer goes here]

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
step eleven answer = 1.280084531

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 home mortgage payment formula: Step twelve

The twelfth step of using this Canadian home 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
step twelve answer = [your calculated answer goes here]

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
step twelve answer = 527.8959798

Move on to step thirteen.

Canadian home mortgage payment formula: Step thirteen

The thirteenth step of using this Canadian home 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
step thirteen answer = [your calculated answer goes here]

So for example, if your answer in step eleven was 1.280084531 then you would write:

step thirteen answer = 1.280084531 - 1
step thirteen answer = 0.280084531

Move on to step fourteen.

Canadian home mortgage payment formula: Step fourteen

The fourteenth step of using this Canadian home 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 home mortgage payments could be.

On your piece of paper, write:

step fourteen answer = step twelve answer / step thirteen answer
step fourteen answer = [your calculated answer goes here]

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
step fourteen answer = $ 1,884.77 monthly

To calculate what your bi-weekly and/or weekly home mortgage payments would be, move on to step fifteen.

Canadian home mortgage payment formula: Step fifteen

The fifteenth step of using this Canadian home mortgage payment formula, is to take your answer from step fourteen and use it to calculate your bi-weekly and weekly home mortgage payments.

  • To calculate your bi-weekly accelerated home mortgage payments, divide your answer from step fourteen by the number "2." View an example.
  • To calculate your bi-weekly normal/non-accelerated home mortgage payments, times your answer from step fourteen by the number "12." Then, divide that answer by the number "26." View an example.
  • To calculate your weekly accelerated home mortgage payments, divide your answer from step fourteen by the number "4." View an example.
  • To calculate your weekly normal/non-accelerated home mortgage payments, times your answer from step fourteen by the number "12." Then, divide that answer by the number "52." View an example.

Get a home mortgage today! Fill out the home mortgage application.

If you have questions about this Canadian home mortgage formula, then contact The Mortgage Store Online's brokers by using the contact form or by calling them at 1-866-880-2577.

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