Canadian Mortgage Calculator is an online personal finance assessment tool to calculate how much total interest cost, monthly and total repayment along with the amortization schedule you have to repay for your mortgage. Loan amount, interest rate and the maturity period are the key terms to calculate the future payments for the principal about to be borrowed. The Canadian mortgage calculator follows the law of Canadian standards for mortgage payment and which is compounded every 6 months except variable interest mortgages.
Canadian Mortgage is a legal agreement by which a bank or similar organization lends you money to buy a house and you pay the money back over a particular number of years. Except variable interest rate mortgages Canadian mortgages are different from other traditional mortgages because of the interest rates compounded semi-annually by law. For example, the 8% of annual interest rate, then the effective interest rate will be 8.16% due to compounding it for every 6 months once. In the context of mortgage calculation Canadian mortgage is bit confusing. Therefore calculating the effective interest rate carefully will gives you a clear picture on interest component. So when it comes to online calculation, Canadian mortgage calculator will let you compare the future payments with the other lenders may assist you to take a better decision on your mortgage selection. The amortization schedule along with the repayment calculation depicts how your monthly repayments decrease your both principal and interest over the period of time.