You will need to make regular mortgage payments when you take a loan to purchase a property until it is paid off. The following four things will impact the amount of your mortgage payment:
- Mortgage Amount – To calculate your mortgage amount, simply subtract your down payment from the purchase price of your home. You will have a larger mortgage amount if you purchase an expensive home or you make a smaller down payment and, therefore, your monthly, bi-weekly, or weekly payments will be larger.
You will also have to pay CMHC insurance if you make a down payment of less than 20 percent, and this is added to your total mortgage amount.
- Mortgage Rate – Your mortgage payment will be higher if you have a high-interest rate. Click here for the lowest mortgage rates available in your province.
- Amortization Period – Your mortgage payments will be lower if you have a long amortization period. On the other hand, you will pay more interest on a mortgage with a longer amortization period.
- Payment Frequency – The payment frequency you opt for will affect the amount of each installment and how many payments you will make per year.