Vancouver mortgage payment calculator
How much can you afford?
If you’re looking to buy in Vancouver’s fast-paced, pricey real estate market, it’s important to know how much home you can afford.
Interest rates are at historic lows, but prices are also at all-time highs.
Use the mortgage calculator below, designed for B.C. and Vancouver homebuyers, to help determine your monthly mortgage costs.
Things to keep in mind:
- Housing costs should not exceed more than 32% of your gross (pre-tax) monthly income. This includes your monthly mortgage payments, property taxes and heating expenses. If you are planning to buy a condo or townhouse, strata and maintenance fees also need to be considered.
- Your entire debt load should not exceed more than 40% of your gross monthly income. This includes debts such as car loans, student loan repayments, credit card payments or line of credit repayments.
Refers to the length of time you choose to pay off your mortgage. Typically, mortgages are paid off over the course of 25 years, but they can be as short as 15 years. The longer the amortization, the smaller the monthly payments, however, the interest costs are higher as well. Lump sum payments can help reduce interest costs. A great idea to consider is using your tax refund as a lump sum payment on your mortgage.
You can choose to repay your mortgage every month, every two weeks or weekly. You can also choose to accelerate your payments which can help you pay down your mortgage quicker.
Accelerated payments usually only mean making one extra monthly payment per year, but can take years off the time it takes to pay off your mortgage.
Interest rate types
You will have to choose between fixed, variable or protected variable (capped) rates. A fixed rate will not change for the term of the mortgage, usually five years. It provides peace of mind knowing that payments will not change over the course of the mortgage, regardless of whether or not interest rates go up.
Variable rates change with the market. They don’t change the overall amount of your mortgage payment, but rather, change the portion of your monthly payment that goes towards interest costs or paying down the principal.
A protected (or capped) variable rate is a mortgage with a variable interest rate that has a maximum rate determined in advance. Even if the market interest rate goes above the determined maximum rate, you will only have to pay up to that maximum.
The CMHC has more helpful tips here.