MD Banking Referral Service Calculators

Mortgage comparison calculator

Mortgage Compare (Canadian)

Determining which mortgage provides you with the best value is more than simply comparing monthly payments. Use this calculator to sort through the monthly payments, fees and other costs associated with getting a new mortgage. By comparing these important variables side by side, this calculator can help you pick the mortgage that works best for you.

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Definitions

Mortgage amount
The total amount for this mortgage.

Interest rate
The interest rate on this mortgage.

Mortgage amortization
The number of years over which you will repay this mortgage. The most common amortization for mortgages are 20 years and 25 years.

Fees
Any fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.

Mortgage payment
Monthly principal and interest payment using semi-annual compounding.

Equivalent monthly payment
The sum of periodic payments for a year divided by 12 months.

Accelerated weekly and bi-weekly payments
Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. We calculate an accelerated weekly payment, for example, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands in interest and take years off of your mortgage.

The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Just like the accelerated weekly payments you are in effect paying an additional monthly payment per year.

Annual percentage rate (APR)
A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different amortizations. All mortgages calculated with this calculator use semi-annual compounding, all APR calculations use annual compounding of interest.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.



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These calculators are made available to you as self-help tools for your independent use, and are not intended to provide financial advice. Calculation results are approximations, and are for informational purposes only. Calculations assume that the interest rate remains constant over the entire amortization period, but actual interest rates may vary over the amortization period depending on the mortgage type. Interest is compounded semi-annually, not in advance.


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Meet with your MD advisor to incorporate borrowing advice and home financing solutions into your integrated wealth management strategy.

1Banking products are provided by National Bank of Canada's Partnership Branch through a relationship with MD Management Limited.