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Century
21 Associates
Proudly Canadian
CENTURY
21
sells a Home
every minute
WORLDWIDE
Over 6,300 Offices
INTERNATIONAL
1-888-279-2188
LOCAL
(905)
279-8888
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We have access to hundreds of lenders through our computerized
financial services. Let us arrange your total financing
needs ....
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- Up to 1% discount
- 3% Cash Back
- No Payments for 3 months
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| ONLINE
MORTGAGE CALCULATORS
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Use up to $20,000 per person from your RRSP investments
towards the purchase of your home
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The
Cost of a Mortgage
Monthly Principal,
Interest per $1,000 of Mortgage |
Mortgage |
15 Year |
20 Year |
25 Year |
RATE |
Loan |
Loan |
Loan |
5.00 |
7.91 |
6.60 |
5.85 |
5.50 |
8.17 |
6.88 |
6.14 |
6.00 |
8.44 |
7.16 |
6.44 |
6.50 |
8.71 |
7.46 |
6.75 |
7.00 |
8.99 |
7.76 |
7.07 |
7.50 |
9.28 |
8.06 |
7.39 |
8.00 |
9.56 |
8.37 |
7.72 |
8.50 |
9.85 |
8.68 |
8.06 |
9.00 |
10.15 |
9.00 |
8.40 |
9.50 |
10.45 |
9.33 |
8.74 |
10.00 |
10.75 |
9.66 |
9.09 |
10.50 |
11.06 |
9.99 |
9.45 |
11.00 |
11.37 |
10.33 |
9.81 |
11.50 |
11.69 |
10.67 |
10.17 |
12.00 |
12.01 |
11.02 |
10.54 |
12.50 |
12.33 |
11.37 |
10.91 |
13.00 |
12.66 |
11.72 |
11.28 |
Note: Multiply the cost per $1,000 by the size of the mortgage
(in thousands). The result is the monthly payment, including
principal and interest. For example, for an $80,000 mortgage
for 20 years at 6 percent, multiply 80 x 7.16 = 572.80. |
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This property
can be purchased with a down payment as low as: $4,475
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How |
DOWN PAYMENT |
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25% |
10%
Minimum |
5%
CMHC |
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Total |
Monthly |
Total |
Monthly |
Total |
Monthly |
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Down
Payment |
$22,375
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$8,950
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$4,475
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1st
Mortgage |
$67.125
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$80,550
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$85,025
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CMHC
Insurance |
N/A
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$2,014
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$2,126
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Total
Mortgage |
$67,125
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$82,564
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$87,151
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Mortgage
Payment (P&I) |
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$495
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$609
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$651
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Estimated
Property Taxes |
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$93
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$93
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$93
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Condominium
Fees (if applicable) |
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$361
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$361
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$361
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Total
Payment |
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$949
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$1,063
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$1,105
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Minimum
Annual House Income |
$31,000
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$36,000
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$34,000
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INFORMATION
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First
two mortgage examples assume a 3 year closed term at 7.600%,
25 year amortization.
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5%
CMHC program assumes a 5 year closed term at 7.750%, 25
year amortization.
Property must be purchased through or listed by Century
21 Associates Inc. to be eligible for a
Century 21 Mortgage.
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These
are examples only and are not pre-approvals or commitments
by LLMD.
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All
mortgagors must meet London Life Mortgage Division’s lending
criteria, (and CMHC/MICC criteria, if applicable).
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Interest
rates are subject to change without notice.
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5%
CMHC program is only available to first time buyers.
Customers must qualify at a minimum of the
3 year term.
Qualifications may differ from region to region.
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MORTGAGE TERMS &
DEFINITIONS
MORTGAGE:
A long-term loan primarily for the purpose of buying
a home. A mortgage is a legal agreement in which the borrower
pledges the property being purchased as security for the
loan.
PRINCIPAL:
The amount of the loan - the cash you actually borrow.
TERM:
The number of months or years the mortgage covers. Normally,
it will be anywhere from six months to five years.
AMORTIZATION:
The actual number of years it will take to repay the mortgage
in full. This is usually much longer than the term of the
mortgage.
EQUITY:
The difference between the amount for which the property
could be sold and the amount you still owe on the loan.
PRE-APPROVED MORTGAGE:
Preliminary approval is given by the lender of the borrower's
application for a mortgage to a certain maximum amount and
usually with a guaranteed rate for a set period of time.
CONVENTIONAL MORTGAGE:
A loan for no more than 75 per cent of the appraised value
or purchase price of the property, whichever is less.
HIGH RATIO MORTGAGE:
A mortgage usually for more than 75 per cent of the appraised
value or purchase price of the property. Such a mortgage
is often referred to as an NHA mortgage because it is granted
under the provisions of the National Housing Act. These
mortgages must, by law, be insured through the Canada Mortgage
and Housing Corporation (CMHC) or an approved private insurer.
FIRST MORTGAGE:
The debt registered against your property that has to be
paid first in the event of sale or default.
SECOND MORTGAGE:
A mortgage granted when there is already one other mortgage
registered against the property. If the borrower defaults
and the property is sold, the second mortgage is paid after
the first mortgage.
LEASEHOLD MORTGAGE:
A mortgage on a home and/or improvements where the land
is rented rather than owned.
COLLATERAL MORTGAGE:
A mortgage backed by a promissory note and the security
of a mortgage on real property. The money borrowed is usually
used for other purposes, such as home improvements, a vacation
or a business investment.
BRIDGE FINANCING:
A special, short-term loan needed to cover the time gap
between completing the purchase of a property as agreed
and finalizing arrangements to pay. This usually occurs
when two properties are involved and the closing dates do
not match.
FIXED RATE MORTGAGE:
A mortgage for which the rate of interest is set for a specific
period of time (the term of the mortgage). The regular payment
of the principal and interest remains the same throughout
the term.
VARIABLE RATE MORTGAGE:
A mortgage for which the rate of interest changes from time
to time as money market conditions change. The amount of
the regular payment of a variable rate mortgage does not
change. The difference lies in the way the payment is applied.
If interest rates go up, more of the regular payment will
be applied toward interest. If interest rates go down, more
of the regular payment will be applied toward the principal.
OPEN MORTGAGE:
A mortgage which allows the borrower to repay the loan more
quickly than agreed, usually with prepayment charges.
CLOSED MORTGAGE:
A mortgage that generally does not allow the borrower to
repay the loan more quickly than agreed.
PORTABLE MORTGAGES:
A mortgage where the principal balance, the term remaining
and the interest rate are transferred to a mortgage on your
new property.
BLENDED:
Occurs when you combine the mortgage balance outstanding
on the home you are leaving and adding additional financing
to purchase your new home. The interest rate will change
to one that combines the rate on your old mortgage with
the rate in effect at the time you add additional financing.
COMPOUND INTEREST:
Interest charged on interest owing. The more frequent the
compounding, the more interest will be paid.
BUYING DOWN:
A term used when quoting interest rates. It means that someone,
usually the vendor or seller, has arranged with the mortgage
lender to prepay a portion of the interest owing on the
mortgage. This allows you, the new borrower, to assume a
mortgage debt at an interest rate lower than the current
or stated rate.
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