15 Sep

Mortgage Payment Frequency

General

Posted by: Eileen Craig

Payment Frequency

One of the decisions you will need to make before your new mortgage is set up, is what kind of payment frequency you would like to have. For many, sticking to a monthly payment is the default, however, different frequencies may end up saving you less interest over time.

Monthly Payments

Monthly payments are exactly as they sound, one payment every month until the maturity date of you mortgage at the end of your term. Took a 3-year term? You will make 36 payments (12 payments a year) and then you will need to renegotiate your interest rate. 5-year term? You will make 60 payments.

$500,000 mortgage

3% interest rate

5-year term

$2,366.23 monthly payment

 

$427,372.90 remaining over 20 years

$69,346.70 paid to interest

$72,627.01 paid to principal

 

Semi Monthly

Semi-monthly is not bi-weekly. Semi monthly is your monthly payment divided by two. That means, you are making 24 payments every year, but each payment is slightly less than half of what the monthly payment would of been.

$500,000 mortgage

3% interest rate

5-year term

$1,182.38 semi monthly payment

 

$427,372.99 remaining over 20 years

$69,258.59 paid to interest

$72,627.01 paid to principal

 

Bi-Weekly

Bi-weekly, you are not making 2 payments every month. With 52 weeks in a year, you are actually making 26 payments, 2 more than semi-monthly (2 months a year you make 3 bi-weekly payments). The interest paid and balance owing are slightly less than the others, but mere cents. You will still need to make payments for another 20 years.

$500,000 mortgage

3% interest rate

5-year term

$1,091.38 bi-weekly payment

 

$427,372.36 remaining over 20 years

$69,251.76 paid to interest

$72,627.64 paid to principal

 

Accelerated Bi-Weekly

Just like regular bi-weekly, you are not making 2 payments every month. With 52 weeks in a year, you are actually making 26 payments, 2 more than semi-monthly. However because this is accelerated, the payment amount is higher.

$500,000 mortgage

3% interest rate

5-year term

$1,183.11 accelerated bi-weekly payment

 

$414,521.40 remaining over 17 years 4 months

$68,325.70 paid to interest

$85,478.60 paid to principal

 

You have increased your yearly payment amount by $2,384.98, $11,924.90 over 5-years. That extra $11,924.90 has decreased your outstanding balance at the end of your mortgage term by $12,850.96 because more of your payments went to principal and less went to interest. Also, you will now have your mortgage paid off more than 2.5 years earlier.

The same option is available for accelerated weekly payments which will shave another month off of time required to pay back the whole loan as well. If you can afford to go accelerated, your best option is to do so! Especially in the early years where a larger portion of your payments are going towards interest, not paying down your principal.

If you have any more questions, please do not hesitate to reach out to a Dominion Lending Centres mortgage professional near you.

Ryan Oake
Dominion Lending Centres – Accredited Mortgage Professional
24 May

Important Mortgage Information for US Investors

General

Posted by: Eileen Craig

Did you know that US investors can get mortgages in Canada with as little as 20% down?

With so many US investors taking an interest in Whistler these days, I figured a US mortgage application cheat sheet might come in handy. Here’s the scoop:


 

Important mortgage information for US investors

 

 

 

 

 

 

 

Download the US Investor Cheat Sheet PDF here:  EC_-_US_Mortgage_Cheat_Sheet_060216.pdf

Any questions or need a pre-approval?  Call me!

Eileen


_______________________________________________________________________________________

Eileen Craig, Independent Mortgage Professional

DLC and Sea to Sky Mortgages
7003 Nesters Road, Whistler, BC, V0N 1B7
Direct: 604-698-8583  

Eileen@seatoskymortgages.com

 
facebook.com/EileenCraigMortgageBroker
linkedin.com/in/EileenKCraig

 

​Review me at:  Google+/Eileen Craig​

​Apply online: eileencraig.ca/how-to-apply-mortgage​

 

24 May

Minimum Down Payment Cheat Sheet

General

Posted by: Eileen Craig

In February 2016 new mortgage rules came into effect the changed the minimum down payments required for mortages based on home values.  

The new rules require a minimum of 5% down for the first $500,000 and 10% down on the portion above $500,000 to a maximum of $1,000,000.  

Here’s a handy-dandy cheat sheet for calculating down payments under the new CMHC rule:

 

Minimum Down Payment Calculator

 

Click here to download the cheatsheet PDF:  EC_-_MinPaymentCalculator.pdf

Any questions?  Please give me a call!

Eileen Craig

 

_________________________________________________________________________________________________________

Eileen Craig, Independent Mortgage Professional
DLC and Sea to Sky Mortgages
7003 Nesters Road, Whistler, BC, V0N 1B7
Direct: 604-698-8583  

eileen@seatoskymortgages.com

 
facebook.com/EileenCraigMortgageBroker 
linkedin.com/in/EileenKCraig

 

​Review me at:  Google+/Eileen Craig​

​Apply online: eileencraig.ca/how-to-apply-mortgage​