Mortgage Calculator for Canada

Understanding Mortgage Calculator for Canada

Are you planning to buy a property? Then it is essential to know how much you will need to pay for your mortgage on a monthly basis.

The Mortgage Calculator for Canada helps you know your monthly repayments on a property, the total interest you will pay and the total repayment amount.

To calculate your monthly repayment you will need to input the purchase price, down payment, interest rate and amortization period.

Purchase Price

This is the asking price of the home you intend to buy. The higher the asking price the higher your monthly repayments are likely to be.

It is paramount to understand that most property sells for less than the asking price so you should try to negotiate the price down as much as you can.

Down Payment

The down payment is the amount needed to secure the property you intend to buy.

At times banks grant 100% home loans, it is, however, a rare occurrence, more often than not you will need at least 5% of the asking price as a down payment.

Paying a larger down payment will significantly reduce your monthly repayments.

Interest Rate

This is the rate at which the bank lends you the money to buy the property you intend to buy.

The rate which the bank charges you is based on a variety of factors. It has often proved to be a smart move to negotiate a lower rate.

A small reduction in the interest rate can amount to a large sum over the course of the mortgage.

Amortization Period

The amortization period is how long you choose to repay the bank for the property. Most new home loans are over 20 years but you can choose a shorter or longer term.

By choosing to pay off your mortgage over a shorter term you will pay less interest and save a significant amount of money.

If you select a longer-term, your monthly repayments will be lower but you will pay more in interest over the duration of the home loan.

What formulae mortgage calculator for Canada uses?

Are you a math fan. The mortgage payment calculation looks like this: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

The variables are as follows:

M = monthly mortgage payment
P = the purchase price
i = your monthly interest rate. Your lender likely lists interest rates as an annual figure, so you’ll need to divide by 12, for each month of the year. So, if your rate is 5%, then the monthly rate will look like this: 0.05/12 = 0.004167.
n = the number of payments over the life of the loan. If you take out a 30-year fixed-rate mortgage, this means n = 30 years x 12 months per year, or 360 payments.

Which Province did you use Mortgage calculator for Canada to Calculate? Here are some interesting facts about Mortgages in the country and in each province:

According to a government study:

  • 63% of Canadian families own their homes
  • 43% of Canadian homeowners had paid off the mortgage on their principal residence
  • Mortgage debt represented two-thirds of the overall increase in debt for Canadian families, while consumer debt made up the remainder
  • The median amount of mortgage debt among Canadian families with a mortgage almost doubled, from $91,900 to $180,000 in 2016 constant dollars
  • Almost three-quarters (74%) of Canadian families with a mortgage had a fixed mortgage rate, 21% had a variable mortgage rate, and 5% had a combination of a fixed and variable mortgage rate
Canada-homeownership-mortgage
Canada home ownership and mortgage debt statistics
Homeownership percentage by region
Region%
Newfoundland and Labrador74
Prince Edward Island 66.7
Nova Scotia63.9
New Brunswick70.8
Québec57
Montréal50.5
Quebec excluding the CMAs of Québec and Montréal63.9
Ottawa61.2
Toronto58.7
Ontario excluding the CMAs of Ottawa and Toronto70.1
Winnipeg63.4
Manitoba excluding the CMA of Winnipeg77.8
Regina62.9
Saskatoon61.4
Saskatchewan excluding the CMAs of Regina and Saskatoon74.1
Calgary67.5
Edmonton60.7
Alberta excluding the CMAs of Calgary and Edmonton69.4
Vancouver55.8
British Columbia excluding the CMA of Vancouver69.1
** Source: Insights on Canadian Society
Homeownership City Variances

This high level of homeownership should not come as a surprise. Canada has one of the highest homeownership levels in the developed world.

However, as you would notice in the above table, Big cities like Toronto and Vancouver have a low ownership percentage as compared to smaller cities.

This is largely a result of high housing prices. Therefore many resorts to getting reasonable mortgages in the smaller cities, leaving ownership in big cities to large real estate companies.

Homeownership Age Variances

There is a clear association between homeownership and age, largely because homeownership is a life cycle phenomenon.

Younger individuals aged less than 35 are less likely to own homes because many are still in school and others have recently graduated and are in the process of saving money for a down payment.

The homeownership rate is higher among middle-aged individuals (i.e., those aged 45 to 64); in 2016, homeownership was 71% among families whose major income earner was aged 45 to 54 and 78% among those aged 55 to 64.

*Disclaimer: Please note that by default this calculator uses the prime interest rate for mortgage payment calculations. This is purely for convenience and not an indication of the interest rate that might be offered to you by a bank. Therefore, this mortgage calculator for Canada is intended to provide estimates based on the indicated amounts, rates and fees. Whilst we make every effort to ensure the accuracy of these calculations, we cannot be held liable for inaccuracies. Alberta 365 does not accept liability for any damages arising from the use of this calculator.

5 money-making tips for newcomers to Canada in 2020

Are you one of the millions of newcomers to Canada? During my school years, I hated called a ‘newcomer’ whenever I transferred to a new school.

Being a newcomer meant you are the new kid who doesn’t know the culture of the school. You can barely find your way to to the toilets.

Such is the life of many newcomers in Canada. They’re trying to figure out how to get things done. Simple things like drafting a Canadian standard resume oftentimes prove to be a challenge.

If that were the only challenge, it would be understandable but there is getting schools for your children. Learning to drive on the right-hand side of the road. And of course, adjusting to the chilling Canadian weather conditions

I can’t do much about the above challenges, however, my best contribution to you will be assisting you making some money while you figure stuff out.

This information is relevant to everyone including those born in Canada. Nevertheless, my primary intention is to help newcomers find a way of getting some starting income.

5. Fill surveys online

make money filling surveys online

If you are coming from a third or second world country filling surveys online is probably unusual. But in Canada and general in the first world countries, you can make some decent money filling surveys.

And if you are really smart you can make way more than decent money. Obviously, you won’t get rich filling surveys but its a good start.

Anyways, you came to Canada in search of a better life. The cost of a better life is working hard and smart. Filling surveys is a good start, all you need is a phone and internet.

Swagbucks is leading the roost, the good thing about Swagbucks is that goes beyond survey filling. It offers:

Answer Surveys

Share your opinions and get free gift cards! Earn SB points when you answer fun surveys and polls.

Watch Videos

Watch entertaining videos and get free gift cards! Earn SB points for watching playlists that we’ve put together just for you!

Search the Web

Earn SB points when you search the web using our Yahoo! powered search engine!

Mobile App

Earn Free Gift Cards when you Shop, Answer Surveys and Watch Videos on the go!

Shop Online

Cashback shopping at over 1500 retailers including Amazon, Walmart, Target, and Starbucks. Earn SB points for every dollar you spend plus get access to exclusive deals and coupons to your favourite retailers.

Discover Offers

Get free gift cards when you check out exclusive deals and offers from well-known brands. You earn SB points when you sign up for new services, check out free samples, and more!

Play Games

Get free cards for playing games! You can earn SB points when you make in-game purchases through our partners at GSN, or play our original free games and earn randomly.

4. Do online freelancing! It’s an awesome idea for Newcomers to Canada

make money freelancing as a new comer in Canada

Yep! Online freelancing is still the ‘thing’ for people who are trying to make ends meet. All you need is a skill, it doesn’t matter what skill, it can be software engineering, graphic designing, writing, sales and admin, the list is endless.

You must be thinking this must be an option for tech-savvy people. Definitely not, you can even find jobs such as cleaning, plumbing and other heavy-duty jobs.

This is Canada you obviously can’t knock door to door asking for part-time jobs. People will report you for loitering or harassment or another crime along those lines. I am sure you get the point, don’t bug people at their homes.

Instead, check out part-time jobs on a website such as Kijiji. If you are lucky you may even secure yourself a fulltime job.

Well, that is for people who are technologically disadvantaged. For tech-savvy people, there are more options all over the internet.

You can try out the following sites:
FreelancerUpworkFiverr
Freelancer is an Australian crowdsourcing marketplace website, which allows potential employers to post jobs that freelancers can then bid to complete. Founded in 2009, its headquarters is located in Sydney, Australia, though it also has offices in Vancouver, London, Buenos Aires, Manila, and Jakarta.Upwork, formerly Elance-oDesk, is a global freelancing platform where businesses and independent professionals connect and collaborate remotely. In 2015, Elance-oDesk was rebranded as Upwork. It is based in Santa Clara and San Francisco, California. The full name is Upwork Global Inc.Fiverr is an online marketplace for freelance services. Founded in 2010 and based in Tel Aviv, Israel, the company provides a platform for freelancers to offer services to customers worldwide.

3. Join Airbnb Referral Program

make money though Airbnb Referral Program

I am sure you have heard of Airbnb. You have probably used their service sometime. But did you know you can make up to $40 when you refer someone?

Yep, just invite people new to Airbnb to join by sharing your link with them. You can get your link by clicking here.

Friends who sign up for Airbnb with your link will get up to $50 off their home-booking. And they get $20 to use toward an experience worth $60 or more.

Before we get ahead of ourselves, do you know what Airbnb is? In case you don’t know, Airbnb, Inc. is an online marketplace for arranging or offering lodging, primarily homestays, or tourism experiences. The company does not own any of the real estate listings, nor does it host events; it acts as a broker, receiving commissions from each booking.

2. Apply for BDC Business Loan for Newcomers to Canada

Apply for BDC Business Loan for Newcomers to Canada

Shocking isn’t it. In Canada, all things are possible. BDC offers Business Loans to newcomers. The loan is up to $50 000, if you want more you can talk to them. If you make a compelling case on why you should get more than $50 000 business loan considering you don’t have any credit history.

Experienced as a business owner or not, BDC helps immigrants handle the typical challenges of building a company in Canada.

There must be strings attached right? Of course, there are strings. No bank would give you money without conditions.

What are the conditions outside the will to pay back the loan? The eligibility criteria are shocking:

  1. Immigrated to Canada less than three years ago
  2. Have a permanent resident status
  3. Have a viable business plan

That’s it. And of course, you need to have a proper business plan and be actually skilled enough to run the business.

This is a rare opportunity. If you have what it takes to run a company and have that wow business idea, I recommend that you get in touch with BDC by clicking here.

If you are interested in 5 best banks for newcomers to Canada you can click here.

1. Start a youtube channel, sharing your journey to becoming one of the newcomers to Canada

Start a youtube channel, sharing your journey to becoming one of the newcomers to Canada

A few weeks back I met a Youngman that makes $7000 on youtube every month. All he does is record videos and share his experiences as a newcomer to Canada from Nigeria.

He posts the videos on his monetized youtube channel and then shares links to his videos on WhatsApp and Facebook groups with Nigerians.

Some of his videos are now sponsored by immigration agencies.

Between me and you, the guy is not even eloquent. However, that does not stop him from hustling.

Now that you have made it to Canada, wouldn’t it be wise to share your story on youtube and get paid for telling people how you did it?

Steps to making money on youtube:

  1. Setup and build your YouTube channel: This is quite simple, just go to Youtube and click sign in if you have a Gmail account. If you don’t, click signup and fill the required information.
  2. Add content: This is where stuff becomes interesting. Find a good topic to talk about, prepare talking points. Your topic can be anything that will attract attention, such as, “How Express Entry Works?” or “When to create express entry profile?”. And record your video. You can use a good smartphone with high Camera resolution. Don’t make your video too long or too short either.
  3. Build an audience: You are probably in many newcomers to Canada social media groups. Or groups with people who want to immigrate to Canada. That’s your target audience, share the links to your videos on those groups. If many people visits, youtube will think your
  4. Monetize your videos: In order to start earning money on your videos, you’ll need to enable monetization. This means you are allowing YouTube to place ads in your video. This also means that you acknowledge that there is no copyrighted material in your video.
  5. Get at least 4,000 watch hours to start earning money: Get reviewed after reaching 4,000 watch hours in the previous 12 months and 1,000 subscribers. Upon reaching this threshold, your channel is automatically reviewed to make sure it complies with the YouTube Partner Program terms and their Community Guidelines.
  6. Set up Google Adsense: Click the “Sign Up Now” button to begin creating your account. You must be 18 years or older to create your own account. If you are younger than that, you will need an adult to help you.
  7. Check your analytics
  8. Market your videos elsewhere
  9. Become a YouTube partner
  10. Increase your YouTube revenue with affiliate marketing

Conclusion

People usually don’t read the conclusion of an article like this. Therefore I decided to add the most valuable advice in this section.

As a newcomer to Canada, you want to make as much money as possible, otherwise, why leave your country and come to this cold country. Therefore you ought to act and make smart decisions.

The five steps above are all awesome but they may not be sustainable with the exception of starting your own business. Nonetheless, it’s also common knowledge that 95% of start-ups fail.

For first months, you can use them to make as much money as possible. But as we all know, technology changes fast. Most of the above solutions may be obsolete in the next few years.

What am I saying to newcomers in Canada?
Canadian education

While using the above money-making tips, work on getting Canadian education and certification. Most companies will not recognize your foreign education.

The best way to ensure longterm financial success and integration, in general, is to get a Canadian education

All the best my dearest friends, I wish you a prosperous and profitable life in Canada.

Sources:

  1. https://en.wikipedia.org/wiki/Freelancer.com
  2. https://en.wikipedia.org/wiki/Upwork
  3. https://en.wikipedia.org/wiki/Fiverr

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